Mortgage Sales Training
Being a successful loan officer requires good mortgage sales training and a drive to learn and work hard. Some attributes, such as knowledge of mortgage products and processes, are obviously necessary, while others, such as good interpersonal skills and industry knowledge, are subtle keys to earning business. The learning curve is high, but learning happens quickly in a productive environment.
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Products and Guidelines
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Loan officers should know the products they're selling inside and out, and have a good idea as to whether their customers will be able to satisfy underwriting guidelines. They should know what the mortgage company or lender offers, including the best or most popular products--for example, 15- or 30-year fixed rates. Most lenders also base their mortgage products on the underwriting guidelines stated in Fannie Mae's selling guide, available online. New loan officers should thoroughly acquaint themselves with this valuable resource.
Mortgage Software
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Some large mortgage companies may spend several days acquainting new recruits with mortgage software, while smaller companies or brokerages will expect new hires to hit the ground running. Large corporations will often use proprietary software, and smaller companies will use basic mortgage applications. Regardless, spend time in the beginning to practice taking loan applications and printing documents. It will cut down on user errors in the future as well as embarrassing and unprofessional moments during future appointments.
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Calculations
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Mortgage sales training should involve some basic education on how to make important calculations, but many companies will assume loan officers already possess these skills. Instead of relying on software, loan-to-value ratios, debt-to-income ratios and simple interest-only payments can easily be calculated with regular calculators, while monthly payments are easily calculated with scientific or mortgage calculators. Know these processes.
The Mortgage Industry
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Customers will often ask for a loan officer's advice on market conditions and how they impact mortgage interest rates. This is particularly important if they are about to lock in an interest rate. Loan officers should be introduced to the industry and be encouraged to stay current on the news affecting the stock market, the bond market, yield curves and rate indices impacting mortgage loans. Education provides the edge over competitors (and customers).
Sales and Marketing Skills
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According to the U.S. Bureau of Labor Statistics, a "loan officer should be good at working with others, confident, and highly motivated." They "must be willing to attend community events as representatives of their employer." Sales and negotiation ability, interpersonal and communication skills, and a drive to succeed also are important qualities. People buy from people they like, so it is often how well relationships are built and served that earns mortgage business. Loan officers should also either be taught or teach themselves how to manage a contacts database so they can keep in touch with customers and gain referrals through marketing campaigns.
Asking Questions and Learning by Doing
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The best mortgage sales training for loan officers comes from being encouraged to ask questions about unclear concepts, products or processes. In the mortgage business, the smallest detail can kill a transaction. Therefore, it is in a loan officer's best interest to ask questions up front. Good loan officers are often weeded out from the bad by how well they learn from others and from mistakes, and by choosing to work smarter, not harder.
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References
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