When joining any team-based sport, every member must work effectively together to give a strong performance and successfully complete a game. When it comes to a real estate transaction and working with consumers, the same team-based method must be demonstrated to make a closing successful. This can be done by creating effective borrower collaboration with all parties involved in the transaction. In recent months, borrower collaboration has proven to be a hot topic surrounded by much discussion. However, it has been widely misconstrued on how it fits in with the current mortgage procedure. Here are some common misconceptions around borrower collaboration and how you can build effective relationships with borrowers.
Many lenders believe that engaging with borrowers during the application process or when the borrower is searching for the loan is sufficient enough. Well technically yes, you collaborated; however, true borrower collaboration spans beyond an online origination. Engaging and working with consumers from the beginning of the transaction should follow through to the closing, servicing and eventually their next loan. This should be a continuous connection with constant interaction with borrowers.
Don’t get stuck in the common mindset that a real relationship with borrowers isn’t needed. In today’s world, the most relevant way to connect with customers is by building electronic relationships with borrowers, from the beginning of the transaction throughout the entire life of the consumer. Once the industry recognizes and begins to utilize these concepts, a new business model emerges, which is both cheaper and more repetitive compared to the current “one-and-done” approach.
True borrower collaboration should go one step further by creating a unified team for borrowers, including not just the lender but the title company, real estate agents, and other service providers. After all, that’s what the transaction is to the borrower. Because each party is involved with the transaction, a unified front of active communication is needed to truly engage the consumer and create the true definition of borrower collaboration.
According to the White House Office of Consumer Affairs it is 6-7 times more expensive to acquire a new customer than it is to retain an existing one. Here at Pavaso, we turn a mortgage into a lifetime electronic relationship where customers build loyalty to those who engage with them. As if it could get any better, this connection with borrowers also reduces expenses, creates new revenue, produces fewer errors, features higher security, and allows for faster closings.