Surviving Today’s Mortgage Market

Have current mortgage market conditions made you want to pull out your hair and scream? While the negative consequences of this fallout are real and painful, as a mortgage broker or loan officer there are positive actions you can take right now to improve your situation. And there are lessons all of us can learn to prepare us for the future.

What can you do right now?

1. Be careful of lenders who discount rates. Ask yourself — “Why is this lender so hungry for my business?” The lenders who are instable and less likely to be around tomorrow are also the ones most likely to discount.

2. Remain current with the constant changes in loan products and their guidelines. In today’s marketplace this means investing extra time, but knowing what’s out there could mean the difference between closing a loan and not closing it. Ask your lenders for updated guidelines — and be sure to read them. You should also take advantage of any product training your lenders provide.

3. Become aware of your self-talk and attitude. There are things we cannot change and things we can. If we cannot change something, being pessimistic and gloomy will not improve anything. On the other hand, a hopeful, happy attitude and positive self-talk can improve a situation. For one, you’ll feel better. Second, you’ll have less stress, which translates into a clearer mind and the ability to make better decisions. Third, your clients will feel your positive attitude and are more likely to do business with you than if you were pessimistic.

How can you get ready for the future?

1. Stay out of personal debt and reduce business debt to a minimum. Pay off your home mortgage as quickly as you can. Don’t buy a car you really can’t afford. Spend less than you earn. It’s good counsel, which is why you’ve heard it all before. Now’s the time to do it.

2. Build up your financial savings. By keeping business and personal savings accounts, you’ll be better prepared for both opportunities and emergencies, have greater peace of mind, and be better able to weather the market storms that will surely come. Financial reserves will also help you make decisions based on a longer-term perspective because you won’t be as worried about immediate survival.

3. Make decisions with a long-term perspective. This includes maintaining your integrity, focusing on quality loans, and looking out for the best needs of your borrowers. A good reputation with both lenders and borrowers is priceless and will benefit you now and in the future.

In review, work with good lenders, remain educated, and keep a positive attitude; avoid debt, save for the future, and maintain a long-term perspective. Following these steps can help you weather today’s storm and protect you against difficult times in the future.