The shift towards online lenders can be quite challenging for traditional lenders to navigate, but there are still ways to stay competitive. Here are several strategies to consider:
Highlight Your Unique Value Proposition: Stress the benefits of working with you over an online lender. This might include personalized customer service, in-depth knowledge of the local market, or a broader array of loan products. You can also mention your ability to provide quick and flexible solutions, something that many online lenders may not be able to match.
Educate Agents and Buyers: Explain that while pre-approvals from online lenders can be convenient, they may not always be the best option. Online lenders often promise lower rates but might have hidden fees. They may not provide the same level of service and support during the home-buying process as you can.
Stay Competitive: Ensure your rates and terms are competitive with online lenders. You can do this by regularly researching the market, keeping abreast of changing mortgage trends and adjusting your products and services accordingly.
Build Strong Relationships: Foster close relationships with real estate agents. Understand their needs and help them meet their objectives. You could offer to co-host educational events for buyers or provide them with valuable content they can share with their clients. Make yourself a resource they can't afford to ignore.
Create a Smooth, Modern Application Process: If the convenience of online lenders is a key selling point, you can mitigate this by streamlining your own application process. Consider investing in digital tools to make the mortgage process as seamless as possible. This could include an online application portal, electronic document signing, and regular email updates on application status.
Offer Second Opinion Services: Promote your willingness to offer second opinions. Some buyers might not know this is an option. Provide an easy-to-understand comparison of what you can offer against the buyer's existing pre-approval, helping them see if they're really getting the best deal.
Follow Up Regularly: Stay in touch with agents, even if their buyers are initially going with online lenders. Agents may encounter difficulties with these lenders and remember your offer to assist. Regularly checking in can keep you top-of-mind for future opportunities.
Remember, not all agents will be responsive to these strategies. However, by consistently providing value and building relationships, you should be able to convert some agents to your cause. And when you do, they're likely to become strong advocates for your services.