Perfectly Packaged Presentation, It’s the Difference!

How many times have you chosen to to buy something based on the way that it was presented? How many times have you turned away from buying something because it was disgusting looking?

Bear with me for a moment: You have just went out to your favorite restaurant and had the meal of your life. There is a little left over so you get a to go box. You bring home the meal and what do you put it into:

a) Tightly sealed ziploc container

b) Plastic wrap

Yes, that is correct you generally will put it into the tightly sealed ziploc container. The reason that would do this is simple. We want to do the very best to preserve the integrity of the food so that we may eat it another day.

One more quick example: Imagine that you are shipping an ancient vase to your relative across the country. Are you going to

a) throw it in a box

b) Tightly wrap in bubble wrap and put it in a box with styrofoam peanuts to protect it.

You may be beginning to wonder what any of this has to do with loans. The answer may not come as a surprise either. Perfectly Packaged Presentation, It’s the Difference between whether or not your loan will be Approved.

The biggest item that separates one Loan Officer from the next is their ability to package a loan. A loan that is packaged and presented well can fly right through the system. It will make the experience seem seamless.  I qoute from a previous customer “I’m still amazed how easy the whole process was.” This qoute had very little to do with me and a ton to do with the customer being so well prepared.  It was also because all of the legwork was done up front. This customer currently owned a home with little to no equity and was buying a new home. Anyone that is in the industry will tell you that this is more difficult than it sounds. It came down to the “Motivation” of a client to buy a new home. In this case there was recently a new job acquired and both were commuting. The location of the new home was closer to the new job. We prepared a letter explaining this in full detail so that when the underwirter received the file there was little left to explain. There were a few other caveats to this file but as the customer said, “it was rather easy.”

Underwirting - When you are preparing a package to go to the wholesaler to be underwritten it is simply not enough to throw the basics of the file together and hope to send the rest after the approval. Loan Officers rush and are rushed to get to certain stages of a transaction and will often times submit a package before it is ready. This is disastrous. The result is an underwriter that will have to look at the file more than once. Taking an underwriter out of rhythm and given them less than your best will lead to a denial.

Let’s put this into perspective and ask ourselves the following questions: 1) Can I or should I make a life changing decision without all the facts? 2)When given only part of a story and it smells like fish am I likely to say yes? 3) If I open up a package and everything falls to the floor and it is not in a clear concise order am I likely to be excited to proceed with the rest of the file? 4) If I was asked out on a date and my date arrived to the house with a stained white shirt with holes, pants no belt and two different shoes would I be excited to go to dinner?

All of these questions are designed to encourage you to say no. The same thing that an Underwirter is going to do when they look at a file that is incomplete.

Underwriters are human and they are in the job because they like to help homeowners obtain financing. Beleive it or not they are simply there to take the package that we deliver with an approval and verify the supporting documentation has been provided. When a file is in doubt or may contain a few nuances it is the job of the Loan Officer to tell the story as to why this file should be a go. Give them all the detail of the file in a clear concise manner. Tell a story that makes the Underwriter sympathetic or even empathetic to the situation. They do want to approve files.

Loan Officers are separated by this ability to package and present. You can make a name for your self that is of high quality or of poor quality. We all have equal access to the money you desire to buy a home. However, it is in the relationships and more importantly in the packaging of the loan that makes your experience. I have closed several loans that were declined elsewhere over the years. Many times I was asked what was my trick. The trick is in the packaging. The trick is in the Presentation. It’s the difference between the approval and the denial.