Are You Selling The Rate Or Building Relationships? 

For more than 25 years, I’ve heard loan officers complain that their rates aren’t competitive. One of the first questions rate shoppers ask is, “What’s your rate today?” For far too long, the industry’s focus has been on rate—not on what is truly the best financial decision for the borrower.

Many salespeople sell rate because they believe that’s how deals are won. What I’ve learned over 25 years in mortgage origination is this: loan officers don’t win by selling rate—they win by educating borrowers on their options and aligning those options with the borrower’s long-term financial goals.

Do you remember all the ads for “No Points, No Fees” loans? That’s selling. That’s not being a Trusted Mortgage Advisor.

So how do you build trust? Trust is earned, and the most effective way to earn it is through education—by presenting multiple loan options and helping borrowers understand the financial impact of each. Presenting a single rate, in my opinion, is a waste of time.

To educate borrowers properly, you must first understand their full situation and the property they’re financing. How do you do that? Simply—by asking thoughtful questions, and then asking follow-up questions.

Let me give you a real example.

I once received a call from a rate shopper who identified himself as an investor. His first question was, “What’s your rate today?” He told me he wanted to purchase a home with a no-points, no-fee loan.

My first response was simple:
“I have 14 different rates today—and that’s just on one product.”

My second question was far more important:
“How long do you plan to own the home?”

He told me he planned to keep it for 30 years, pay it off, and use it as part of his retirement income. That one answer changed everything. That was critical information.

I asked him to send over the quote he had received from another loan officer so I could do a side-by-side comparison and offer additional options. I also invited him into my office so I could walk him through a full financial analysis. He agreed.

Fifteen minutes into reviewing the options, his first statement was:
“I’ve been taken advantage of five times in the last three years.”
He repeated it three times.

Why? Because I showed him the long-term advantages of buying down the rate and the interest savings over time. On just the first loan, the savings exceeded $54,000. He then asked me to review three additional loans to see if refinancing made sense.

Forty-five minutes later, he walked out of my office saving over $200,000 in interest—and committed to doing four loans with me. He never contacted the other loan officer again.

Why?

• Because I asked the right questions. Uncovering details matters.
  
• Because I presented five loan options. It was no longer about the rate; it was about his financial strategy
  
• Because I allowed him to make an educated decision.

Conversation and education built the relationship—and ultimately created a powerful referral source.

To him, I wasn’t a salesperson selling a rate. I was a Trusted Mortgage Advisor.

The software I used made all the difference. It was fully transparent, clearly outlining every fee and providing a complete financial analysis—including return on investment over time.

At the end of the process, the true measure of success isn’t just the loan closing. It’s whether the borrower would confidently refer their family and friends—knowing they were guided by a trusted professional.

That’s the difference between making a sale and becoming a Trusted Mortgage Advisor.

Randy Senzig is the Founder & CEO of The LANIS Group LLC.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: zeb@hwmedia.com.