Common Reasons Why Your Deals Aren’t Closing

As loan officers, we have to be proficient in closing deals. We need a steady stream of new business coming in if we hope to have a viable, long-lasting business. You’re not going to close every deal, but if you see a pattern emerge where you’re not closing many deals — or any deals — then it’s time for a deeper look. Unfortunately, it’s rarely one thing that’s contributing to a poor closing ratio, and it’s worth going over some of the common reasons to help find a solution to why your deals aren’t closing:?

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Buyer Qualifications

You’ve likely discovered that not all buyers are equal. Some aren’t in any position to buy, and some just aren’t ready to move forward even if they do qualify for a mortgage.?Taking some additional time to qualify your prospects before investing time in them, or targeting higher-quality prospects, are both good strategies. We’re looking for quality over quantity here. Going through the qualification steps can help you to find the right buyers – the ones ready and able to make a deal. A good referral partner can be perfect for sourcing better-quality prospects. A financial planner, for example, can refer prospects who almost always have their finances in order (more on building stronger referral partnerships, here). Always keep in mind that the qualifications and quality of prospects are directly linked to your ability to close them.

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Understanding Individual Needs

Every prospect has a unique set of needs. They may need a specific product, or their personal situation may leave them little room to maneuver. We not only need to take the time to fully understand their situation from the very start, but we also need to have comprehensive knowledge of every product available, so we’re not trying to push them into a product that doesn’t suit their individual needs. We can’t create potential future problems for clients just to get the sale. And if we work with borrowers on a personalized level, we can always keep their needs a top priority.

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Establishing Trust

This can often be solved by taking the time to understand a prospect’s individual needs, but we need to establish trust at an early stage in every relationship. We want our clients to have confidence in our ability, and to understand that we have their best interest in mind, and that won’t happen if we haven’t earned their trust. That trust also comes back to benefit us later in the form of referrals, so the importance of trust can’t be neglected.

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You Didn’t Sell It

We’re in the finance industry, sure, but we’re also in the sales industry. Selling comes naturally for some of us, but it can prove challenging for others. As we’ve discussed, we need to understand individual needs and establish trust, but we also have to be affable, confident, and engaging to be effective. Your prospects know that you’re not their only option to get a loan, and you’re going to have to make a favorable impression if you want them to not only choose you to represent them, but to stick with you all the way through the process.

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You’re Trying Too Hard

So, we have to sell it, but we can’t oversell it. The days of aggressive sales tactics are over —buyers are just too savvy these days. Being pushy will only serve to alienate prospects, and once you’ve overstepped, they will no doubt find someone else to work with.?And even if they stick with you, they probably won’t use you again in the future or tell their friends and family about you. Again, stay personable and personalize the experience for each prospect. That approach will get you 80% of the way to the closing table.

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Spend a little time finding out if any of the above reasons are applicable for you, and if they are, with just a little effort, you can correct them and improve your numbers.

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