How Loan Officers Can Build Their Referral Business

Referrals are a necessity if you want to build a successful mortgage business in the long term. New business is important — and you should have solid strategies in place for prospecting and marketing — but too often the importance of referral business is overlooked. It’s not that LOs don’t already know how important it is, but in many cases, they’re not quite sure how to get it consistently; They just don’t have specific strategies in place to build it. Fortunately, generating referral business doesn’t need to be complicated or elusive. There are a few simple but effective techniques loan officers can employ to start seeing results right away. Here are a few things to consider:

You Have to Earn It

Simple doesn’t necessarily mean easy. If you want to earn more referrals, there aren’t any shortcuts to get there. The loan officers that get the bulk of their business from referrals know that they need to go above and beyond for every client and create an experience worth talking about. Clients are only going to refer family and friends to someone they trust, so you need to earn that trust while developing a relationship with them. After that, you need to provide a remarkable service. Don’t just think about what other mortgage professionals do, but look to service providers more generally. What makes a service so memorable and impressive that you want to send your friends and family to experience it? The specifics are going to differ depending on the industry, but it’s more about how the service providers made us feel, the ease of the experience, and the connection we form with them.

You Need to Ask for Them

Beyond creating a referral-worthy experience, your clients will often need an extra reminder to send you referrals. When you communicate to your clients just how much you value their business and how much you appreciate their referrals, you provide them with some additional motivation to take the next steps. That small prompting can keep you top-of-mind when they come across someone in need of a loan officer. Some loan officers don’t ask for referrals because they feel like they’re begging for business, but that’s not the case at all — in almost every case, your clients will see a passionate professional who cares about their business.

You Should Create Partnerships

Your clients are just one of many sources for referral business. Look to your networks to create strategic partnerships that can generate referrals. These can come from your personal network, sure, but you’ll likely find better opportunities in your professional network. You can also build your network with professionals who might be interested in a reciprocal relationship. Real estate agents are usually the go-to choice, and they do make great partners, but they aren’t the only option. Builders, CPAs, and financial planners are a few other to consider. You have to be proactive here — if you’re serious about creating relationships, you have to reach out and initiate them.

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Once you get it going, referral business can be an invaluable stream that powers your business throughout your career.

If you’d like to talk more about building your referral business, or if there’s another matter I can be of assistance with, don’t hesitate to reach out. I’m always happy to set aside some time to connect.