Texas Home Loan Blog: April 2007

While this is a shady business tactic.... it isn't illegal YET!!! 

I received an email saying this was being voted on May 2007. You need to be heard so please contact Texas Legislature. The bill states it takes effect Sept 2007.....so hurry. If you do not know who to write or how to contact your legislators, then follow this weblink to find out how to contact them by email: http://www.capitol.state.tx.us/resources/FAQ.aspx#2

The background on this is that builders have gone from offering a small incentive to go to their mortgage company to now withholding up to $25,000 in upgrades if a buyer doesn't go to their mortgage company. As a result, an unsuspecting buyer signs a contract with that incentive/penalty, after being assured that the builder's mortgage company will offer a market rate and costs, only to find out prior to closing that the rate is considerably higher than the market but they can't get out of the contract at that point - - and are stuck choosing between losing thousands of dollars on the mortgage or losing thousands of dollars of their own purchase money that was supposed to go toward the house. This bill can stop that practice if you and your friends will write your legislators.

House Bill #3798 A BILL TO BE ENTITLED AN ACT Relating to certain sellers of homes offering a benefit contingent on the use of a specific mortgage lender. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 35, Business & Commerce Code, is amended by adding Section 35.65 to read as follows: Sec. 35.65. SELLER PROHIBITED FROM MAKING BENEFIT CONTINGENT ON USE OF MORTGAGE LENDER. (a) A person who builds and sells a single-family residence may not offer or provide a benefit to a potential purchaser of the residence as consideration for the purchaser's agreement to use a mortgage lender specified by the person for a loan to purchase the residence. (b) A person who violates Subsection (a) is liable to the purchaser for: (1) any damages arising from the violation; and (2) reasonable attorney's fees and costs. (c) A purchaser may not waive the right to sue under Subsection (b). SECTION 2. This Act applies only to the sale of a single-family residence closed on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2007.

http://www.legis.state.tx.us/tlodocs/80R/billtext/pdf/HB03798I.pdf <== copy of the text of this bill.

http://www.dallasloanguy.com/wordpress/

Tom Burris
DallasLoanGuy.com

Texas Home Loans

In the past week or so, I have gotten 3 loan applications as a direct result of my Blog here on AR.

I am amazed every time someone calls me and says they found me on the Internet(people used to not be able to find me on the Internet). Now they tell me they saw me on ActiveRain and need a Texas Home Loan. And the quality of applicants have been good so far too....!!!

I know that I haven't used this site to it's full potential. I am very new at backlinks and anchor text and yadayada. But, I have a ton of articles printed and others bookmarked for research later. The little I do, and how badly I do it... has given me tremendous optimism for what I can make out of this place.

Thanks to Renée Burrows (Boomer Sooner, Renée)I am now a part of a very exciting place chock full of professional 'go-getters'. Since I like to surround myself with successful people, this has been a blast.

I hope I can learn enough to give a little bit back to this place.

In this competitive business of mortgage lending, relationship marketing is the most effective method to grow and maintain your business. Shockingly statistics show that 93% of purchasers are satisfied with the professional they used. However, only 11% return and buy from them again. Why? It's because they don't remember their name.

Staying Visible To Past Clients is key to your success!
As a fact, the average homeowner moves about every three to five years because of changes in income, family size or other needs. You must work at having your past clients equate your name and face with all their mortgage needs. Maintaining high visibility hinges on reasons to stay in front of your clients.

Many companies have annual or semi-annual customer appreciation events, inviting past clients, referral partners and business associates to attend. Barbecues, tailgating or ice skating parties and the like are an effective way to meet with this group face to face and reinforce your referral business.

Try Something New:
Step outside the usual ideas and try something new. People appreciate gestures that give them something of value. I read of an idea from Bliss Sawyer that you might want to consider. You could offer a Shred-A-Thon that will help your clients prevent identity theft. On a specific day have commercial shredding containers available at your office for people to dispose safely of their sensitive documents.

Encourage recipients to invite friends, family and coworkers to take advantage of this free shredding event. Offer a free report on what types of things to shred. When people call in for the free report, if they are not currently in your database, ask for their mailing address as well so you can market to them in the future.

During your event, have refreshments and a giveaway to keep the excitement up. Make sure all your origination staff is available to meet and greet. Take the opportunity to ask for referrals and have a plan in place to follow up after the event. This can even be an annual event, build it up by mentioning it to clients throughout the year so they can save their sensitive paperwork for this simple way to dispose of it safely.

 Yet another article written for originators.... but certainly applies to real estate!!

Tom Burris
DallasLoanGuy.com
Home Loans for Texans

Growing up, most of us spent time trying to avoid having other people talk about us - especially the mean kids in school and on the play ground. Today, we feed our families on having people talk about us. People are increasingly turning away from professional recommendations for their buying decisions and turning to friends and family. This trend should have a STRONG affect on your marketing efforts.

People are talking about you. What are they saying?
I read about marketing report that showed that 74% of people in the U.S. turn to friends and family when making important buying decisions. Most of this is person to person but a growing share is among virtual communities on the web. I get a ton of business by answering questions in chat rooms.

People are talking to each other and they are looking for services and products they can trust. Influencing word of mouth needs to be part of your strategy because today everyone is talking to everybody.

Staying Visible To Past Clients is key to your success!
As a fact, the average homeowner moves about every three to five years because of changes in income, family size or other needs. You must work at having your past clients equate your name and face with all their mortgage needs. Maintaining high visibility hinges on reasons to stay in front of your clients.

Is What You Do Memorable?
How does what you do benefit the quality of life of your customers? Life events, not the level of interest rates, drive borrowing needs. Helping people achieve the fullness of their life is remarkable. Doing a good job on their transaction isn't.

I read a quote from Tom Ward, one of the most successful mortgage originators in the country, who said, "Mortgage originators need to be blue collar financial planners for their customers. Most often we are the only financial professional they work with as just 1% of people work with financial planners. If you do the remarkable - if you benefit their quality of life - then you've given your customers something they will talk about..."

After your next meeting with a new client, I want you to ask yourself this, "What do I do to inspire this client to tell others about me?"

Although this is written to a mortgage pro, it still applies to Realtors.

Tom Burris
DallasLoanGuy.com
Home of the FREE one-on-one credit consultation.