Here is an item by item listing of the disclosures pursuant to new changes to Regulation Z, aka “The Truth in Lending Act” and when they are disclosed:

At time of application:

• “Key Questions to Ask About Your Mortgage” pamphlet
• “Fixed vs. Adjustable Rate Mortgages” pamphlet, which would replace the “Consumer Handbook on Adjustable-Rate Mortgages” booklet.
•  Revised ARM-loan-program disclosure with terms in a question –and – answer format.

 Within three days of application:

• Revised early Truth in Lending Act (TILA) disclosure, which also would be required three days before charging any fees other than those for credit reports.
• New calculations for annual percentage rates and finance charges to be more inclusive of third-party charges.
• Column comparison of interest rates for borrowers with varying credit grades.
• Summary of key loan features, total settlement costs and potential changes to interest rate and monthly payment

 Three days before consummation:

• Final TILA disclosure
• Procedures for disclosing loan changes after the final TILA

After consummation, note that the time period for notice of changes to ARM’s is now 60 days, and more-detailed statements are required for payment-option ARMS.

The Harvard Business School did a study to determine the common characteristics of top salespeople.

The evidence they found is clear that most people can be top sellers if they are willing to study, concentrate and focus on their performance.  Here are the attributes the study found in highly successful salespeople:

• Did not take “no” personally and allow it to make them feel like a failure.  They have high enough levels of confidence or self-esteem, so that, although they may be disappointed, they aren’t devastated.

• 100% acceptance of responsibility of results.  They didn’t blame the economy, the competition, or their company for dips in closings.  Instead, the worse things were, the harder they worked to make negatives work to their advantage.

• Above average ambition and desire to succeed.  This is a key area because it affected priorities, how they spent their time on and off the job, with whom they associated, etc.

• High levels of empathy.  The ability to put themselves in the customer’s shoes, imagine needs and concerns, and respond appropriately was a habit.

• Intensely goal – oriented.  Always knowing what they were going after and how much progress they were making kept distractions from side – tracking them.

• Above – average will power and determination. No matter how tempted they were to give up, they persisted toward goals. Self-discipline was a key.

• Impeccably honest with themselves and the customer.  No matter what the temptation to fudge, these people resisted and gained ongoing trust of customers.

• Ability to approach strangers even when it’s uncomfortable.

            How many did you rate high in?  What should you be doing to help yourself?  Selling is a great field filled with opportunity.  But that opportunity must be utilized… and that takes concentration and focus.

Establishing Credibility

Louis De Rose, CMC, is a nationally recognized consultant and seminar leader, specializing in industrial marketing and sales.   He is also the author of Value Selling (AMACOM).   For more information contact De Rose & Associates Inc. 2428 La Costa Avenue, Carlsbad, CA 92009 or call 760-753-0283.

 Credibility is largely a function of the salesperson’s performance.  It’s the salesperson who sells the promise of value to begin with and who commits his company to supplying it.  Hence, it’s understandable that the customer looks to the salesperson when value is not supplied or is in jeopardy.  Here are five steps to establishing credibility from the customer’s view.

1. Know your product or service.
Knowledge – or the lack of it – is a critical factor in the customer’s appraisal of performance.

2. Know the customer’s business.
The more salespeople know and understand about their customer’s business, the more credible they become as a seller of value.

3. Give attention to detail.
When the salespeople cost customers additional time and money, their credibility as value-sellers suffers.

4. Provide meaningful information.
When salespeople provide meaningful information, the customers will look to them for recommendations and advice.

5. Follow through after the sale.
Servicing accounts means taking personal responsibility to assure that values sold are in fact supplied.

Reprinted from The Selling Advantage, issue date 3/27/09, by Progressive Business Publications, 370 Technology Drive, Malvern PA 19355. Page 2.
 

If your Realtor or builder makes a suggestion for a lender, be sure to talk to that lender. There are several reasons they make recommendations.

One reason Realtors and builders make suggestions is because they want to recommend someone reliable. Reliability is important to you, so that you don’t end up with a horror story to tell.  Reliability is also important to the seller, the agents, and everyone involved in your transaction because if the deal doesn’t close, everyone walks away with nothing.

When agents and builders recommend lenders, they often develop a certain amount of “clout” in dealing with those lenders.  This can help in a situation where you need to cut through “red tape” and get something done quickly.

When buying a new home, dealing with a recommended lender is often very important.  This is because there are a lot of intricacies involved in new homes that do not exist when buying resale.  If you ”shop” around to find your own lender, you may end up with someone who quotes a great rate and is great with refinances or resales, but has no experience with new homes.  This can lead to problems or delays.

Over the last ten years, real estate companies and builders have built up their own mortgage brokerages.

“Bundled services” like this make sense because it adds another profit center to the company.  This is useful because it helps real estate companies to offset higher commission splits with their agents.

In the early days of “bundled services” the loan officers and staff were often sub-par and the quality of service may not have been so great.  Things have improved since then.  However, because this is “captured business”, sometimes these lenders don’t have as much incentive to offer you great deals or lower rates.  All you have to do is let them know you are “shopping rates” and they will probably work toward accommodating you as much as possible.

Never automatically disqualify a recommended lender, but be sure to be asking questions about any relationships between the lending company and your builder or real estate agent’s company.  That will help you be more vigilant on getting the best interest rate and the lowest costs. California real estate and business law forbids any party in a real estate transaction, to “steer” potential clients to a lender, builder, or any contractor. Consumers should be given the contact information of at least 3 competing entities so comparisons can be made without the taint of influence.

CONCLUSION

Make sure to do a little shopping for yourself.  By knowing the interest rates of the market and making sure your loan officer knows you are looking at rates from other institutions, you can use that as leverage to make sure you are obtaining the best combination of service and lowest rates. All things considered, your focus should also be on the companies which provide you with the best follow-up and customer service.