Answer To Matthew Lee

Matthew Lee said...
For Pay It Forward Questions?
!. How much do your charge in Points on Average-How do you differ in pricing b/t prime and sub prime
2. How do you explain your brokers fees to clients so they have no objections to what you are charging?
3. If you were creating a Operations Manual for your business and were outsourcing it- What would be your criteria(experience) for the company/person that writes the manual for you?Do you know of any good resources to get this done(outsourced)?

1. We normally charge 1% origination. No application. $495 processing, plus credit and appraisal. We increase the pricing based on the difficulty of the loan. Sub prime are harder to place, more work involved so we charge more. On smaller loans, we charge more. Anything under 80,000 pays 2 points or more.

2. We talk about them as if they are a given. We don't ask to be able to charge them. We tell them this is what we charge. Like a lawyer quoting a per hour fee. Some have objections. So we show them a list of everything we do for them. Then we show them that paying us a little now, will save them a lot in the long run because of the way we will handle the loan and get them a great rate.

We also presell and use physiological influence to make them want to work with us. We create an aura of, "we don't need your business", but you should give it to us anyway.

3. A mortgage company Operations manual has to be done by a person with mortgage experience. You can pay to have a general one created and then you would probably have to modify it. Even if you took a manual from another mortgage company and wanted to use it, you should not. Make yourself stand out and put that in your operations manual.

If you are interested, call my officer at 713-782-5626 and talk to Mike Larson about our operating manual. I haven't thought about it, but if you want to purchase a copy of it, we might be able to work something out.

Another option is the E-Myth people. They have a program where they walk you through all aspects of your business and help you develop your own. It's a time intensive project, but I think making your own is still the best way to go.