6 Ways to Build Customer Relationships That Lead to Repeat Borrowing

Crazy bidding wars. All-cash offers. A lack of inventory. These are the predictions for what the US mortgage industry will experience next year.

As we start a new year, one thing we can be sure of is that the mortgage industry will remain highly competitive and borrowers will have plenty of options to choose from.

However, customers who feel appreciated and supported by their lender may continue with the same company even if they are aware of a lender with lower interest rates. They also may bring friends and family back to the lender, which can help increase volume over time.

In this article, we’ll discuss strategies and tools to help mortgage companies create positive customer relationships to help retain more business.

Personal relationships.

The best way for lenders to show customers how much they value them is by creating a personalized relationship with every borrower. This means more than just emailing or mailing them the same generic set of forms. Successful lenders have teams dedicated to customer success who are constantly looking for new ways to engage with clients and ensure that they have positive, helpful experiences.

Touchpoints to create close personal relationships include:

  • Sending brief introduction videos for the customer’s main point of contact
  • Having loan officers reach out to borrowers by phone
  • Taking the time to meet borrowers in person
  • Sending thank-you cards to customers when they secure a loan, pay it off, or refer other customers
  • Keeping in touch by sending out holiday cards and birthday wishes 

Prioritize convenience.

The proliferation of convenience stores, which typically sell groceries at a higher price point than supermarkets, demonstrates that in many cases, convenience trumps a cheaper price.

Having everything borrowers need at one lender helps them feel important and creates more of an incentive to stay than hunting around for the most competitive rates that will change every few years.

Mortgage companies can also prioritize convenience for their customers by:

  • Having 24/7 customer support
  • Providing a mobile app that makes it easy for customers to submit documentation or request a home value estimate
  • Offering online document submission that eliminates the need for borrowers to send paper forms
  • Providing virtual closings so borrowers can sign documents from their home office, car, or another location of their choice
  • Quick turnaround times on loan approvals and closing

Give incentives for repeat business.

It costs more money to get new customers than it does to retain current customers or re-engage previous borrowers. Therefore, it makes sense for lenders to offer incentives for repeat business, such as:

  • Waived application fees
  • Discounts on closing costs
  • Reduced interest rates
  • Cashback

Constantly ask for customer feedback.

Getting the customer experience right means asking for feedback every time a customer interacts with your company.

This can be done in a variety of ways, such as:

  • A short survey at the end of each phone call
  • An online feedback form after completing an application or closing on a loan
  • Asking for referrals from satisfied customers

Companies that fail to ask for feedback regularly risk becoming out of touch with client needs and alienating dissatisfied customers. Responsive lenders, on the other hand, keep the communication lines open by following up on customer questions and concerns.

Offer flexible options.

Borrowers have different needs and experience different obstacles with homeownership. For example, one of the biggest barriers to homeownership is saving up enough money for a down payment.

Successful lenders understand this and offer a variety of financing products to meet the needs of all borrowers. These flexible options include:

  • Interest-only payments
  • Deferred payments
  • Reduced mortgage insurance for low down payments

Provide non-discriminatory lending services.

Racism, sexism, and other forms of bias, whether conscious or unconscious, have a real impact on borrowing opportunities. Lenders that aim to create strong customer relationships will ensure that their practices are non-discriminatory to attract the widest possible customer base.

When borrowers have equal opportunities, companies are more likely to receive repeat business and referrals from satisfied customers.

How can Capacity help lenders create lasting customer relationships?

Capacity is a support automation platform that helps lenders scale customer interactions and remove friction from the mortgage process.

For example, by working with Capacity, mortgage company PRMG is, “now closing loans 11 days faster than the national average of 47 days… by automating every piece of the mortgage process.” 

Capacity’s intelligent routing helps ensure that borrowers always reach the right person to help them with their questions.

In addition, Capacity offers a variety of customer engagement tools discussed in this article, such as:

  • Live chat for instant 24/7 support.
  • Text messaging for follow-up on documentation or to provide updates on the status of a loan.
  • A customer portal that provides borrowers with access to their application and loan documents at any time.
  • Email notifications for document submission, closing, or other important milestones.

By using Capacity, lenders can focus on developing strong customer relationships and leave the day-to-day tasks of answering repetitive questions to automated workflows and bots that are constantly learning.

The platform also makes it easy for lenders to eliminate bias in the loans approval process because it uses objective data to determine what action to take next.

Focusing on customer relationships is the key to having a successful mortgage company in today’s market. Let us show you how we can help your mortgage company create lasting customer relationships.