A broker’s primary goal is to help their clients find the funding solution that is right for them. This is a simple goal, but successful implementation requires an understanding of how a client thinks. While the broker is familiar with the intricacies of the financial world, their clients will not be. It can be a confusing and often times infuriating place. Understanding how a client thinks can not only help move the process at a smoother pace, it can potentially save a fraught deal.
The client is a layman. You’re not.
The client is probably a layman when it comes to experience with banks and lenders. Odds are their previous experience was frustrating. Many clients are more familiar with personal or home loans than commercial financing.
Your client may have already been disappointed or too worried to try to find funding on their own. They are coming to the broker because they need help. No one likes asking for assistance, but clients understand that a broker has the expertise needed to guide them through the process.
In addition to recognizing that the client’s journey to the broker has been difficult, they also need to understand how to talk to speak to their clients. No one likes being spoken down to, and someone seeking financial assistance is no different. They also don’t want to be confused. Speaking a client’s language is essential to finding a balance in tone and content that will leave them happy working with the broker.
Communicate in a way that makes sense to your client.
The client wants to communicate in a way that is familiar to them. Marketing should plainly explain what a broker is doing. Bringing in a client is partially about showing that a broker can work with their clients to make the process easier. This is the first step to ensuring that the client is happy. Using terms that are universal and that the client will understand helps them not only to keep pace with the broker, but to feel like they have some control over the process.
Further communication should be done in a timely and respectful manner. Clients want to be informed. This is a major part of their life, and ensuring that they have all the information they need is important for a broker. If a client feels like they aren’t being informed of important updates, or that they are missing out on important information, they will be unhappy – even if the funding process is actually progressing very well behind the scenes. Confusion is a broker’s enemy. Make sure the client feels like they understand everything that is going on.
Understanding Clients’ Needs and Priorities
Loan broker clients often come into the process with an ideal set of criteria in mind—be it the lowest possible interest rate, minimal fees, or extended repayment terms. While hearing out the borrower, it’s also important to set expectations. The “perfect” loan package may not always be achievable due to market conditions, lender requirements, or the specifics of the client’s financial profile. Borrowers, in most cases, recognize that already. What clients truly want is a broker who will advocate on their behalf and work diligently to secure the best possible terms tailored to their unique priorities.
Most borrowers are willing to compromise on aspects that matter less to them when they feel confident that their highest priorities are being met. For example, a client aiming to hold their loan for its entire term might accept a higher early repayment penalty in exchange for securing a lower interest rate. Similarly, a borrower focused on short-term flexibility might be less concerned about slightly higher closing costs. It is the broker’s role to understand these nuanced preferences, guide the clients through available options, and ensure that they feel supported in achieving a loan solution that aligns with their primary goals.
Adapting Your Support to Meet Your Client’s Objectives
No two clients are going to be the same in how they look at working with a broker. This is where the broker’s skill and experience come into play. They must be able to listen actively and empathically to their clients, understand their unique needs and preferences, and then educate them on the available options that can help them achieve their goal.
Brokers need to stay up-to-date with industry trends, changes in the market, and loan products offered by different lenders. This enables them to provide valuable insights and recommendations to their clients, helping them make informed decisions about their mortgage needs.
In addition to understanding the client’s goals and staying knowledgeable about the industry, brokers also have access to a wide range of lenders beyond traditional banks. These lenders may offer specialized loan programs or competitive rates that may not be available through traditional channels.
By working with a broker, clients have the advantage of exploring various options and finding the best fit for their specific financial situation. This can save time and effort in comparison to approaching multiple lenders individually.
The Commercial Loan Broker Institute helps brokers to understand how to deliver on client needs as well as how to position each step of the process to their clients.
These are only a few of the ways that a broker can understand and better communicate with and support their clients. Recognizing that each interaction will be different and each client unique, and understanding how to adapt in the thick of the deal are skills necessary to become a successful broker. Want to learn more? Get to know our training programs and find the one that’s right for you.