Every year around this time, my business increases. Loan officers, mortgage brokers, and branch managers--in a flurry to set goals and make resolutions for the New Year-- look for training services to improve their skills. They have high expectations for the year ahead, and rightly so. Everyone wants to succeed in their business.

But, what happens on January 2nd? How about by February? March? April? Eeeeeek!!! Momentum starts to slow down and we all fall back into our old habits. We get too comfortable and our sales pipelines suffer. Remember, the loans you originate this month, are the ones that will close next month. In the mortgage business, we must not look just at today’s “sales” figures, but at tomorrow’s loans that are slated to close. How many loans have you had fall-out or die because of a stupid, little reason? Too many. And that is money out of your pocket.

If I added-up all the loans I have “lost” over my career, it would be in the many thousands, likely hundreds of thousand of dollars in lost commissions. If the average loan is worth about $3,000 to $6,000 each, you don’t have to lose many before you begin to take notice. Not every loan will be a winner. But, you have to deal with a certain amount of losers before the winners will pull through.

I stopped counting loans as being “sold” until they actually hit the closing table. That way, I don’t disappoint myself or count my chickens before they’re hatched. I suggest you do the same. It also makes you work hard for every loan and actually will improve the number of loans you ultimately close. It’s interesting psychology.

Just this week, I spoke to a good client of mine who has been in the loan business for about 4 to 5 years. She was very upset and told me that she lost a deal worth about $15,000 or so (it was a sizeable jumbo loan). After discussing things at length, and reviewing all of the steps along the way, we came to the conclusion that the loan died NOT because she did something WRONG, but because she did everything RIGHT! Ironic isn’t it?

She followed all the proper steps, worked diligently with all the third parties such as appraisers, title companies, etc., and set the proper expectations on when the loan would ultimately close. But, although she was extremely pro-active and had all her ducks in a row, she couldn’t control the most important factor in the loan process…HUMAN NATURE.

The customer was being less than truthful, playing games to avoid calls and had even lied on a few things upfront. The deal died. And so did her Christmas commission check. But, she was counting on that loan to pull through. After all, she did do everything “right” on her end.

My point here is simple…you can plan all you want, set all the goals and forecasts for the coming year with the best of intentions, but you can’t control human behavior. It’s the most critical factor in the loan process, and can mean the difference between success and failure.

As you gain more experience, you will learn how to silently “read” a customer. You’ll know if they are truly serious about the loan and are being honest. You’ll discover small clues along the way in the borrower’s documents which will help you read the “loan leaves” (that’s tea leaf reading for mortgage people!). And, you’ll quickly learn my golden rule: “kill them, or keep them…quickly”. Don’t spin your wheels on loans that go nowhere. Your time is far too valuable, and the good loans will get away.

It has been said that the mortgage industry is the hardest yet easiest business to be in. If you are seasoned, it’s simple. If you are new, it’s not.

As you look out over a fresh year with high expectations, treat your sales people well, be loyal to your account reps, become your customer’s trusted advisor, and--above all--cherish your processor. Don’t become a slave to the sales numbers, remember that you can’t reach your goals without the help and cooperation of other people.

Go out and make this year your best year ever. Best of luck in your business and your coming success.