Module 18: Building a Purchase-Dominant Production Business

A loan officer who closes 100% refinances has no business when rates rise. A loan officer who closes 70%+ purchase business has a business that works in every rate environment. Why Purchase Business Is More Valuable Refinance volume is driven entirely by rate movement — factors outside your control. Purchase business is driven by the housing market and relationship strength — factors you can influence. In a rising rate environment, refinances dry up. Purchase business continues — buyers still need homes regardless of rates. The Three Sources of Purchase Business Real estate agent referrals: The most scalable source. A productive agent sends 2–10 loans per year. Ten productive agent partnerships = 20–100 additional loans per year. Past client referrals: Every closed buyer becomes a referral source. 10–20% of a managed past-client database generates referrals annually. Direct borrower leads: From social media, content marketing, community relationships, builders, and employers. Pipeline Math Goal: $150,000 gross income. Average loan: $400,000. Average commission: 90 bps = $3,600/loan. Loans needed: 42 per year = 3.5 per month. What does 3.5 loans per month require? If 1 in 3 pre-approvals closes: 10–11 active pre-approvals per month. If Realtor partners average 3 loans per year: 14–15 active Realtor relationships. If 20% of past clients refer someone annually: 55+ past clients in your active database. Build backward from your income goal.