The firm had focused heavily on refinances during the previous decade. But as market conditions changed, so did Mecklenburg’s strategy. “Mid-2022 through to now we’ve worked at getting back into the purchase side of things,” Muth said.
Competing on rate without compromising clarity
With thin margins in many regional markets, Muth believes brokers must lead with clarity. “The first thing would be to try to position yourself more as an advisor and not just throwing out the lowest rate available,” he said. “A lot of other companies… don’t bring up fees when quoting rates. They just quote the rates they know consumers like to hear without bringing up the cost of the rate.”
He encourages clients to consider broader factors, especially if rates may fall in the near future. “Maybe be more cost-sensitive, not so much rate-sensitive. Maybe take a higher rate, let us pay a good portion of your closing costs if you’re going to be refinancing in 16/18/20 months from now.”
That transparency also helps build borrower confidence, especially when larger lenders fall short. “We got a loan the other day that was turned down by another large company after 45 days… Within 24 hours I had the loan approved and we closed eight days later,” Muth said.
Responsiveness as a market differentiator
In competitive purchase markets, being able to move quickly often matters more than rate. “Essentially, just having pre-approvals ready to roll,” said Muth. “Having direct access to me after hours, being able to produce the letter immediately.”