Pre-Qualification 2.0: Information on Liabilities

Having a conversation about liabilities with your client is one of the most important aspects of the pre-qualification process.  Because we don’t necessarily have to collect the credit report from the clients for the initial qualification, we have to stress the fact that we need what they are currently paying on per month in order to give an accurate pre-qualification letter.

 

There are a couple areas that we really need to focus our discussion:

1. How many accounts
2. How much is the balance
3. How much do they pay per month

Of course, these seem extremely simple to obtain by just asking those simple questions, but is there a way that we can build on the relationship?  Absolutely!

 

Make sure that you ask the open-ended questions, and empathize!  Asking an open-ended question (i.e. Tell me about your current monthly expenses) will allow both a quantitative as well as a qualitative response because they will provide emotional feedback as to how they feel with regard to the bills.  It also allows the client to tell you the number of accounts, and the amount that they are paying on per month per account.  And that was done all in one question.  The client feels in control of the conversation.

 

The only information left (if they didn’t answer in the first question) is the balance on the accounts.  Try to put a spin on it, and regain the control by asking a simple short answer question (i.e. How much do you owe on each of those accounts?).

 

You can follow that up by asking questions that will build emotion (i.e. How long will it take for you to pay off that Visa credit card?).  Use this answer to your advantage in the sales process.  You can mention anything along with lines of:

• You seem like you have everything manageable right now.  I was planning on showing you some financing options to help you pay off the rest of the debt quicker.  Are those options still something that you’d like to see?
• Pardon me for saying this, but it seems like you just can’t get rid of that debt.  Would it be ok if I showed you some mortgage programs that could potentially help you get rid of your debt?
• You have quite a bit that you are paying on every month.  I am going to look at some options for you, but I don’t want to overextend your budget.  Is there a specific range of payments that you are looking for?

Each of these little snippets are both showing the client that you care about their unique situation.  They also show that you want to help them with their financial goals.  And, it helps the closing argument by pre-empting with a closing question.

 

All in all, discussing liabilities with your clients should be another opportunity for you to build a relationship with your client!