If you have been following the Pre-Qualification 2.0 Series, we have handled everything from the First Objection which covered the first 15 seconds of your conversation, to Selling Emotion which is the second step to building a relationship,. We also touched on making ourselves different from typical L.O.’s out there by holding a Discussion About Employment instead of asking the typical 1003 questions. The talk about employment leads straight into a dialogue about Retirement Goals and their current assets, and finally into the dreaded conversation (from the client’s perspective) about their Current Liabilities.
At the end of discussing the liabilities, I briefly mentioned something about pre-empting with a closing question. What this means, and if you look back at the three example statements and questions that I wrote, you are asking a simple “yes” or “no” question related to them moving forward to see mortgage programs.
No matter what their answer is (either yes or no), you have all the information that you need to show them a pre-qualification letter, and it is extremely important that you e-mail them financing options while you have them on the phone (or while you have the client sitting right there)! Speed counts and this is going to set you apart from the next Loan Officer!
Now, I already know the question that you’re going to ask: “How can I put together all of those options right then and there without shopping the scenario around to the banks, or my pricing desk”?
Here are a few things that you already know:
- You already know the financial scenario and a good idea of the debt ratio
- You already have an idea of what their credit report will look like
- You already know what the national overnight average is for rate
Here are a few things that you have to keep in mind:
- The Client Knows What Their Credit Report Looks Like
- The Client Knows What Their Financial Situation Is
- The Client Knows Exactly What They Qualify For
The last statement in that list is the truth! Even though they will fight and fight for the lower rates, they know that they will (or will not) qualify for the lowest rate programs out there. However, it is up to you to explain why, if they truly don’t know. A simple rule of thumb is to keep it simple!
Here’s what works for me when I present pre-qualification programs for people with debt payments:
“As I said before, Mr. ____, I will be showing you home loans that will allow you to pay down the rest of your debt more efficiently. It’s important to me that you can pay off your existing debt as well as the mortgage. As a reminder as well, the rates that I am providing are the National Overnight Averages. I will narrow down the payment as well as the rate as soon as you decide to move forward with the offer and we can look into your credit.”
Make sure that you express that their situation is important to you! Again, this will separate you from the other Loan Officers in the field.
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Until then, feel free to check out these previous posts:
