Pre-Qualification 2.0: Selling Emotion After The Objection

The title of this blog really sums up the Pre-Qualification process and is the start of how you can really maximize the time between now until the close of the loan (and after the close as well).  As I mentioned previously, Overcoming the First Objection is a task that will help you establish an initial rapport and really show that you are a professional in the field!

Now, when we get past that first objection of, “I’m already pre-qualified”, you should have two objectives in mind.  (1) Learn As Much About Your Client’s Real Estate Search As Possible, and (2) Build The Strongest Relationship With Your Client Through Questions That Trigger Emotional Responses.

A Pre-Qualification has very little to do with loan programs, and everything to do with emotion and that warm fuzzy feeling called trust!  If you can have a trust-building conversation with these clients and insert the pre-qual questions throughout the conversation, you aren’t selling the loan anymore, but you are selling emotion!

Instead of going straight into the questions on the pre-qualification, use a “tell me about” scenario (i.e. Tell me about the neighborhoods that interest you (pro’s and con’s).  These will open the conversation by the client telling you about their interests.  As Mark Madsen pointed out to me recently, people do not enjoy shopping for a mortgage, but they do enjoy shopping for a home. 

So, alter your sales approach and have the client talk about what interests them in the Real Estate process!  David Bartels points out in his blog Five Keys to Selling Smarter with Great Questions to care about the answer after the question is asked.  This means that you should write them down and know the answers that your client gives.  You will be able to utilize these later in the process as well!

After you get past the why’s of the neighborhoods, go into a visual question that will allow the client to see their family in a specific locality (i.e. So far in your search, which neighborhood can you see you and your family living?).  Not only does this show you care about the client’s overall views on their prospective Real Estate, but it is gives you an insider’s idea with regard to the Real Estate Agent.

Ask the client to describe their ideal home (i.e. Tell me a little bit about what you are looking for in this home).  This taps into more depth on the property description section of the 1003 asking the technical questions.  However, notice the difference between that, and “how many bedrooms and bathrooms are you looking for”?  There is definitely a significant difference there!

If there is a portion that was missed in the description, bring it up within the conversation, and avoid getting into the stringent questions like “Year Built”.  Instead, switch the approach to, “Now, do you see yourself in a newer home, or do you like the older homes”?  Just try to stay away from the actual 1003 questions.

After you find out that information, you can ask the question that will drive one of the better emotional responses, “How would it feel if you were to actually find that home tomorrow in that neighborhood with _____, _____, and _____.  Those blank spaces are the pro’s that they client mentioned when you were talking with him/her about the neighborhood’s that are preferred.  This is really starting to drive that emotion, and it really shows that you were listening and caring about the answers the client was giving!

In conclusion, after that first objection has been taken care of, it is extremely important that you go into something that interests the client; preferably a topic related to their home purchase.

The next segment to this will be about collecting the employment and income information from the client via conversation and not technical 1003 questions, and building a stronger relationship with the client while that is all going on!

Pre-Qualification 2.0: Overcoming the First Objection

I just recently posted the Difference Between a Pre-Qualification vs. Pre-Approval, which goes hand-in-hand with the proceeding post in maximizing your Pre-Qualification Process.  The post takes you through the various differences and processes of both a pre-qualification and a pre-approval.

 

Most Loan Officers in our vast mortgage industry view the Pre-Qualification process as a huge burden.  They tend to feel that they are a waste of their time right now for a minimal gain in the future.  In my opinion, that is completely off base.  The Pre-Qualification process is a place for you (as an industry professional) can shine!  However, there is that one obstacle that we have to get over before pursuing how to capitalize on a Pre-Qualification:

 

If you are receiving referrals or have a few different lead sources (internet, telemarketing, pay-per-click, etc) you always want to be the “one and only” contact for that client.  In most cases, that’s not what is happening.  However, instead of throwing in the towel, there are several phrases that you can say in order to overcome the “I already got a pre-qualification letter” objection:

 

1. That is excellent, Mr. ____!  I want to make sure that you were educated on all of your financing options and you completely understand them!   How many loan packages were explained to you? (or) What is your biggest concern with your purchase process?
2. That is absolutely not a problem, and I apologize for not getting back to you sooner!  However, I would love to show you what I can do for you since I have been in the industry for __ years, and I really don’t need to pull your credit to provide you with several options (similar to David Bartels’ White Paper scripts).
3. Great!  Have you already selected a Realtor?  I have a couple of Real Estate Agents that are excellent, and I would love to get them in contact with you.  Have you thought about anybody else to use in the process for your closing or title insurance?
4. I’m glad you were able to get in contact with someone already!  Most Loan Officers today are skipping over the pre-qualification process and going right to a pre-approval letter because it is a contingency letter stating that you have been approved through underwriting.  It gives you and the seller more confidence when you put an offer on your future home.  Typically, I can get this up and running in 24 hours; is it something that you would like to look into?
5. In today’s mortgage market, I am so happy that you were able to get Pre-Qualified!  I’m sure your Loan Officer has told you about how rates are affected by Mortgage Backed Securities and not the 10 Year Treasury, right? (courtesy of Mortgage Market Guide).

 

Now, what happens if the person says “No” or refuses to hear what you have to say?  Don’t panic, and definitely don’t argue with the client.  As the saying goes, “Kill them with kindness”.  After all, even though they didn’t get the pre-qualification from you doesn’t mean that they won’t get the financing through you, right?  Right!!

 

Your primary objective and goal right now should be out-teaching your competition!  Put their information in your drip e-mail campaign, or your follow up calendar.  Let the client know that you will be following up with them to check on their situation.  If you are missing a vital piece of contact information (home address, e-mail, secondary phone), ask for it so you can get them out market reports as they are published.  Ask if there are any reports or information that they would like to see right now.  And most important, stick to the Follow-Up schedule!

 Overcoming that first objection is the first step to maximizing your Pre-Qualification process and enhancing your relationship with your client!