Do you know who the hottest, most qualified prospects are for your mortgage services right now? This may sound like a simple question but I believe your answer will determine your ability to survive and/or thrive in a down market.
In these challenging times you must be able to fill your day with conversations with people who not only need a mortgage but also those who can afford to leverage your services and products within a reasonable period of time.
The Warning Signs
Below is a list of 11 questions you can ask to find “mortgage red flags”. If any “red flags” present themselves during a conversation with a friend, family member, past client, prospect, and/or referral partner then you should offer them a complimentary Interest Saving Analysis. This analysis shouldn’t take longer than 10 minutes to facilitate and it will help you generate more qualified leads.
During your conversations ask the person you’re talking to if they…
1) ... own property as a second residence, investment property or are they thinking of purchasing one? If so, these clients are typically well qualified clients who should have a personal mortgage advisor looking after their debt to help them manage their real estate investments properly.
2) …have an adjustable rate on any of their mortgages? If so, let them know what's happening with rates and what the experts are saying about the attractive rates on fixed rate programs. This may encourage them to refinance or put you in the "Expert" category due to your fiscal literacy.
3) …plan to remodel or expand an existing home? If you know they have plans to remodel their home or if they’ve recently expanded their family through marriage, a new baby or other circumstance, you should offer a recommendation of the options available. Be sure to follow up with them and let them know where rates are at so they can make better decisions regarding the financing of the project.
4) ... plan to build or purchase a new home? If so, you should be providing them with information that can help them review the construction loan programs and process.
5) …have a 1st and 2nd mortgage at higher than current market rates? If so, discuss how a 1 loan refinance under the new increased loan limits can improve their cash flow each month and provide more money for savings plans or debt reduction.
6) ... have a fixed interest rate but plan to move soon in the next few years? If so, discuss short term, interest only ARM options especially if they may have to hold on to the property after closing on their new house for 6-9 months before it sells due to the slow market.
7) … are financially prepared for retirement or if they have equity in their home but no money in a retirement plan or savings account for emergencies, college tuition, etc? If so, discuss equity management strategies and introduce them to your referral partners (i.e. financial planner, insurance agent, accountant, etc.) who are equipped with the products and services to help them increase their personal wealth.
8) … have a large amount of consumer debt? You are uniquely positioned to relieve them of the burden of high monthly payments and possibly numerous medicals bills due to the lack of insurance. This very well may be your hottest prospect depending on their current equity position in their home.
9) ... have a jumbo loan? If so, tell them about the new conforming loan limits and reduced rates or how you can help them split the jumbo loan into two loans to lower their interest rate and possibly give them a Home Equity Line of Credit that allows them to draw on their equity in case of an emergency.
10) …have a child going off to college? If so, you can pave the way to help them fund this investment in their child's future without increasing their monthly expenditures using a refinance loan with lower monthly payments.
11) ... plan to changing careers or start a new business? If so, now may be the best time for a refinance depending on the circumstances. Remember any change in a client's situation presents an opportunity for you to review their situation with an Interest Savings Analysis and Mortgage Review.
The key to finding new prospects is to be aware of warning signs and Red Flags that require your mortgage assistance. We all know the best type of prospect is obviously someone who knows they need a loan but the next best thing is helping someone to understand how a new loan can help them improve their life. Most clients don’t know what the options are so share your knowledge and expertise when you hear a “Red Flag” present itself.
To survive this down market, we need creative ways to talk to more people about their finances. If we do the opportunities will arise for us to serve them and if we just ask questions skillfully and listen carefully we will find our most qualified prospects.
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