Ask First and Answer Next

We all know that clients have one surface conversation with their realtor, and then lenders can dig deeper to the root of a financial story. One frustration I often hear from my realty partners is how they could know the best lender/program to refer to their client the 1st time.

Most realtors have their "go to" lender that scrubs all their leads and prospects. This method works best for well qualified buyers. It's not that this routine is a bad idea, but blindly qualifying, does not always serve a client, or the realtor.

When we take the time to have the preliminary conversations with buyers, we can better serve them, and build that immediate rapport. Initial Questions and Answers can make the transactions much smoother and sets expectations for each party. Allowing them to ask us questions and providing those resources and solutions builds trust. In today's market, we all rely upon our technology to expedite our processes, but this initial conversation should be a non-negotiable in every relationship with a client.

What is the best way to ask the questions and to know what answers or solutions your client needs? Just Ask. Make your initial engagements very conversational but ask questions that require detailed responses.

Here is a conversational list to better understand the needs of your potential client. I've also listed why this information is important to the lender/you as a realtor so you can prioritize your buyer's needs and your time. These questions should be asked as a natural progression of conversation.

These are the core questions lenders will ask when we verbally take an application. Our questions are just more direct.

What is motivating your purchase?

???????????????Knowing WHY a client is inquiring or their motivation will help you overcome any future hesitation or objection.?If need be, you can remind them of their compelling WHY.

When would you ideally be moved in?

???????????????Let the client tell you their own goal and timeline. This will help you set realistic expectations and separate those merely inquiring from a serious shopper.

Are you currently renting with a lease in your name??

???????????????This is a stability and creditability?indicator/ if the deal is marginal, we can rely on this reference.

When does your lease renew?

???????????????What is their time frame, and is it realistic? Did it match their previous answer?

How much are you paying now and how long have you lived there?

??????????????Lender will document a 2-year residential history. It will also likely indicate what their qualification budget will be.

Are you legally married?

???????????????In a community property state, a buyer is unmarried or married. "One to buy and Two to sell" means the spouse must sign at closing, or a free trader is required prior to closing. (if your lender permits it)

Will you be applying by yourself?

???????????????Can they qualify by themselves?

Do you work? What do you do for a living?

???????????????Is the client retired or working? Based on their job title, you can get a feel for the type of income they earn without asking how much money they make.

How long have you worked there?

???????????????The lender will document a 2-year history. Stability is key.

Are you self- employed? Do you have a small business??If so, how long?

???????????????Qualification is different for self-employed borrowers because of the 2 years filed taxes/income average.?If they have a small business, it may subtract income from other qualifying income.

Have you filed this year’s taxes?

???????????????Lenders now require the most current years taxes to be filed now based on IRS deadlines.

How will you make your contract deposits and down payment?

???????????????Have they even thought about this? Do they have savings? Can they bring the money to the table?

If you had to overbid to get the house you wanted, could you pay the additional funds in?cash?

???????????????Can they compete aggressively? This allows you to set expectations for current market conditions.

Are you confident about?credit qualifying?

???????????????This is a smooth way to get them to be honest about their credit story before you send them to multiple lenders. You can best advise them who to talk to about their desires and concerns.

Ideally, you would have many lenders to meet client's communications style and financial needs. Knowing the client's priorities and needs will help you to best prepare and match them with a preferred lender, and your time in each transaction. Ask questions first and answer questions next is a great way to understand your client. If you are looking to develop a relationship with a lender that is great at identifying a client's concerns and needs immediately, I'd love to be that lender for you. Please reach out to me via my website at www.lendingbliss.com or directly at 704-241-5135

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Written by Bliss Green