Monday, 24 March 2008
In any sales position, objections are the roadblock to making the sale. And, in order to succeed, you must find a way to overcome and satisfy the prospect. In the mortgage industry, we face a unique challenge—getting the customer to “believe” us, and not the other loan officer/broker (who may just be stretching the truth to get a sale, and may never deliver as promised). Gaining commitment early-on is what I teach in my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com/ But, getting the customer to trust you over somebody else, is not an easy task. Here are some of the most common objections I hear, the reasons behind them, and what I say to put the borrower at ease. Even when I think I’ve heard them all, people surprise me! 1. Not ready to do anything yet. This means that the prospect doesn’t fully trust you, or that you haven’t fully uncovered what their true motivations are. Creating urgency is an absolute must. Here are some things I say: When do you think you will be ready to make a decision? What day this week can I expect to hear back from you? As you know the interest rates change everyday, this is the best deal that I see as of today. If I see anything else, I will let you know, but remember we could lose this rate. What other information do you need before you can decide? 2. Interest rate not low enough. This means that the prospect doesn’t see the value of the transaction or that they are simply wanting a rate that isn’t available given their situation. Here are some things that I say: What rate are you looking for? How much more would you like to save per month? What is your motivation for doing the transaction? I understand that you don’t think the rate is low enough, but if I could show you a way that you would still benefit, would that be of interest to you? 3. Still want to look around. This means that the prospect isn’t satisfied that they are getting the best deal available in the marketplace. Here are some things that I say: How many other lenders or brokers have you spoken to? What rates/closing costs did they offer you? I want you as a client, what would it take to make you satisfied to do business with me? If I spend some more time, and can get you a better deal, would you be willing to give me a day or two before you make a final decision? There are many thousands of lenders and rates available, we deal with about 300 of them, this was the best deal I saw we can offer you as of today. 4. Don’t want to go through all the hassle. This means that the prospect still doesn’t see the benefit or is lazy and unorganized. Here are some things that I say: Don’t worry; we handle all of the paperwork and the loan process. All you have to do is gather a few documents that prove your income and assets and we will do the rest. The process is quick, easy, and pain-free. At closing, you simply have to sign your name, and you will (save X amount per month, or in interest over the life of the loan, or etc.). When do you think you can get these papers to us by? O.K., I will be sure to look for them on that day and will call you if I don’t see them. 5. I have to talk to my (husband or wife)./My (husband or wife) doesn’t want to do it or hasn’t made a decision. This means that the prospect isn’t the decision-maker or is simply trying to pass the buck. Here are some things that I say: Would you prefer it if I spoke to your (husband or wife) for you and explained what it is you are considering? When do you think you can speak to them by? Please give them my phone number and have them call me if they have any questions. How long will it take for you both to make a decision? 6. I can’t find all the paperwork./Why do you need all this? This means that the prospect doesn’t have everything in one place, is unorganized, or just making an excuse. Here are some things that I say: We only ask for documents that we need. I don’t like to collect more paperwork than is absolutely necessary as it clutters-up the loan process. The underwriter is asking for it, so when do you think you can get these documents to us by? Here is my fax number. If you don’t have or can’t find your statements, go back to your financial institution or bank and have them simply print one out for you. (By the way, my system at http://www.loanclosingsystem.com/ tells you exactly what documents to ask for upfront from the customer). 7. I found a better deal elsewhere. This means that the prospect is still “shopping” you. This is the most common objection I hear. Here are some things that I say: Mr. (prospect), I know you may think you have found a better deal elsewhere, but did you review carefully what they offered? How do you know you can get that rate (given your financial situation)? Are they simply trying to bait and switch you? Mr. (prospect), did you know that if you are buying a house, and you switch lenders when too far into the process, you risk losing the whole deal, don’t you? You don’t want to do that. Do you have a lock-in confirmation or a GFE (Good Faith Estimate) you can send me? Maybe I can beat their offer? I want to make sure you get the best deal you can get. 8. I ‘m not saving enough./I don’t see the benefit of this. This means that the prospect doesn’t think that $50 or $100 or more saved per month is worth the trouble. Here are some things that I say: Your monthly savings of X, is a night out with your family, money saved, a potential vacation fund, etc. In addition to the monthly savings, you are also saving X thousands of dollars over the life of the loan and X amount in additional interest payments. Although you aren’t saving a whole lot, remember you are cutting X years off the life of your loan and the savings to you will be X. 9. Closing costs are too high. This means that the prospect isn’t fully educated on what closing costs comprise of or wants a no-closing-cost loan. Here are some things that I say: Did you know that if you pay the closing costs on your loan, you may be able to get a lower rate? Do you know what all of the closing costs mean and are comprised of? How much did you pay on your last refinance or home purchase transaction? What part of the closing costs do you feel are too high? We showed you some ways of saving on closing costs, was that of value to you? Did anyone else do this? Are they telling you all the facts? If we could offer you reduced closing costs, or even no closing costs, and still get you a decent rate, would you reconsider our offer? The important thing to remember about objections is that they signal that a prospect hasn’t fully been sold, or that a borrower isn’t completely on board. By uncovering objections early, eliminating them, and continuing to build trust, you will close more loans in less time and make more money. Use my examples above and you will get more loans to the closing table. Use my Sink or Swim Loan Closing System at http://www.loanclosingsystem.com/ and your income will skyrocket!