Predictive Cash-out Scenario - MBai152 - Script & Playbook

The homeowner has had a run-up in revolving debt utilization in the past 6 months. This is often followed by a need to tap into equity through a cash-out in the next 90 days.

Alert Background: 

This contact meets the minimum credit criteria set by your organization. In the past six months, there has been an increase in their revolving credit utilization. This may show a need to tap into equity to consolidate debts. Increasing revolving debts means increasing revolving payments, which the borrower has probably started to feel. This doesn't always mean they are in financial distress. Perhaps they have decided to make home improvements and are using their revolving credit lines. Either way, you don't need to bring up the increase in revolving debt balances; keep this in the back of your mind when you are talking with the borrower. You have a new conversation if they say they have been thinking about selling! Listings are your friend and will help you make friends with your referral partners.  

Script Example:

This script is one example; feel free to make it your own and communicate the message in your own words. 

"Hi (First Name),

It's (Your Name) from (Your Company)." 

Make the Connection: At this point, you want to remind them of how you know each other. This will change the tone of the conversation from a cold call to a warm call. For example, if you helped them with financing to buy a home two years ago, bring that up. If this is a contact that an agent provided to you, let the client know the connection, for example:

"We worked together a couple of years ago to purchase your home..."

OR 

"I work closely with (Agent Name)'s clients..."

OR

"We live in the same neighborhood..."  (you get the picture, right?)

Now that the conversation has relevance, it's time to start talking about them...

"You may have seen the letter or email from me recently; my system periodically reaches out to clients that may benefit from adjusting loan terms, and your name popped up, so I thought I would give you a quick call. Do you have any mortgage or equity-related questions I could answer for you?"

Let them talk, and ask follow-up questions that will get them talking about their plans, for example... 

"Are you planning on staying in your home for the foreseeable future?"

"Have you considered a cash-out refinance to pay off credit cards or make home improvements?"

Give Value: Let the conversation continue from here, with you asking questions about them. Then, let them tell you how you could help them. All you are looking for in the initial call is whether they are interested in chatting about the mortgage and debt strategy. The more value you can give, in the form of insight or answering questions, the more likely they will open up and have a meaningful discussion.  

Differentiate Yourself:  Tell them how unique you are compared to other lenders and why you like helping clients save long-term money. Let them know that your company specializes in VA loans as well.

Possible Next Steps:

The homeowner is interested in refinancing in the next 1-3 months:

• Answer any questions they have and tell them you will put together a comparison. 
• Ask them if there are any credit cards or other debts that they would like to pay off and eliminate the monthly payment. 
• Send them a follow-up email so they have your contact info on hand.
• Ask them their preferred communication channel: phone, text, or email. 
• Keep in touch often through the process.

The homeowner isn't quite ready but is considering selling in the next 12 months: 

• Answer any questions they have and tell them you will follow up and help them get pre-qualified before their house goes on the market. For example, ask when would be an excellent time to get them a pre-qualification letter.
• If they don't already have a listing agent, ask them if it's ok if you introduce them to a good agent you know and trust! The sooner you do this, the less likely they will find a listing agent you don't know.
• If possible, introduce the agent so the client has a warm intro and the agent knows that the referral came from you. Let the agent know they aren't ready at the moment but are considering it shortly, so you thought it would be good for them to connect.
• Keep in touch often through the process.

The homeowner isn't quite ready, but thinking about a refinance, maybe within the next 4-8 months or if rates decrease: 

• Send them an email thanking them for the time and let them know you will check in in 30 days or if rates decrease. This will ensure they have your contact info if they have any questions along the way. 
• Set reminders in your CRM to follow up with an actual check-in email or call once a month or if rates decrease.  

The homeowner isn't interested at this time:

• Send them an email thanking them for their time, and leave your contact info. 
• Add them to your value-driven nurture campaigns in your CRM. 
• Set a reminder to follow up if rates decrease.