Don’t waste your time on unqualified prospects!

The easiest lead to sell is when someone has been told no by everyone else… but you get to say yes.

Credit denials are one of the most promising leads and the easiest alert to act on.

Imagine the following scenario:

• Your contact applied for a mortgage and got rejected for their credit for being too low. They did the work to pull their credit score up and waited the required amount of time, but what comes next? MonitorBase will alert you that their credit has improved and can reach out with the easiest pitch: they need a mortgage, they now qualify and you reached out first, you close the deal. 

What is a Credit Migration Alert?

• A Credit Migration Alert is when a contact in your database has moved from non-qualifying credit status to qualifying credit status. 

How does this alert get triggered?

• If your contact has improved their credit in the last 30 days and now meets the minimum credit criteria set by your organization. 
• If their credit score has improved, but they don’t have any open mortgage reported on their credit. This example means the contact is likely a first-time homebuyer. 
• The contact previously filed for bankruptcy and has waited 24 months or they experienced a foreclosure and have waited 36 months. 
• The contact experienced some other delays, such as a 30-day late, but their credit has recovered. 

Most lenders will turn down a client if they don’t credit qualify and never reach out and follow through down the road when they do qualify. 

The best thing for you to do once you receive the Credit Migration alert is to reach out and congratulate the contact! They have done the work to improve their credit and it’s an easy way to initiate the conversation.

Not all of the people you reach out to will want or need a mortgage immediately, but they will likely need one in the future and will know to contact you when it’s time. The saying goes: it’s called fishing, not catching. There are no guarantees of success, but there is guaranteed failure if you don’t try. All of these things take time and as much as we want to rush it, it’s important to remember it’s a process of time. 

This is the easiest conversation to have because it’s based on GOOD NEWS! We have crafted a playbook and strategy that is specifically related to the Credit Migration Alerts in MonitorBase and are ready for you to use. 

Script Example:

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

Hi John, It’s William with MonitorBase. 

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 2 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 six months ago when you were looking at buying a home..."

OR 

"I work closely with (Agent Rachel’s) clients; we spoke a couple of years ago..."

OR

"We met at the home buyer seminar I held a year ago." 

You get the picture: Now the conversation has relevance and connection, so now 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 qualified clients that may be in the market, and your name popped up so I thought I would just give you a quick call and see if I could answer any housing market or any mortgage-related questions you may have.  

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

"Are you still interested in buying a home?"

"Are you still looking to tap the equity for a home improvement (or to consolidate debt)?"

"Are you still interested in refinancing to a lower rate?"

Give Value: Let the conversation continue from here, with you asking questions about them.  

Let them tell you how you could help them.  People don't want mortgages; they want homes.  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.  

Tip:  Most first-time buyers want to hear about 100% financing or down payment assistance programs.  Even if that isn't the route they take, surveys have shown that most first-time buyers assume they will buy their first home without a down payment.  

Differentiate Yourself: Talking about rates and terms can really put people on edge and make them less likely to make a decision. Use tools like MBS highway or others to help convey the value here, simple, visual, and easy to understand. Show them how you are unique compared to other lenders and why you like helping them find their dream home.  

Possible Next Steps:

Depending on which of the three scenarios turns out to be the case: 

1. They are interested now or later in moving forward but mention a REFI:
1. Get an idea of what they are trying to accomplish and stick to that subject first.  Don't go straight into taking an app.  They don't want to apply if they don't know what you can do for them.
2. If they are interested in consolidating debt, check the credit profile in MonitorBase, and you can get a good idea of their consumer debt.  
3. If they are interested in cash-out for home improvement, ask if they have an estimate for the cost of improvements so you can look up an estimated value.  
4. Keep in touch often throughout the process.  Let them know all the hurdles you are overcoming for them.
2. They are interested now or later in moving forward to PURCHASE or as a HOMESELLER:
1. Ask questions about the home they want, their area, and their dreams!  Focus on what they want first, a house, then talk about mortgage terms after.  They want to know you can get them where they want to be before they start an app and pull credit. 
2. Ask if they would like an introduction to a good agent you know and trust.  
3. If they say They aren't in the market that is just fine.
1. They are a person, there are other things you could talk about and connect on – Don’t rush off the phone or avoid conversation: connect, I promise they will be way more likely to remember. 
2. Then, thank them for their time.
3. Set a nurture campaign in your CRM of choice, doesn’t need to be every week, maybe just every few months. 

In a lot of cases, they just don’t  answer: 

1. Leave a voicemail using the above script as an outline. 
2. Send a Text, if you can, with similar messaging as the voicemail. 
3. Send a follow-up email. 
4. Set a reminder to try again in 1-2 weeks