Client Interviewing tips
Starting out as a new Mortgage Agent, there is a lot of new information to take in and new processes to get used to. Learning how to conduct a thorough client interview and take a proper application is key to hitting the ground running. Successful Mortgage Agents provide full, detailed applications and clearly demonstrate that they know their client.
How do you do that effectively?
Ask ‘open-ended’ questions. Then listen, and take notes.
Here are 5 basic questions to ask your client to help you gather the information you need:
Question 1: “Tell me about your credit history.”
Your follow-up questions should cover:
- How long they have had credit
- How they pay their credit, i.e. paying minimum payment or full balances
- Whether they have missed payments
- If they have co-signed any loans
- If they have had any collections, judgments, support payments, bankruptcies
- Whether they have filed/paid their income taxes and are they up to date on property taxes
Question 2: “Tell me about your income.”
Your follow-up questions should cover:
- All sources of income
- If they are self employed, how the business is set up, i.e. sole proprietorship or incorporated
- How long have they been at their current and previous jobs
- How stable and consistent is their income
Question 3: “Tell me about your property.”
Depending on whether it’s a new purchase or refinance, your follow-up questions should cover:
- What type of property is it, i.e. owner occupied, rental, mixed use
- How long have they lived there
- Any improvements they have done or improvements needed
- Unique features of the home
- Known negatives, e.g. previous fire or flood damage
Question 4: “Tell me about your future plans and goals.”
Your follow-up questions should cover:
- How long they intend to stay in their home
- Whether they expect lump sums of income, e.g. work bonuses, inheritance
- Any anticipated job changes
- Expected changes to family, e.g. newborn children or college costs
Question 5: “Tell me what’s important to you about your mortgage.”
Your follow-up questions should cover whether their priorities include:
- Flexible payment options
- Prepayment penalties
- Portable/assumable
- Lowest payment vs quickest payoff
An effective Mortgage Agent will take the time to have a thorough conversation with their clients, personalize the experience by asking the right questions, and then listen. Once you have a complete picture of your client’s situation, you can readily place them with the lender with whom they have the best fit.
