Gatineau Mortgage Brokers

5 Open-Ended Questions to Ask Your Clients

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: “How’s 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: “What’s your income like?”

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: “What kind of property do you have?”

Depending on whether it’s a new purchase or refinance, your follow-up questions should cover:

• 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: “What are 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: “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.

Register for Magenta’s back-end portal to access useful tools and forms today!

 

 

About Magenta Capital Corporation
Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, call us at 888-267-1744 or  visit www.magentacapital.ca.

How to Accelerate the Deal Submission Process

You’ve met with your client.  You’ve done a thorough job of asking open-ended questions, probing for explanations, and understanding any unique challenges of their situation.  You write up the deal, select your lender and press submit.

And then you wait…and your client waits…

Finally, your lender comes back to you with questions and you’ve got to go back to your client for more information.  Your client is starting to get impatient; they want the house and they’re anxious to get the process moving.

What’s more, you’ve got multiple deals on the go that are requiring that same back and forth.  You’re busier than ever and things are not moving forward fast enough.  You’re spinning your wheels, but you can’t find any traction.

How many times have you been in this situation?

There’s a simple solution to minimize this back and forth on the deal submission process:  call your lender BDM before you submit your deal.

By first discussing the file with your lender BDM, you will obtain key information and answers that create the most efficient path to a viable solution for your client.  Each lender has a unique posture in the marketplace, with differing requirements for credit, documentation, property types, and lending areas.

Knowing the nuances in advance will reduce the back and forth, enhancing your service levels and positioning yourself as true expert in the mortgage space.

Here are key points you’ll want to discuss with your lender BDM:

1. Communicate the areas where you think there might be hiccups.  Being transparent from the outset will allow you to share your ideas and understand what options are available, allowing you to take a consultative approach with your client.

2. Understand any potential gaps the lender might be concerned about.  You will learn of any additional information or documents your client may need to provide.  It will also prepare you to explain to the client why the additional documentation is required.

3. Outline your client’s goals and establish a clear understanding of the lending guidelines to ensure this deal is the best solution for your client (and not just the best you can do with that particular lender).

4. Ask for feedback and guidance on structuring the file.  Lender BDMs are knowledgeable and willing to help.  They also want the process to go as smoothly and efficiently as possible.

Adding a quick 5-minute phone call to your lender BDM to your sales process could save you exponentially more time!  Your efficiency and knowledge will create a strong working relationship with your clients and lead to referrals. Don’t forget that your lender may have specific platforms to help you submit your files and track their status, such as Magenta’s own broker portal. , These tools can streamline the process further and take the guesswork out of submission. Now, take all that time you’re saving and drum up new business for your pipeline!

 

 

 

About Magenta Capital Corporation
Magenta is one of Canada’s leading residential, private MICs. Since 1994, we’ve specialized in flexible mortgage solutions for Ontarians who fall just outside of bank lending criteria, while delivering on strong, consistent returns for shareholders across Canada. Our goal is to empower our customers, partners and employees to build a better tomorrow.

For more information, call us at 888-267-1744 or  visit www.magentacapital.ca.