Sales In Home

Sales In Home

A reverse Mortgage loan originator should know the most common objections prospects have concerning a reverse mortgage. The reverse mortgage product sells itself. What you are selling is your ability to serve the client. That’s what they’re deciding to buy from you and that’s why the package you prepare for them must reflect who you are and how well you can serve their needs.

With that said, the first thing you should do in preparing for an appointment with a client is make sure you organize the client’s application package nicely. The package should include folders with copies of the application to sign and leave, reverse mortgage information to leave behind, and required documentation by HUD and the Federal Housing Authority. While we haven’t seen a big impact on sales when it comes to using more expensive packaging compared to cheaper paper folders, slick plastic binders leave a more professional impression and tend to stay with the client longer.

An obviously valuable component of the package is your contact information. One thing we’ve found to be quite effective is a magnet card that the client keeps on their fridge. Produced in fairly large quantities and a classier touch than a sticky note with your name and number, we leave a magnet with each client. We also include emergency numbers on the magnet along with our contact information so it becomes useful and let’s them know that we’re there for them and available.

Your bag is the closest thing to an office your client will see—it reflects who you are and how you do business—so make sure it is packed in a neat, organized way. Include enough pens for everyone. We always suggest using a laptop. A laptop conveys a professional demeanor and instills confidence and comfort in your clients. Some may argue that it could be overwhelming for seniors, but we’ve found it gives the impression that we know what we’re doing, and in today’s marketplace it is a vital tool. Along with your laptop, which will hold your PowerPoint presentation, include current rate sheets and a small digital scanner. We’ve found a digital scanner to be very effective on appointments as a clean and easy way to scan important documents such as driver's licenses, social security cards, property tax bills, homeowners insurance, and loan statements. We buy the Visioneer Roadwarrior for each salesperson as soon as they come on board. It’s an amazing tool and a fun conversation piece as well.

Again, being prepared with a neatly organized bag and application package is crucial in making a professional impression and gaining the confidence of your clients. It conveys how you conduct business and will go a long way in winning business.

The Application Process

At this point in the appointment, the reverse mortgage and how it will meet their needs has been explained to the client. It is now time to pose this three-tiered question to them:

“Mr. and Mrs. Client, if it’s okay with you, what I’d like to do is go to your kitchen table and sit down and go over the presentation for the reverse mortgage product. I’ll show you the good, the bad, and the ugly aspects of the product and turn you into a reverse mortgage expert. If at that time you still have an interest in the program, then we’ll go over what you qualify for, show you exactly what it’ll do for you and what the costs are so you know exactly where you stand. Then if you still have an interest, we’ll go over the application, sign you up for HUD counseling, and we’ll take the next step. Is that okay with you, Mr. and Mrs. Client?”

And I stop right there and wait for the answer.

It is crucial to stop right there and wait and listen. This is one time that every sales-training I’ve ever been to has been right on: whoever talks next loses. If there are any objections they are going to come up now. If you wait to get to that kitchen table, it’s too late. Answer those objections in the living room. Perhaps you didn’t listen or explain yourself properly. If you did a good job of warming them up, asking questions about their finances and family, and finding a way to solve their problems, then you won’t get no for an answer.

It’s important to note that this program won’t fit everyone’s needs. If you get into the living room and realize they don’t need a reverse mortgage, then don’t go to the kitchen table. Leave your card and tell them they don’t need one right now, that it can’t solve their problems at this time.

So, you have heard the magic answer: “Yes, come to my kitchen table.” Now it’s time to plug in your laptop and scanner and set out your application packages. It’s important to work in a clean, uncluttered area so if there are things that need to be removed from the table, kindly ask the client if he or she wouldn’t mind clearing it. We’ve never had a problem asking anyone to straighten up for us.

Now it’s time to go over the PowerPoint presentation. After you go over the presentation, take them through the Good Faith Estimate, which breaks down what they qualify for and the costs. Don’t ever sugarcoat anything. Explain the origination fee. We don’t discount our fee; we work hard at what we do and believe our work should not be discounted. Then ask if they have any other questions about the application. At this point, go right into the application. Remember, we’ve already gotten permission to go over the application when we asked the three-tiered question. In answering yes to the original question, your client answered yes to filling out the application.

After the application is filled out, I typically spend another 15 minutes with the client getting to know them better and determining what their schedule looks like. This way I get a good reading on when is the best time to contact them. I find out what the next two months looks like as well, if they’re going to take any trips, go out of town, etc. Then I ask if I can place my magnet on their fridge. If I don’t see any on the front, I place it on the side, or perhaps they don’t want one. Then I say my goodbyes and head back to the office to submit the file.


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