Ask the Right Questions !
To Determine the Viability of a New Loan Request
By Dan Harkey
Introduction :
The following is an example sequence of questions that loan agents can use to obtain the information from the borrower . These are suggested , each loan agent may set up their questioning sequence , which will vary but accomplish the same result .
Conversations with borrowers may be fluid and take the loan agent into complex life stories to obtain intended information . I often pause to let them talk because I know they are upset , not about me but their life circumstances .
Borrowers love to tell you their life ’ s problems while you are attempting to obtain material facts . Compassionate listening is a natural , thoughtful , learned trait that helps develop trust and lasting relationships .
Any sales career endeavor involving products , goods , or services will have a similar best practices sequence of questioning . All salespeople should take the time to write down a sequence of questions as an effective platform for intended results . The intended outcome is to obtain the material facts , represent the customer with good intentions , explain and answer questions , determine the transaction ' s viability , and close and drive the transaction forward . Or decline the transaction if it does not fit the company ' s requirements .
Educating a client or customer is part of the job of any professional salesperson . The customer should come away with the idea that the salesperson honestly had their best interest in mind . A byproduct of this philosophy is a lasting relationship , spreading goodwill , and referrals .
Stage I : Questions as a Best Practices Platform Include :
• Loan amount , for what term ?
• First or second lien ?
• Type of property : singlefamily , owner or nonowneroccupied , commercial , apartments , industrial , occupancy , or other .
• Loan purpose : This question is paramount if the loan request is singlefamily owneroccupied . Is the use of loan proceeds primarily for business purposes ? Primarily means 51 % or more of the loan proceeds . What portion will be used for consumer purposes ?
• Where is the property located ?
• Property value . How did the borrowers determine the
• value ? A borrower ’ s estimate of value is often incorrect or intentionally exaggerated .
• Cash out requested ?
• Current total liens
• Are the liens current ? If not , how much is the arrearage and the reason ? Get the complete story in writing . Completeness may make or break your transaction . Some reasons may be rational , while others are just an attempt to conceal .
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