I keep getting the same question over the phone—what is your rate on a 30-year fixed mortgage? How do I reply in a way that will assure that I get the loan? Eddie from New Hampshire

This question goes to the crux of sales within the industry. It is so important that I may take two or three issues to answer the question—

• Telephone sales are an important factor in our industry. Everyone will have to sell over the phone at one point or another, even if the relationship starts online.
• If you are dealing with cold calls, you will find selling over the phone that much more difficult. It is difficult to develop a relationship in a five-minute conversation.
• If you choose to answer the question and do it honestly—you will typically lose the caller. That is because everyone else will be low-balling over the phone. Yet, if you low-ball to get the prospect’s attention you are setting yourself up for failure—you will never deliver more than you promised.
• If you start hitting them with qualification questions so you can give an accurate quote (such as—what is your credit score?)—you are putting them on the defensive. It is never a good idea to get personal before you have built a relationship.

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So, what do you do? You start the relationship-building process. The most important question to start with is asking the prospect how they were directed to you. If there is any basis for a relationship already, this will quickly become evident. If they say—from the yellow pages—it is a cold call. If they say they were referred from a previous customer, you can start by inquiring about their relationship with that person, because that relationship is what you have in common.

You need to follow with letting them know that you will need some information in order to best serve them and ask their permission. Too many of us just seem to start “firing away” with such questions as “purchase or refinance?” or “what is your credit score”?

The purpose of these questions is to get them comfortable talking about their needs. What they ask you for initially may have nothing to do with their needs. It is your job to attain a comfort level, get them talking and then listen. The deeper you get, the better you will be able to determine their real needs, rather than the answer to the superficial rate question.

Dave

Dave Hershman is Senior VP of Sales of Weichert Financial and the top author in the mortgage industry. Dave has published seven books, as well as hundreds of articles and is the founder of the OriginationPro Marketing System and Mortgage School – the online choice for expert