Remember the last time you told prospective borrowers the bad news that they did not qualify for a mortgage? Well, guess what? That “turndown” you sent on their way
contacted one of your competitors, who gave them
some helpful information about where they could get
The borrowers you rejected appreciated the help
from your competitor so much they went back to
that originator three months later, after improving
their credit, and closed a loan. Your competitor just
made a commission you could have made, but you
didn’t have the foresight to help that client. Instead,
you turned them away. Time to wake up. You just
spent your marketing funds to help a competitor
close a loan.
The preceding is just a hypothetical example, but
such scenarios play out in the real business world
daily. Are you turning potential borrowers away
without giving them a chance to become future
and repeat clients who most likely will refer family
and friends? Do not turn them away and leave those
potential borrowers discouraged and frustrated at the
Many potential borrowers consider a rejection as
a brick wall they never want to encounter again. You
are doing yourself, your company and your clients a
disservice if you don’t at least try to help all potential
borrowers. You will close more loans when you offer
solutions and resources to help potential borrowers.
Have a plan
If you are tired of a large percentage of your prospects
being unqualified for a mortgage loan after spending
time and money marketing to them, you need to think
about putting those unqualified prospects on the right
track to become highly qualified applicants. Educating
prospective borrowers is a win-win for everyone.
Building credit power to qualify for a mortgage loan
is not a lesson taught in schools. We just expect people
to know how to work on their credit to qualify for a
mortgage loan. It’s time to stop keeping it a secret. We
need to educate our prospective borrowers on what
they need to do and work toward in order to position
themselves for a mortgage.
Sharing ideas and solutions is always a better approach. Take a few minutes to extend a helping hand
and send a potential borrower in the right direction.
Many people have lost their homes or have credit
issues. These issues can be fixed, changing turndowns
into potential future borrowers. This may not happen
within the next 30, 60 or 90 days, but it is attainable in
the near future.
In addition, it pays to help educate real estate agents
to not turn away potential buyers who say they are not
currently pre-approved for a mortgage. Prepare a plan
to educate potential borrowers and do what you can
to encourage and guide them to becoming highly
If you have a tree full of green peaches; some will ripen
sooner than others. Do not reject the green peaches
among borrowers as a mortgage originator. Leave
them on the tree and take care of them until they
become sweet and juicy.
You are marketing to attract a specific demographic.
Unfortunately, they just aren’t all qualified on day
n Offer free seminars on “How to Qualify for a
Mortgage Loan” or “How to raise your credit score.”
n Share links to free resources on your website and
in your social media posts.
n Offer a free consultation to soften the fear of
applying for a mortgage loan.
n Offer a check-off list of information for filling out
a standard 1003 mortgage application.
Alexis Stuart, known as the credit whisperer, is a real estate
broker and founder of Credit Power Educational Foundation
Inc., a nonprofit corporation dedicated to educating the
public on building credit power and buying power.
She also is author of “Unlock the Secrets to Credit Power!”;
“What is your American Dream?”; and “Home Sweet Loan.”
For more information, visit creditpower4all.org.
Reach Stuart at email@example.com.
Transform Turndowns into Done Deals
Educating unqualified borrowers can increase your closings
By Alexis Stuart
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