Can you imagine saying to a client, “Are you good enough to own this house?” I doubt it. Sane people don’t use this language. Many of us, however, do something almost as thoughtless every day. I hear agents ask, “Are you approved for a loan?”
No one wants to ask for ‘approval’.
Every buyer will either put down a pile of cash or get a loan to purchase a new home, often both. The point is, buyers have a lot of mortgage options. When you have options, you need a STRATEGY. Everyone wants a great strategy; a strategy is something adults have. Drop the word approval from your vocabulary, use this script, “Are you comfortable your financing strategy meets your long-term goals?” If they aren’t, you fix it.
Send your clients to your lender. Give them great questions to ask their (your) lender. If you don’t know what questions to ask, or documents they need to take, ask your lender. When they are comfortable with the mortgage process, with their personal home purchase strategy, they will make decisions quicker.
If your buyers already have a lender, suggest they get a second opinion from your lender. The script for this is: “I’m glad you have planned ahead and have spoken with a lender. And I’m going to recommend you run your home purchase strategy by my lender to make sure it meets your long-term goals.” The point here is that many lenders will promise clients the moon and not come through when the house is under contract. This is especially true of some online lenders.
No adult wants to ask for approval, all adults understand the necessity of having a great strategy, and buyers can’t decide on a new home until they understand how they will pay for it.