Qualifying in sales process for purchasing

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what is going on everyone in today's video i want to share with you the process that i use for pre-qualifying buyers so if you have been dealing with buyers and you feel that they have been wasting your time you don't know why they're not submitting their documents when they tell you that they're motivated well in this video i'm going to go over exactly what you need to be asking to set yourself up for success the last video that i posted i talked about setting expectations with your clients whether you're working with buyers and sellers and a lot of you asked how do you pre-qualified buyers so let's get started so let's say you have someone that reaches out to you and they tell you that they're interested in buying the very first thing that you want to do is kind of feel them out to see what their motivation is and if they're actually serious about purchasing a home now i know that there has been a lot of uncertainty in the air interest rates have gone up uh the real estate market was crazy last year and for the past two three years where there was little inventory and buyers were getting outbid but this video obviously is just a general video if you're working with buyers so obviously figure out what their motivation is because what happens a lot of times is that buyers will tell you that they're interested in purchasing a home because maybe they no longer want to rent and once you start having the conversation of the next steps to get the ball rolling and getting connected with the lender if they're gonna get financing what ends up happening is that it's almost like they get cold feet now they start ghosting you they never answer your phone calls maybe you refer them to your lender and then the lender can't get a hold of them and it just becomes the same where you're chasing someone where you don't even know if they're going to convert you may think that they're a lead and you're eventually going to get a paycheck once you get them under contract but you can't even get to that point because they don't even get the process started so what are some of the questions that i ask when i'm pre-qualifying these buyers the very first thing is that i do like to have a conversation with them over the phone or in person whatever they prefer or maybe even over zoom or facetime it doesn't matter i want to get them on the phone and i want to ask as many questions in terms of what they're looking for just so that i can get an idea as to whether or not they're realistic and their expectations and what the reality of the current market is along with that the next couple things that i'm going to mention are extremely important and for the most part these are questions that a lender would ask now the reason that i asked this is because a while back when i was brand new i remember getting these buyer leads and i would think that they were buyer leads and i would send them over to the lender and then the lender would tell me that unfortunately these people were not qualified to purchase a home so some of the questions that i ask are regarding their income if they are self-employed or if they are a wage earner because this is going to be a big difference in their pre-qualification amount along with that i confirmed that they have been doing their taxes and they have filed their taxes for the past two years i also want to know how much money they have saved for a down payment a very popular thing that a lot of first-time buyers ask are regarding down payment assistance programs now there are down payment assistance programs out there however many programs have different requirements depending on what you do where your work your income your family size and a bunch of things so i like to tell buyers that again these down payment assistance programs vary case by case but we can definitely take a look at that but of course just like i said a couple minutes ago i want to find out if they have any money save for a down payment because let's say for example they do not qualify for any down payment assistance programs do they have money to put a down payment a deposit and closing costs i'd like to run these scenarios by these buyers so that they can get an idea as to what to expect so like i said i want to find out how much money they have do they have money saved how many people are going to get qualified together if it's a couple if it's just one person if they are going to bring in maybe mom and dad or another family member obviously the more incomes combined will help to get a larger purchase price however there are still a lot of different things involved when getting approved like the credit score any debts that they have and obviously those are things that a lender goes over but again i'm just asking a lot of questions just to make sure that these potential buyers are going to actually be able to purchase a home when they send them to the lender they're going to gather their documents so once i kind of gather that information regarding the income who's getting qualified what they're looking for i let them know exactly all of the documents needed to get the approval process started which includes tax returns pay stubs w2s or 1099 profit and loss statements if they are self-employed and all of these documents are things that you can ask your preferred lender as to what kind of stuff they require from a buyer that way when you're having these conversations with these buyer leads you can already give them a heads up as to what documents they need to gather what i like to do also is that i have a little graphic i have a picture that i created on canva and i send them a picture of that once we have wrapped up our phone conversation so i have verbally told them the documents that they need and i tell them right now once we hang up i'm going to shoot you a text message again with a list of documents and i'm also going to send you an email so that you have all of this the next step that i do is that i ask them if they possibly have all of this or how long it'll take them to gather everything so let's say that i'm talking to them on a tuesday i asked them you know how long is it going to take you to maybe possibly get everything together they might say a couple of days so i tell them you know what today's tuesday let me check back with you on friday to see if you have everything and in the meantime you can gather all of that and i can also connect you with my lender that can ask you more information and go over different scenarios based on what it is that you're looking to do so again that is how i set up my buyers and when i put them on the spot and i tell them what they need to gather and i get a commitment from them us as to when they're gonna gather everything then i know that they are serious about purchasing if they have any specific financing questions of course that i leave it to the lender i don't like to answer any questions regarding numbers because again you know there's so many different things involved regarding their credit and the debt that they have in order to even determine how much they're going to be able to qualify for but if somebody asks me those questions i tell them you know what the next step is for you to gather all of your documents so that the lender can really review all of your finances to give you the most accurate information based on your specific scenario so that's kind of what i do i wanted to share that with you in case you are newer in the business or you have just been struggling with buyer leads or these buyers that tell you that they're interested but somehow don't end up working out or they just end up ghosting you or the lender try asking a lot of those questions and setting yourself up for success and also setting them up to talk to the lender and submit their documents if you enjoyed this video make sure you give it a thumbs up share it with someone else and i'll see you guys on the next one