How to Close a Tough Sale

Are you having trouble closing a tough sale? There is one important thing you need to remember. Trust. Building trust with a client the most important aspect within any real estate transaction. To complete any deal with a home buyer or a seller, you will want to gain their trust by alleviating clients' three biggest fears.  Here are some important tips that will help you alleviate your customer’s biggest fears.

Fear #1: The Customer Won't Get Exactly What They Want

Possibly, your potential customer has had a bad experience with a past contractor or they have most likely heard stories from other people who have heard bad experiences. If someone wanted his/her bathroom remodeled and their contractor attempted to up sell an addition with two bathrooms, a laundry room and a kitchen. Or a contractor left the project halfway, he wasn’t listening or serving the customer. When you get to your potential customer’s home you should question them on exactly what they want. Actively listen to your customer repeat what they said to ensure that you are on the same page. Then prioritize on what they want.

Fear #2: The Customer Won't Get a Fair Price

Possibly, you understand the fear of unfair price and you can eliminate it by following a few steps. You can work with your customer to prepare a budget and then provide a price that falls within that range. By doing this you will have alleviated potential concerns that the price you have offered is too high and you will have alleviated price as a major concern in the project. Help your customer determine the amount they are willing to spend on the project and help them select the materials that will remain within that budget. If the customers are making selections which will affect their budgets, you should tell them. By doing this, you will eliminate any price fears.

Fear #3: The Contractor May Not Complete The Project In Time

When discussing the timeline for a project with your customer, you should discus on how soon you can be able to start, the amount of time the entire project will take, and how some issues may affect that project. Ask your customer whether they have a particular date in mind and if their expectations are not realistic, you should help them come up with a sensible timeline. And to reinforce your customer’s trust, you should stick to your promises. Ensure that you are returning phone calls on the same day.

What Is A Jumbo Loan?

Jumbo loans are mortgages that exceed $417,000 which is the traditional mortgage limit, also known as the conforming loan, for single-family mortgages. The conforming loan limit is the maximum amount that will be backed by Fannie Mae or Freddie Mac. However, the real estate market is not the same in every city, so in some places the jumbo loan threshold is higher. For example, in Alaska and Hawaii the conforming loan maximum is $625,000, so jumbo loans would be made for a larger amount. Jumbo loans are used to purchase higher priced homes.

Qualifying For a Jumbo Loan

It is not easy to qualify for a jumbo loan even if you have $1 million in liquid assets. Qualifying for a traditional mortgage loan means jumping through several hoops, and there may be more hoops to jump through for a jumbo loan. You will need to have all of the documents that will support your income from all sources. Tax returns and bank statements will also be required. It is nearly mandatory that you have at least six months of cash that could be used to make the payments on the jumbo loan. This requirement could be stricter if you work for yourself.

Your debt-to-income ratio must be below 36% if you are applying for a traditional mortgage loan. This ratio is calculated by dividing the total monthly debt payments by your monthly income. Jumbo loan applicants will need a significantly lower debt-to-income ratio. The ratio requirement may vary between jumbo loan lenders. However, it will not be as high as 36%.

An excellent credit score is essential when applying for a jumbo loan. Most jumbo loan lenders look for a credit score of at least 700. Keep in mind that credit scores are created by a variety of credit bureaus and by the independent FAIR ISSAC score organization.

Favorable Interest Rates are Available For Jumbo Loans

As recently as 2008, jumbo loans were not available, and if they were, the interest was higher than for traditional mortgage loans. However, borrowers looking for jumbo loans today will find that interest rates are slightly lower. The reason is people who apply for jumbo loans are viewed as less likely to default on the mortgage or fail to make payments on time. Many applicants are high-income earners with substantial assets. They are also considered to be financially stable through any economic downturn.

As with any mortgage, it pays to shop for the best jumbo loan deal. Jumbo loans come in a variety of adjustable and fixed interest rates. You might find investors among the secondary mortgage market.

Look at your finances carefully. Find the best jumbo lender for your needs. Be sure that you can make the long-term commitment to making the mortgage payment along with the high taxes and property insurance.