Predictive Cash-out Scenario - MBai132 - Script & Playbook

Contact has an inquiry for a HELOC in the past 6 months. HELOC activity often leads to a cash-out refinance or a home listing.

Alert Background: 

This contact meets the minimum credit criteria set by your organization and has had their credit pulled for a Home Equity Line of Credit (HELOC) in the past six months. Whether they opened a HELOC or not, this shows intent for future mortgage activity. A HELOC is a much faster way to access equity but doesn't always have the best terms. HELOCs are generally adjustable rates and are harder to get if you have a lower credit score. We have observed a trend in credit data that a HELOC often results in either a home listing or cash-out later down the road. A cash-out refinance requires more work with an appraisal and income verification. Still, once they have tapped their equity and made home improvements, borrowers are more likely to consider the effort needed to refinance to consolidate the HELOC. A HELOC is also an easy way to tap equity to make home improvements to get top dollar when listing a home. Make sure to discuss both scenarios with the borrower.  

Script Example:

This script is one example; feel free to make it your own and communicate the message in your own words. 

"Hi (First Name),

It's (Your Name)" 

Make the Connection: At this point, you want to remind them of how you know each other. This will change the tone of the conversation from a cold call to a warm call. For example, if you helped them with financing to buy a home two years ago, bring that up. If this is a contact that an agent provided to you, let the client know the connection, for example:

"We worked together a couple of years ago to purchase your home..."


"I work closely with (Agent Name)'s clients..."


"We met at the home buyer seminar I held a year ago."  (you get the picture, right?)

Now that the conversation has relevance, it's time to start talking about them...

"You may have seen the letter or email from me recently; my system periodically reaches out to clients that may be in the market, and your name popped up, so I thought I would just give you a quick call and see if I could answer any housing market or mortgage related questions for you."

Let them talk, and ask follow-up questions that will get them talking about their plans, for example... 

"Have you considered a cash-out to consolidate higher-rate debt?"

"Have you been considering selling anytime soon?"

"Would you like me to put together a comparison for you?"

Give Value: Let the conversation continue from here, with you asking questions about them. Let them tell you how you could help them. All you are looking for in the initial call is if they have any intentions of refinancing or selling anytime soon. The more value you can give, in the form of insight or answering questions, the more likely they will open up and have a meaningful discussion.  

Differentiate Yourself: Talking about rates and terms will put them to sleep. Rates and Terms will sound very similar from one lender to the next. Tell them how unique you are compared to other lenders and focus on your programs compared to the standard products available.  

Possible Next Steps:

The homeowner is interested in a cash-out refinance:

  • Answer any questions and get them a comparison so they can easily understand the benefit.  
  • Give them an idea of their value and ask if they have made any recent home improvements.  
  • Keep in touch often through the process.

The homeowner isn't quite ready but is considering selling in the next six months: 

  • Answer any questions they have and tell them you will follow up and help them get pre-qualified before their house goes on the market. For example, ask when would be an excellent time to get them a pre-qualification letter.
  • If they don't already have a listing agent, ask them if it's ok if you introduce them to a good agent you know and trust! The sooner you do this, the less likely they will find a listing agent you don't know.
  • If possible, make an introduction to the agent so the client has a warm intro and the agent knows that the referral came from you. Let the agent know they aren't ready at the moment but are considering it shortly, so you thought it would be good for them to connect.
  • Keep in touch often through the process.

The homeowner isn't interested at this time:

  • Send them an email thanking them for their time, and leave your contact info. 
  • Add them to your value-driven nurture campaigns in your CRM. 
  • Set a reminder to follow up if rates decrease.