Predictive Debt Consolidation Scenario - MBai155 - Script & Playbook

VA loan and open HELOC with balance. 100% cash-out to consolidate my be beneficial.

Alert Background: 

This contact meets the minimum credit criteria set by your organization. The underlying primary mortgage is a VA loan, which appears to have a home equity line. The HELOC may have been faster and easier than a full cash-out refinance, or they didn't know they could do a 100% cash-out. Quite often, this scenario results in a cash-out refinance. For example, say the borrower did a HELOC to make some home improvements. Now they have more equity and time to consider a cash-out to pay off a higher rate HELOC. Another scenario is that the borrower did a HELOC to make home improvements before listing their home. Don't forget to ask if they are considering selling in the coming months.  

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) from (Your Company)." 

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 served together in the army..."  (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 benefit from adjusting loan terms, and your name popped up, so I thought I would give you a quick call. I see you may have an open HELOC?"

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

"What made you pull the trigger on a HELOC vs. a 100% cash-out?"

"Would you like me to put together a comparison to see if it's beneficial to consolidate that HELOC now?"

"Are you planning on staying in your home for some time, or do you have any plans to sell anytime soon? This is important because a refinance before selling wouldn't be worth the fees.."

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 interest in comparing their current terms to new possible terms. 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:  Tell them how unique you are compared to other lenders and why you like helping clients save long-term money. Let them know that your company specializes in VA loans as well.

Possible Next Steps:

The homeowner is interested in refinancing in the next 1-3 months:

  • Answer any questions they have and tell them you will put together a comparison. 
  • Send them a follow-up email so they have your contact info on hand.
  • Ask them their preferred communication channel: phone, text, or email. 
  • Keep in touch often through the process.

The homeowner isn't quite ready but is considering selling in the next 4-8 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 quite ready but thinking about refinancing, maybe within the next 4-8 months or if rates decrease: 

  • Send them an email thanking them for the time and let them know you will check in in 30 days or if rates decrease. This will ensure they have your contact info if they have any questions along the way. 
  • Set reminders in your CRM to follow up with an actual check-in email or call once a month or if rates decrease.  

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.