The first-time homebuying experience is as exciting as it is nerve-racking. Buyers may ask themselves:
- Am I paying too much?
- Should I keep renting?
- Do I have a big enough down payment?
- How much is too much for a down payment?
- Can I really trust my mortgage company?
After nearly a year of working and schooling from home, the focus on personal surroundings has never been more intense. It is no wonder most houses are selling almost as fast as toilet paper.
By contrast, getting a mortgage is a lengthy and complicated process. First-time homebuyers are sometimes overwhelmed by the requirements for obtaining a home loan.
Credit unions – known for more personalized service than other types of financial institutions – are especially well-suited to help alleviate their anxiety. You can strengthen member relationships by offering best-in-class home buying solutions and thoughtfully guiding buyers through every step of these life-changing transactions.
Here are a few things to consider as your organization works to attract first-time homebuyers:
PERSONAL CARE & COMMUNICATION
The same criterion that drives most members to credit unions for their banking business in the first place– trust – also is of the utmost concern when they choose a lender. First-time homebuyers need someone they can rely on to help them through one of the most important purchases of their lives. Their own credit union already understands their financial situation and is uniquely qualified to match them to a mortgage product that fits their specific needs.
Credit unions are perfectly positioned to provide peace of mind to their first-time home buying members. You already know their goals and their names, so you can offer the kind of personalized service that no one else can.
From pre-approval to closing, members must gather personal finance information while juggling appraisals, inspections and, worst of all, packing. It is a lot. They need answers, access and reliability.
Since you have already established trust with your members, leverage touchpoints like social media channels, email communications and virtual home buying events to help them manage this hectic, but exciting time.
GOVERNMENT ASSISTANCE PROGRAMS
Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA) home loan programs make it easier than ever for people to purchase their first home. In fact, 40% of first-time home buyers utilize these government-backed programs for their purchases, and 75% of FHA loans go to first-time homebuyers.
Credit unions that offer these programs are obviously better positioned to support any first-time homebuyers within their member ranks.
While forecasts for 2021 show that refinances are expected to slow somewhat , the market for home purchases should continue to grow. While limited inventory seems to be holding prices high, interest rates – which are expected to stay very low – are still engaging buyers.
To bring your members home in 2021, here are three quick tips:
- Make sure members know you offer mortgage products. Whatever your best method of communicating with members is, use it. If you have the analytics available to target those looking for a mortgage loan, that’s even better.
- Partner with realtors in your area. Many first-time homebuyers engage lenders recommended by their realtors.
- Offer thought leadership and educational content to your members. Helping them understand the process better and providing related resources builds critical trust and awareness of the services you offer.
Comprehensive mortgage solutions are effective tools you can use to strengthen your relationships and your business.
But, running a profitable, in-house mortgage operation can be daunting. Many credit unions turn to a service organization like TruHome Solutions for help. We provide all of the resources you need to help bring your members home. We are here for you, so you can be there for them.