4 Things First-Time Buyers Look for in a Mortgage Loan Officer
July 11, 2019 |
Thirty-three percent of all people who purchased a home in the United States in 2018 were first-time buyers (according to Statista), and many of these used a mortgage loan officer to finance their move. If you work in the mortgage or financial services industries, it is important to know what first-timers look for when applying for finance. This can help you generate more customers and revenue in the future.
1. First-Timers Search for Mortgage Loan Officers Who Take Their Credit Scores into Consideration
First-timers are unlikely to have many financial assets – this is their first home, after all – and their credit score will reflect this fact. As a result, they search for mortgage loan officers who will take their less-than-perfect credit histories into consideration.
Appealing to first-time buyers can be tricky. Many of them think that they don’t have the credit-worthiness to finance a property and might be reluctant to approach you. However, you can target these customers by advertising the fact that you offer loans to first-time buyers on your website and social media pages.
2. First-Timers Look for Mortgage Loan Officers They Can Trust
Mortgage loan officers can offer first-time buyers the best interest rates on the market and find personalized financial products that suit their lifestyle and budget. However, many first-timers stick with their banks when applying for finance. It seems they are wary to use an independent loan officer.
You need to convince them otherwise. Increase trust by listing all of your credentials on your website. If you are a member of the Mortgage Bankers Association, for example, include this in your online and offline literature.
Don’t forget to include your educational history and other achievements on your website, too. If you have recently undertaken continuing education, for example, tell the world about it. You could increase customers as a result.
3. First-Timers Value Honesty
When it comes to home loans, first-time buyers value honesty and transparency. These customers don’t care for the small print — they want to know all about your interest rates and terms from the offset.
First-time buyers tend to be millennials, and research shows this demographic wants to know the truth. If interest rates on a fixed-term mortgage increase after six months, tell first-timers about the price increase face-to-face. If customers can’t afford a mortgage, just be honest.
Sometimes, it can be difficult to tell people the truth, especially if you have sales targets to meet. However, being completely truthful about the financial products you offer could increase trust and encourage more first-time buyers to work with you.
4. First-Timers Prefer Face-to-Face Communication
Again, first-time buyers tend to be young, and this demographic favors face-to-face communication over phone calls and emails. Meeting with prospective customers in person will boost engagement and allow you to discuss their financial options properly.
Face-to-face communication also facilitates an open discussion about a customer’s finances and credit history, so you find mortgage loans based on their personal circumstances.
With so much competition in the financial services sector, appealing to first-time buyers can be a challenge. Follow the four tips above, however, and you can turn more leads into bonafide customers.