Welcome to Home Loan Insights, a series that delivers the latest research, trends and insights from the mortgage industry to your inbox. In this issue, we cover a few key points that should help you win more business during this time of rising interest rates.
How can I increase my home loan business?
1. Keep Borrowers In the Know
As interest rates climb, it’s critical to be a guiding light for your clients. One trick that was shared is to help them compare the interest rate on their new mortgage to other debt payments, such as car loans and student loans. This can make a big difference in how they view their interest rate.
2. Know Your Borrowers
During this time of doom-and-gloom news coverage, it’s even more important to be familiar with your borrower base and the nuances of mortgage lending. For example, many people don’t realize that the minimum credit score to qualify for a conventional mortgage is 620, or that they can purchase a home with less than 20% down thanks to government-backed mortgage programs like FHA and VA.
3. Stay On Top of Interest Rates
The good news is that mortgage rates are likely headed down again as inflation cools. Be sure to keep your borrowers informed and explain how mortgage rates are tied to inflation, and that a drop in interest rates will be a great time to buy.
4. Provide Flexibility
More than half of potential first-time buyers say flexible loan options are one of the most important factors when choosing a lender. So, be sure to let them know that they can buy a home with as little as 5% down and offer programs that help those who may need it, such as the Community Homeownership Commitment.