Financial Planning Month 2023

Previous Articles

Building Your Financial Foundation: A Roadmap for Young Aspiring Homeowners

Brian Vieaux, President & COO, FinLocker

In recognition of Financial Planning Month, I’m delving into how young adults aspiring to buy a home can approach both short and long-term financial planning.

The Starting Point: Understanding Your Financial Health
The journey to financial health and wisdom begins with knowing your current financial status. Regularly reviewing your credit score, credit report, and spending habits can give you a clearer idea of your financial health. It’s essential to know the factors that impact your credit score and confirm that the accounts listed on your credit report are correct.
Look at your monthly expenses for housing, transportation, and other necessities. Whether you’re renting, paying a mortgage, or living with your parents, understanding your housing-related expenses is key for aspiring homebuyers. Similarly, being aware of your transportation costs, such as car payments, insurance, maintenance, and fuel, is essential, particularly if you need a car to get to the office or earn your income.

Plan and Budget: Your Tools to Success
Once you have a clear understanding of your current financial situation, the next step is to create a budget and a financial action plan. Most young people starting out don’t have enough assets to attract a financial advisor, so they’re left to plan on their own or with advice from their parents. However, you can still manage and track your finances with Excel spreadsheets or free digital personal financial management tools.

I recommend linking your banking accounts, 401(k), credit cards, auto loans, and student loans in one financial app. These apps make it easy to track your spending and help you create a manageable budget based on your income and expenses. Standalone tools like FinLocker, available through mortgage companies, allow you to link all your financial accounts and create a manageable and actionable budget.

Preparing for Your Home Purchase
Once you have a budget in place, it’s time to start saving for a down payment. Setting aside $300 a month is a good starting point. Open a separate high-yield savings account for this purpose and automatically deposit a portion of each paycheck into this account. This will help you reach your goal faster and reduce the temptation to dip into these savings.

Staying Motivated and Focused
Staying on track to reaching long-term financial goals like a house down payment or a retirement fund requires motivation and focus. Keep motivated by creating reachable mini-goals that will give you encouraging short-term wins while also contributing to the long-term goal. When you hit those goals, reward yourself. For instance, if you stay under your dining out budget by $100 for the month, treat yourself with a $30 reward and stash the remaining $70 in your down payment savings account.

Identify a Financial Guru
While young aspiring homeowners may not have enough assets to attract a financial planner or advisor, seeking out a mortgage advisor can be beneficial. They can help you prepare for purchasing a home, schedule quarterly or semi-annual financial reviews, and advise whether you need to adjust your budget or timeline to reach your homeownership goal.

Remember, achieving financial goals takes time. But with the right tools, resources, and mindset, you can build a solid financial foundation for your future homeownership dreams.

Building Trust and Loyalty: The Key to Long-Term Success in Mortgage

Scott Schang, CEO, Find My Way Home.com

Almost 15 years ago, I worked with a loan officer at my company who was, hands down, one of the best “hand holders” I had ever encountered. His approach reminded me a lot of how I did business. He was a servant leader. He took his time and educated his clients, who were primarily first-time home buyers, and ensured they were financially prepared to take on a long-term expense like home ownership.

We can all rattle off the benefits of home ownership in terms of fixing your housing expense (PITI), generational, and net worth from equity compared to a renter. Still, I see very few loan officers preparing clients for the additional expenses that renters do not necessarily have to worry about every month, like fluctuating property taxes and insurance, property upkeep, and emergencies (like a broken water heater).

One piece of advice my friend would give to every first-time buyer he talked to was this, and I’m paraphrasing here:

“You’re doing the right thing by taking the first step to becoming a homeowner. And I want to make sure this is a great experience for you. Just because you qualify for a mortgage payment on paper doesn’t mean you can comfortably fit it into your ‘outside the loan application’ lifestyle. I want you to set aside what your payment would be, plus 10% for emergencies, every month for the next three months. If you can comfortably do this, you can feel confident that you can enjoy your new home and this investment into your family’s future without causing undue stress or financial hardship every month.”

This loan officer had the highest conversion, retention, and referral rates out of any of the loan officers in my company. Other loan officers would watch him take 45-minute calls with new leads and think he was crazy for investing that kind of time in something that wasn’t a “sure thing.” On the other hand, I was also a 45-minute call loan officer when I was originating, and I knew exactly what the return on that investment looked like.

In markets like today, consumers want to be educated. They want to be empowered with everything they need to make informed decisions.

The good news in a market like we’re in today is that we’ve nowhere to go but down in interest rates. So, the opportunity for a first-time buyer to reduce their financial burden in the not-so-distant future is higher than it’s been in a while. The best way to secure that refinance when rates do drop is to create a genuine relationship today.

Financial education is more than just telling someone they “qualify.” Think about taking the opportunity to really prepare them for this journey. Help them see around corners and avoid surprises. Remember, the homeownership journey is not about us closing loans; it’s about being a guide for families that are making one of the biggest decisions of their lives. By preparing your clients for homeownership in this way, you will earn more than their business. You will earn their trust, loyalty, and repeat and referral business for years to come. Mortgage transactions are a commodity. Relationships can last a lifetime.

Loan Officers: Be A Source Of Truth Amidst Social Media Noise

Doug Wilber, CEO, Denim Social

If you’ve spent any amount of time on social media, you’re aware that there’s a LOT of noise going on. In a world where anyone can be an expert, customers are left not knowing who or what to listen to. And with economic uncertainty looming ahead, there’s a greater need than ever for real experts to stand out and provide value.

Did you know that 79% of social media users look to their networks for financial advice? As a mortgage loan officer, you have the right skills, expertise, and credentials to be a source of truth for your customers, followers, and prospects.

Today, meeting customers where they are means being on social media, and people are hungry for useful knowledge that will help them make life’s most important decisions. Use that to your advantage, and start making your social media presence one that users will go back to time and time again for the right information.

To start making your content follow-worthy and focused on educating customers, you’ll need to think of ways to incorporate these best practices into your existing strategy.

Establish yourself as a professional. In an age where meeting people is often through a screen rather than in person, social media can be the new business card. Use your profile to put your credibility and skills on display.

Use reputable content sources. Not all content is created equally — as you share news, market updates, and more, make sure that the sites you are pulling from are trusted sources. Any time you share an article, it should be well-cited and accurate.

Add in thought leadership. Sharing news articles without any context is not what the people need; add in your thoughts, opinions, and analysis. Why should anyone care? What are the long-term effects? Think of how you want any financial updates to come across to your customers, and show them why you are a leader in the industry.

Stay consistent. Posting every now and then when you think about it isn’t enough to establish yourself on social media networks. Staying top of mind with your audience means being present, posting regularly, and engaging with your connections. Try setting aside a few minutes every day for learning, for posting, and for interacting. It adds up!

When people interact with you through social media, they’ll see how much reliable value your content can provide to their lives and will be more likely to trust you with their livelihoods. While the current economic climate poses many potential challenges, remember that gaining and keeping trust is the key to acquiring and retaining clients (even in tough times).

Lean on social media to tell your story, build trust, and gain more followers who could convert into new clients. Being persistent will strengthen your reputation over time – it doesn’t happen overnight, but starting today can set you up for successful relationships in the future. When customers don’t know where to go, make sure they go to you.

If you’re a loan officer or mortgage marketer and need some ideas on getting started with your social media strategy, Denim Social can help. Check out our guidebook, Driving Your Mortgage Business with Social Media here.

Building Your Financial Foundation: A Roadmap for Young Aspiring Homeowners

Michelle Young, Senior Advisor, America’s Homeowner Alliance

In celebration of Financial Planning Month, I’m delving into how young adults aspiring to buy a home can approach both short and long-term financial planning.

The Starting Point: Understanding Your Financial Health
The journey to financial health and wisdom begins with knowing your current financial status. Regularly reviewing your credit score, credit report, and spending habits can give you a clearer idea of your financial health. It’s essential to know the factors that impact your credit score and confirm that the accounts listed on your credit report are correct.
Look at your monthly expenses for housing, transportation, and other necessities. Whether you’re renting, paying a mortgage, or living with your parents, understanding your housing-related expenses is key for aspiring homebuyers. Similarly, being aware of your transportation costs, such as car payments, insurance, maintenance, and fuel, is essential, particularly if you need a car to get to the office or earn your income.

Plan and Budget: Your Tools to Success
Once you have a clear understanding of your current financial situation, the next step is to create a budget and a financial action plan. Most young people starting out don’t have enough assets to attract a financial advisor, so they’re left to plan on their own or with advice from their parents. However, you can still manage and track your finances with Excel spreadsheets or free digital personal financial management tools.

I recommend linking your banking accounts, 401(k), credit cards, auto loans, and student loans in one financial app. These apps make it easy to track your spending and help you create a manageable budget based on your income and expenses. Standalone tools like FinLocker, available through mortgage companies, allow you to link all your financial accounts and create a manageable and actionable budget.

Preparing for Your Home Purchase
Once you have a budget in place, it’s time to start saving for a down payment. Setting aside $300 a month is a good starting point. Open a separate high-yield savings account for this purpose and automatically deposit a portion of each paycheck into this account. This will help you reach your goal faster and reduce the temptation to dip into these savings.

Staying Motivated and Focused
Staying on track to reaching long-term financial goals like a house down payment or a retirement fund requires motivation and focus. Keep motivated by creating reachable mini-goals that will give you encouraging short-term wins while also contributing to the long-term goal. When you hit those goals, reward yourself. For instance, if you stay under your dining out budget by $100 for the month, treat yourself with a $30 reward and stash the remaining $70 in your down payment savings account.

Identify a Financial Guru
While young aspiring homeowners may not have enough assets to attract a financial planner or advisor, seeking out a mortgage advisor can be beneficial. They can help you prepare for purchasing a home, schedule quarterly or semi-annual financial reviews, and advise whether you need to adjust your budget or timeline to reach your homeownership goal.

Remember, achieving financial goals takes time. But with the right tools, resources, and mindset, you can build a solid financial foundation for your future homeownership dreams.

Building Trust and Loyalty: The Key to Long-Term Success in Mortgage

Ginger Bell, Founder & CEO, Edumarketing

Almost 15 years ago, I worked with a loan officer at my company who was, hands down, one of the best “hand holders” I had ever encountered. His approach reminded me a lot of how I did business. He was a servant leader. He took his time and educated his clients, who were primarily first-time home buyers, and ensured they were financially prepared to take on a long-term expense like home ownership.

We can all rattle off the benefits of home ownership in terms of fixing your housing expense (PITI), generational, and net worth from equity compared to a renter. Still, I see very few loan officers preparing clients for the additional expenses that renters do not necessarily have to worry about every month, like fluctuating property taxes and insurance, property upkeep, and emergencies (like a broken water heater).

One piece of advice my friend would give to every first-time buyer he talked to was this, and I’m paraphrasing here:

“You’re doing the right thing by taking the first step to becoming a homeowner. And I want to make sure this is a great experience for you. Just because you qualify for a mortgage payment on paper doesn’t mean you can comfortably fit it into your ‘outside the loan application’ lifestyle. I want you to set aside what your payment would be, plus 10% for emergencies, every month for the next three months. If you can comfortably do this, you can feel confident that you can enjoy your new home and this investment into your family’s future without causing undue stress or financial hardship every month.”

This loan officer had the highest conversion, retention, and referral rates out of any of the loan officers in my company. Other loan officers would watch him take 45-minute calls with new leads and think he was crazy for investing that kind of time in something that wasn’t a “sure thing.” On the other hand, I was also a 45-minute call loan officer when I was originating, and I knew exactly what the return on that investment looked like.

In markets like today, consumers want to be educated. They want to be empowered with everything they need to make informed decisions.

The good news in a market like we’re in today is that we’ve nowhere to go but down in interest rates. So, the opportunity for a first-time buyer to reduce their financial burden in the not-so-distant future is higher than it’s been in a while. The best way to secure that refinance when rates do drop is to create a genuine relationship today.

Financial education is more than just telling someone they “qualify.” Think about taking the opportunity to really prepare them for this journey. Help them see around corners and avoid surprises. Remember, the homeownership journey is not about us closing loans; it’s about being a guide for families that are making one of the biggest decisions of their lives. By preparing your clients for homeownership in this way, you will earn more than their business. You will earn their trust, loyalty, and repeat and referral business for years to come. Mortgage transactions are a commodity. Relationships can last a lifetime.

Financial Planning to Prioritize Your Spending

Sue Buswell, Credit and Score Consultant, #sueknowsthescore

Having peace of mind when it comes to your finances is a matter of understanding need vs want.

As someone who grew up in the world of credit, first with TransUnion then Equifax and several credit resellers, I was very lucky to learn the rules of credit and credit scoring.

But even in this environment, budgeting and financial health were not discussed.

As a young adult earning and living on own, payday was a GREAT DAY. I had an idea of what my budget was for monthly expenses, but my paycheck never seemed to stretch far enough, and I ended up financing needs like groceries and wants like trips with my credit cards.

This was lesson 1 as I faced mounting debt. You need to get real about needs vs wants.

You need a safe place to live, food, transportation, and utilities.

You want a fancy cell phone, mani-pedis, trips and designer clothes.

The best way for me to learn this lesson was using the envelope system. Yes, this was a thing before YouTube, and it’s still one of the best ways to learn needs vs wants and how to budget.

While a little more challenging in a digital world, it works like this:

You get your paycheck and cash it. You have a stack of envelopes, one labeled for each expense.

Rent or Mortgage. Car payment. Gas. Insurance. Grocery. Utilities. Basic Cell phone. Child Care. Emergency fund. These are the MUST pay every month.

The next stack are Credit Cards. Loans. Student loans. These you NEED to pay every month.

The SHOULDS. Retirement savings. Education savings. Back to school. Medical care. Clothing.

The last are the WANTS. Streaming services. Coffee shop. Dining out. Entertainment. Fancy cell phone. Home improvements. Discretionary spending.

You get the idea. Googling cash stuffing will provide your endless examples from Dave Ramsey, or Jasmine Taylor the Tik Tok sensation who turned her budget into a business.

This simple, easy to use budget planning can help you demonstrate how to prioritize where and how you’ll spend your money. Once you find your balance, add an envelope for your home purchase. Down payment. Closing costs. Upgrades. Improvements.

Then go find your dream home, secure in the knowledge of your financial education, ability to budget and how to prioritize your needs vs wants.

The Art of Financial Goal-Setting

Paul Gigliotti, COO & Executive Board Member, Axis Lending Academy

Set realistic expectations– the BIG “B”- Budget

Whenever I write “budget,” I immediately think of the famous TV series “I LOVE LUCY.” For those Lucille Ball fans out there, the “B” word was the cause of almost every domestic argument between Lucy and Ricky. I am here to tell you there is another way. I am going to take a few moments to focus on the friendly and empowering approach to a family budget.

There is an art to setting any goal and meeting the expectation of that goal. The goal you select needs to be obtainable, but it also needs to challenge you. This is where it becomes interesting: you – yourself, are setting the financial goal, or you and a partner, so you know what you need in order to challenge yourself or your partnership, and that’s where the fine line of communication breakdowns we mentioned earlier can occur. LUCY…YOU GOT SOME SPLAININ TO DO! So, the first step in taking control of your financial health (and avoiding domestic arguments about finances) is to create a budget that stretches you but is achievable. When creating your budget, it’s a great exercise to take 3 average months (don’t look at November, December, or Birthday months) and list all income and expenses. This exercise will open your eyes and mind to what you are actually spending money on and help you evaluate your spending habits as well as sources of income and how to ensure you are monetizing your time. After this has been completed, realize this first step is more of a forecast (as it can fluctuate to meet your goals) than a budget. Again, if this is your first rodeo, you will likely make tweaks to ensure you are comfortable but also challenged with your goals.

Create on paper the life you want (as it relates to finances)

Project a vision of the future financial picture to help you feel more secure, then weigh it against your current financial picture. Much like the above exercise, stretch yourself a tad bit and get as close as you can to the projected vision of the future financial picture. Remember, these goals are about you or you and your partner/family’s financial health and longevity. After creating your forecast and budget, write out your short-term (1-5 years) and long-term (5-15 years) goals. This is the fun and creative part. I am a firm believer in manifestation and paving the way to your own opportunities.

Support system (accountability buddy)

You have created the life you want…or as it may be on paper. You have listed your goals, and you have an idea of how you will achieve them. Now is the time to call for reinforcements. For myself and my husband, our reinforcement was a financial planner. The first time we met Chris, we were a tad nervous but prepared. We were nervous for his response or what he would think of our current financial situation—You know how you are constantly being told to face your fears, or once you get beyond your fear, you are set free–boy, is that an accurate statement. We met with our soon-to-be lifelong financial advisor, prepared as he had requested with both our short-term and long-term goals as well as our budget and forecast and have never looked back. Our support system or accountability buddy happens to be our financial advisor. Whom we would count as a friend. Either way, engage with a financial advisor or invite a friend or family member to be that person. Just make sure that the individual is financially successful and understands you and your goals.

High-Yield Saving Strategies for Future Homebuyers

Jeremy Potter, Strategist and Advisor

As you have been reading this month in FinTalk, October is all about financial planning. When the average consumer hears “financial planning,” what do you think they think of first? My bet is that most responses would be in one of two categories – investing in the stock market or retirement. Homeownership is usually a second thought. What’s confounding is that homeownership is actually a priority for most people. Still, functionally, retirement planning has done a superior job cutting in front of almost every other priority. This means that once someone is in a financial position where their basic needs are met, many begin immediately saving for retirement.

This is in no small part, thanks to the 401(K). The 401(K) made it so easy to begin saving for retirement that many people start with their first paycheck after college. For those future homeowners, they have started forced savings for retirement before saving for a home. Thank you, compound interest (sure!), but it underscores how sticky that particular financial tool has been forming consumer habits.

For the other half of consumers working jobs without 401(K)-type accounts or contributions, the pressure remains to allocate savings to certain goals. Both future homeowners have the same problem – how to discipline monthly spending to have enough to save for a downpayment?

Forced Savings

The 401(K) is a great guide for how consumers should be thinking about homeownership. Setting up automatic savings is key. For the most part, whether or not a consumer has a 401(K), they need to contribute some automatic amount to a down payment savings account with each paycheck or monthly, at a minimum. It can be called automatic. It can be called forced. As long as it is happening, those funds will have lasting value. For instance, 20% down is no longer the standard; 3-5% down, depending on the consumer’s credit history and credit score, is sufficient even in a higher rate market. At 3%, 3.5% and 5% down are loan programs for many first-time home buyers who have a forced savings strategy.

The most important step is establishing the “auto” part of saving. The reason the 401(K) works is that it is saved before it reaches the consumer’s checking account. Right now, the best way for consumers to achieve forced savings is to mimic the 401(K) structure using the tools in standard digital checking & savings accounts. Setting up an automatic transfer of a set amount each month from checking into savings or, even better, a specific down payment-only account will maximize the amount of savings.

High Yield Savings Account

As soon as a savings strategy is established, the obvious question is whether the savings can grow and how fast. Increasingly, high yield savings accounts are available outside traditional banks. Consumer lending fintechs like Marcus and other brands, like Robinhood and AMEX, offer cash accounts with higher interest returns than savings accounts. Easy to set up, these might be a solution for first-time homebuyers.

Traditional banks and credit unions also offer cash accounts with higher interest returns – certificate of deposit (CDs) and money markets – that can easily be set up to compound the savings. Yes, these accounts typically come with a timeframe where the cash cannot be removed without a penalty. One way loan officers can work with homebuyers is by establishing the strategy and the account to line up. Of course, we’ve all had the homebuyers who say, “We’re looking to buy in the next 2 years,” and miraculously, they find the home of their dreams 3 months later. The reality is that financial planning does actually require planning, and the more involved a mortgage loan officer or digital mortgage solution can be in the customer’s planning, the better chance you have of completing the home buying process with them.

Every renter who wants to be a homeowner someday should have a higher return account where forced savings are automatically transferred once or twice a month.

Homeownership Accounts

Anyone reading this from a bank or credit union should seek ways to partner with your consumer banking colleagues. Viewing accounts at the bank (or CU) holistically offering first-time home buyer accounts with higher savings and lower or no penalties for earlier withdrawal makes a more compelling toolkit for consumers. For instance, the CD or savings account should have no penalty for early withdrawal when the money is being sent to a mortgage closing within the same bank.

Several fintechs are currently working on “the 401(K) of homeownership,” and yet banks and credit unions already have it. Those loan officers not working for depositories can easily find accounts that structure this behavior and return for their first-time home buyer clients. Becoming a part of financial planning with your customer is the best way to win their business when the time is right.

A Step By Step Process To Becoming a Self-Made Millionaire

Dustin Owen, Founder & Host of The Loan Officer Podcast

The first step to being healthy, regardless of it being physical, mental or financial, is to recognize where you have been and acknowledging how you got there. This requires a long, hard look in the mirror and allowing yourself to be honest as well as vulnerable. For many of us, we think we know but we still need clarity. Therefore, we must embark on an exercise to monitor and track all of our spending for 60 days. (If we were discussing physical health, you would track what you ate and what you did for exercise.) Tracking your spending will allow you to put together a realistic budget. This is where you must start if becoming a millionaire is in your future.

The first step in creating a budget is to start by writing down how much your household brings in each month. (This would be your pay after taxes and cost of health benefits are subtracted.) Then, from studying your 60 days of spending, notate how much of what was spent is a non-negotiable (i.e. housing, car payment, basic food, utilities) and how much was discretionary spend (concert tickets, drinks at a bar, subscription services, new clothes etc.). The removal of discretionary spending will be key to your success. You now have the data you need to create and follow a realistic budget. By following a budget, you can formulate a plan to live a financially fit lifestyle that includes spending less than you take home and saving for retirement. Here is your step-by-step plan:

Step 1: Spend less than you bring home. (If this is not possible, put yourself in a position to earn more money, which could include a second job.)

•  You should be able to achieve this in 60 days.

Step 2: Establish a Reserve Account. By tracking your spending and focusing on bringing home more than you spend, you will have money left over each month. With this money, you will establish a reserve account that holds six months’ worth of your monthly budget. This is your rainy-day fund. You should never again need to use a credit card to bail you out of a financial jam. This reserve account should never hold less than 6-months of reserves for long. Meaning, if you dip into it because life threw you a curveball, your priority is to pay yourself back ASAP.

•  This could take 3-9 months to achieve.

Step 3: Pay off all credit card debt. Once your reserve account is full, focus of paying off all credit card debt.

• This could take 6 months, or it could take 24 months.

Step 4: Begin to generate wealth via homeownership and retirement savings. Once you have achieved the above, start focusing on wealth generation and retirement savings.

• If you do not already own the home you live in, formulate a plan to purchase a home. This will be your #1 way to generate wealth.
• Enroll in your company’s 401k. Most companies offer a match to your savings. Think of this match as FREE money.
• Open a Roth IRA. This is another way to save for retirement.

Step 5: Be a forever learner. Don’t be afraid to consult with a financial advisor. Read books. Attend workshops. This is a lifestyle to live and embrace. Things like picking stocks, trading crypto, flipping real estate etc. should only be considered once Steps 1 through 4 have been mastered.

Finally, trust the process. No one gets rich overnight by systematically contributing a few hundred dollars each month to a 401k or IRA. Same applies to owning your own home. Your home is not a get rich quick scheme. Those schemes don’t exist. However, over time, the compounding effects of living this financially fit lifestyle gives you the greatest chance of becoming a self-made millionaire. I know this because history tells me so. Research indicates this basic strategy is how the bulk of today’s millionaires generated their wealth. And now you can too. Just remember, it is a process. Think marathon and not a sprint.

Connecting With Clients Through Financial Empowerment

Mike Faraci, CEO & Founder of Red Button Media

October is Financial Planning Month and is the perfect time to work towards a secure financial future… for you and your clients.

Mortgage professionals are uniquely positioned to play a pivotal role in guiding potential customers towards financial well-being. Let’s explore how you can incorporate this into your video content strategy to connect with even more potential clients.

1. Educate Your Audience
Create informative videos explaining the importance of establishing both short-term and long-term financial health. Break down complex financial concepts into simple, digestible pieces for your viewers.

2. Set Realistic Goals
Talk to your viewers about the significance of setting achievable financial objectives. Encourage them to set short-term goals, like creating an emergency fund, and long-term goals, such as saving for a down payment on a house.

3. Creating Financial Action Plans
Guide your audience on how to create actionable financial plans tailored to their budget, emphasizing saving and investing. Introducing people to user-friendly, digital tools will only help you here.

4. Keep Your Audience Motivated
Offer tips on how to stay motivated throughout their financial journey. It’s like a diet… easy to start, but difficult to maintain. Be sure to mention the importance of tracking progress, celebrating milestones, and visualizing the end goals.

5. Tracking Financial Health
Provide resources and insights on how your viewers can conduct a thorough financial health check-up. Direct them to reputable websites or tools that help evaluate debt, savings, investments, and retirement plans.

6. Share Success Stories
Showcase success stories of individuals or families who have achieved their financial dreams through prudent planning and responsible mortgage decisions. Real-life examples can be highly motivating and will ensure your viewers don’t feel all alone.

7. Interactive Q&A Sessions
Host live or pre-recorded Q&A sessions where your viewers can ask financial-related questions. Address their concerns and provide insightful advice. Helping people solve rea-world challenges is a great way to build trust with your audience.

8. Collaborate with Financial Experts
Don’t be afraid to call on other financial advisors or experts for a video series. Their expertise can provide immense value to your audience, and vice versa.

By integrating these topics and strategies into your video content, you can effectively connect with potential customers and referral sources.

Remember, empowering individuals with financial knowledge as a mortgage professional is a selfless journey at the start. Stay committed and it will be a rewarding one.

Happy Financial Planning Month!

Putting Seasonal FUN in FUNding

Jacqui Cosgrove, Founder of Kore4Capital

As a loan officer or financial professional, you have the unique opportunity to guide positive emotional and practical experiences in your client’s financial health journey. This article will give suggestions on how to overcome emotional or practical barriers to setting and achieving financial planning goals which plague many Americans. As noted by the Federal Reserve Bank, “47% of Americans are ‘financially fragile’ and could not cover an unexpected $400 expense without going into debt.”

Start with Compassion

It helps to recognize that setting a financial goal can seem useless or defeating for consumers. Make it your mission to help clients set achievable goals, access subsidies, and leverage savings partnerships and automations that celebrate the success and pride to be taken in incremental wins.

Enhance the Experience

We all need treats and rewards. Without wins along the way, it’s hard to stay committed to the bigger vision. Using programs that add automation, incentives, and support, like Holiday/Vacation Accounts, Incented Savings Programs, and Matched Savings Accounts (IDA) are a motivating way to make your client’s saving goals feel attainable.

Celebrate The Wins

Build on success, subsidies and SMART goals. Encourage clients to set up high yield/automated savings accounts cited above for the small but mighty milestone of a dream vacation or short-term win. Celebrating small wins can be a potent tool for your clients to begin to believe they can achieve other milestones in their financial health and homeownership journeys.

Lead The Way Seasonally

Engage quarterly on “Putting the FUN in FUNding” milestones that could match common requirements for your client’s longer term goals:
– Holiday/Vacation FUNds
– Emergency FUNds
– Debt Paydown FUNds
– Closing Fees & Home Purchase FUNds

Best of luck inspiring and engaging your clients this season! Just as you can guide them to the fun of financial health, I wish you all the fun of celebrating their incremental steps towards success!

Financial Management – Lessons to my 25 Year Old Self

Jeffrey Walker, CEO and Co-Founder of CredEvolv

What I know about managing my finances results from years of mistakes, testing and learning. In my case, formal schooling did a poor job of preparing me for personal financial responsibility. For example, my college finance degree enabled me to use complex stock options models and help mega-cap companies develop cash flow models but left me woefully unable to manage my own monthly cashflows.

And even years later, in the midst of the dot com bubble, I seriously considered quitting my ‘real job’ because my relatively short-live dot com gains exceeded my annual salary (until they didn’t!). Fortunately for me, I never quit my day job.

So, with those disclosures in mind, here’s what I’d recommend to my 25 year old self.

1. Identify your unique financial situation. The first step of the financial planning process is to assess what is happening in your life right now and how if and how you can change your financial situation. Some areas to reflect on are your household budget (I use Mint.com for budgeting but there are plenty of solutions), other financial obligations such as major family events (weddings, death, divorce), retirement savings, and tax strategies. You can’t manage what you can’t measure, and as a credit expert I see every day the pitfalls of assuming what you think you spend is accurate. Get the facts.

2. Set realistic financial goals. Goals serve four basic functions: they provide guidance and direction, facilitate planning, motivate and inspire personal success, and help individuals and families to evaluate that success. Your goals need to reflect your lifestyle (single, married with kids, divorced paying alimony) and your career risk tolerance – for example, can I afford to be an entrepreneur early in my career or only once I’m financially stable? Am a company lifer, or am I willing to start over and relocate for that big promotion?

3. Make plans for the future. Once you know who you are, where you stand and where you would like to be financially, you can begin to plan for the future. I recommend engaging a fee-only financial advisor early in your planning, there are plenty of low cost options. For some, meeting financial goals will simply mean continuing on their existing path. For others, realizing financial goals will require a change in lifestyle. Even the best plans are subject to the unknown, so be willing to adapt and review.

4. Manage the monthly income you have available. Managing the money you currently have will most definitely determine how much money you have to manage in the future. Your income needs are directly related to your spending habits, and your situation is unique to you. A relative recently shared that he had concluded that managing his spouses spending was a non-starter – for him, the only viable path to successful retirement as a married couple was to earn significantly more than she spent.

5. Review your plan on a regular basis. Your financial plan should be a living document, and it needs to accurately reflect what your personal lifestyle requires. As your circumstances change, the financial plan should be updated. A good time to review your financial plan should be when major life changes – such as marriage, having children or changing jobs – occur. I recall a co-worker saying once that his rule of thumb was you need a net worth of $10 million to retire. Can you imagine the un-necessary stress that would cause if you actually bought in to that? Keeping up with the Joneses is a bad strategy.

Begin With the End in Mind

Rob Chrane, CEO & Founder of Down Payment Resource

When it comes to making solid investments, you can’t beat the stability and wealth-building benefits of homeownership.

Every prospective homebuyer is told to educate themselves on the process, start saving, and make sure their credit is in order. This is great advice, but buying a home will be the largest financial investment most of us make in our lifetime. It’s intimidating to say the least, and many of today’s consumers are struggling to pay monthly expenses, much less save for a down payment on a home. There’s also a ton of bad information out there that has sidelined buyers who may be mortgage-ready and don’t even know it.

Whether homeownership is a short- or long-term goal, it’s never a bad idea to “check the pulse” on your financial health and get on the right path toward financial wellness.

Budget Planning and Goal Setting

There are several trusted organizations that can help consumers meet their financial goals. NeighborWorks America offers nationwide counseling services that provide the financial education needed for successful homeownership. Their network of trusted advisors will guide consumers through buying a home, down payment assistance (DPA), rent relief and more.

If there isn’t a NeighborWorks location nearby, consumers can also search for a local HUD-certified housing counselor. Both resources provide the tools needed to make good financial decisions, and with a solid plan in place, consumers can better protect their credit and finances when faced with income changes or unexpected expenses.

And, this education isn’t just for consumers. NeighborWorks also offers training and certifications for professional development for anyone interested in learning how to better serve your community through housing counseling or nonprofit leadership.

Debt and Credit Counseling

With many facing the restart of student loan repayment, debt management will be a crucial element for long-term financial success. The National Foundation for Credit Counseling (NFCC) has a network of certified credit counselors that will help consumers create realistic plans to tackle debt and overcome their financial struggles.

They offer in-person or online services where counselors will address credit card debt, student loans, housing decisions, and overall money management.

Be a Trusted Advisor

Many communities, especially low-income and minority groups, are faced with a lack of reliable sources for financial guidance. As housing industry professionals, we have the responsibility of being a trusted resource and advocate for all consumers. Our guidance is even more important in this inflated housing market, where mortgage rate hikes and limited inventory have caused down payment costs to swell.

Take Jackie’s story, for example. Thanks to support from a local DPA program and the dedication of industry professionals like Pam Marron with Innovative Mortgage Services, Jackie was able to overcome the obstacles standing between her and affordable homeownership. Her story serves as the perfect reminder of the impact that can be made when we work together to create pathways to affordable and sustainable homeownership.

Financial Planning – Build a Rock-solid Foundation First

Steve Ely, CEO of eCredable

Our customers tend to be younger and can only dream of being a first-time homebuyer. Younger people have fewer financial resources and limited experience when it comes to Financial Planning. It’s hard to talk about Financial Planning when many of them are living paycheck-to-paycheck. Their idea of Financial Planning is trying to make sure there’s enough money in the checking account to pay all the bills on time and avoid overdraft fees.

So how can you approach Financial Planning? Take it one step at a time and know that it will take some time to achieve your goals. We recommend these three steps:

Step 1. Build a budget you can live with – People tend to build unrealistic budgets and then give up at the first sign of trouble. If you’re not going to cut back on your morning trip to the coffee shop, then don’t build a budget that eliminates this expense! Find something else to cut out of your expenses. Our LiftLocker product includes a straightforward budgeting tool to help you maintain your budget.

Step 2. Create a realistic plan – This means setting goals that are achievable in a reasonable timeframe. If you have goals that show your income doubling every year for 5 years, you’re not being realistic! Our LiftLocker product includes setting up goals and monitoring your success towards achieving your goals (like getting out of debt or buying a house).

Step 3. Save, save, save – You need to save money not only for a downpayment, but for ongoing maintenance of your new home. Establish a goal to save the minimum amount you’re going to need.

Buying a home is a major step towards financial stability and wealth creation. Use this as a building block towards long-term Financial Planning based on a rock-solid foundation.

Navigating the Path to Financial Success: A Personal Journey

Ally Carty, National Account Executive, ActiveComply #get2knowgenz

It is funny for me to provide financial planning advice because, if we are being honest, long-term financial health is something I am still trying to master. So, I will answer in two ways.

The first way is by sharing little implementations into my daily routine that (I hope) will prepare me for future financial success. I am a visual person, so unless I have a roadmap and a clear layout of where I am spending my money, it is hard for me to stick to any budget or tracking cycle. Over the summer, I wrote down a few goals I want to accomplish in the next 3-5 years and then talked it over with my parents on how to achieve those goals. I then utilized the knowledge I have obtained from our industry and the resources I have through technology to have virtual reminders of those goals and certain things I need to do to stay aligned with my 3-5 year plan. One goal was to improve my credit score. I have an alert set through a financial fitness app (S/O FinLocker -slay!) that I use to notify me anytime there is a change to my score. This is just one tactic I am using to better prepare myself for future financial success. However, my biggest suggestion to anyone trying to work on their financial health is to commit to yourself. Sit down, figure out what you want to accomplish, and use the resources we have through technology to hold yourself accountable.

The second way is to share questions I still find confusing, and I hear from my friends that they also find confusing.

What makes credit scores rise and fall?

• • “What does it mean for my score if my credit is “pulled”?”
  • “I paid my electric bill a day late. Will my credit score go down?”

The idea of home equity

• • “Why would I want to pay $2400/month to own a home when I can just keep renting for $2300?”

What is an interest rate?

• • “Does my mortgage lender decide what the rate is today?”

These are just a few quotes I have heard when I interviewed some individuals in my life who rent properties. There’s such a need for education and helping more individuals break down the components of financial success. I hope you respond to these questions with your own social media content to develop a relationship with the people in my life to become that trusted resource for financial education. 😊