Borrowers come to you at all levels of financial preparedness. First-time homebuyers can have student loan debt, an average credit score, a high DTI, and insufficient savings to cover their down payment and closing costs. How do you get each borrower mortgage-ready without putting pressure on your already strained internal resources?
Applications from past clients looking to refinance or purchase a new property are not guaranteed to be easy to close, either. They can return to you with their finances in a different shape – a lower credit score, high credit card utilization – than what they were when you financed their last home purchased.
Personalized service throughout the mortgage process is very important to homebuyers. While 73% of respondents to the Maxwell 1H 2022 Millennial and Gen Z Borrower Sentiment Report claimed to be either somewhat or very knowledgeable of the mortgage process, 78% said they value meeting in-person or virtually with a loan officer to guide them through the mortgage process.
Fintech is making it easier and affordable for lenders to provide a customer-centric mortgage process that adjusts to each borrower’s timeline. Data-driven solutions can personalize the homebuying experience by guiding each prospective homebuyer to overcome the barriers preventing them from securing a mortgage.
What’s more, if you do it right, you’ll create customers for life and brand evangelists. Most consumers buy or refinance a home every five years, so you can’t build your pipeline for the next two years on retention. When originators provide a personalized homebuying experience that guides their borrowers towards mortgage eligibility, referrals to family, friends, and neighbors will be sure to follow.
The majority (79%) of Millennial and Gen Z borrowers admit to shopping around for the right lender before they begin the mortgage application process, with 50% using online reviews, 33% turning to social media and 39% relying on referrals from family and friends, according to the Maxwell report. 48% of these homebuyers say personal guidance and support from a lender will influence their decision to choose a lender. To build a profitable sales pipeline, you should aim to provide a personalized experience that garners recommendations from each borrower. Borrowers you helped overcome credit or debt challenges on their way to mortgage readiness will be more inclined to promote your business.
FinLocker has the tools and resources to get your borrowers mortgage-ready at their own pace and is also a brand loyalty driver. A FinLocker, private-labeled with your brand and featuring your loan originators, will keep your company top-of-mind with every login so that you’ll be the only lender your borrowers will want to recommend and return to for future financing.