Rethink Everything About Attracting and Educating First-time Homebuyers
This month, our mortgage and finance experts provide loan officers with practical strategies and tips on attracting and educating first-time homebuyers to prepare for homeownership.
How to Generate High Intent Leads with a First-time Homebuyer Workshop
Brian Vieaux, President and COO, FinLocker
What Mortgage Pros Need to Know About FICO’s 2025 Credit Score Price Hike
Brian Vieaux, President and COO, FinLocker
How to Qualify More First-time Homebuyers by Offering Rent Reporting
Steve Ely, CEO of eCredable
Celebrating Military Family Appreciation Month: Supporting Military Homebuyers
Rob Chrane, Found & CEO, Down Payment Resource
Wishing you a joyous holiday season BUDGET and a prosperous BUDGET New Year
Paul Gigliotti, CEO & Executive Board Member of Axis 360 Lift
View all previous articles
How to Generate High Intent Leads with a First-time Homebuyer Workshop
Brian Vieaux, President and COO, FinLocker
Online webinars and in-person workshops offer a powerful means of educating and nurturing high-intent prospective homebuyers. When co-hosted with a real estate agent and other referral partners, this collaborative approach enhances the value of the content for the attendees.
Co-hosting with referral partners
Mortgage originators should partner with local real estate agents to discuss topics such as searching for a home, making an offer, and other related home buying related topics. This will enable you to split presentation duties and double marketing efforts. Also, considering adding a home inspector, home insurance agent, building contractor to discuss renovating or remodeling.
Location
Originators focusing on a specific city or town can leverage their local knowledge as a unique selling point. By hosting in-person workshops in their community, you can establish yourself as trusted advisors and attract homebuyers who value local insights.
If your office building doesn’t have a large meeting room, bring the workshop to the neighborhood. Venues, such as libraries, church meeting rooms and co-working spaces, are often available for free or a minimal charge. Search for venues for “seminars” on PeerSpace.
Marketing your first-time homebuyer workshop
- Email invitations to prospects in your pipeline.
- Promote the workshop on social media to attract early journey homebuyers.
- Email invitations to clients you are servicing or have closed. They might be considering buying another home this year or can refer someone who is.
- FinLocker and KeySteps can be co-branded with real estate agents. Every agent who is co-hosting a workshops should also invite their clients, and can be given a personalized digital business card so they will be the agent in their client’s app.
- In-person and online educational workshops can be promoted in similar ways:
- Create a free event listing on Eventbrite to gain additional exposure
- Create social media posts with hashtags like #FirstTimeHomebuyerWorkshop, #HomebuyingProcess, #MortgageProcess, and #FirstTimeHomebuyerEducation
- Record the presentation and send the on-demand link to attendees to rewatch the seminar with a reminder to continue using your FinLocker to get mortgage ready and buy a home
- Send registrants who did not attend a different email message with the recording link and an invitation to download your app.
- To attract homebuyers moving to your region who will need an originator and real estate agent with local knowledge, record the first-time homebuyer workshop and publish it on your YouTube channel. At the end of each video display a slide or card that has a QR code to download your app. Title the workshop with your city, such as “St Louis First-time Homebuyer Workshop,” so homebuyers can easily find it on YouTube or online.
FinLocker offers a comprehensive suite of tools to complement homebuyer education programs. We recommend giving your invitation link to every person who registers for the workshop with a request to download the app and create their account prior to the workshop. It only takes a few minutes to download and create an account, so they can also do it at the start of the workshop so they can interact with the various sections of the app during the workshop. Encourage attendees to continue using the platform after the workshop to keep them connected to your business while following their personalized path to homeownership.
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Here’s how FinLocker can complement first-time homebuyer workshops:
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Consumers can share their financial data and documents with their loan officer directly from their app, streamlining the application process for the homebuyer, originator, and operations team. |
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What Mortgage Pros Need to Know About FICO’s 2025 Credit Score Price Hike
Brian Vieaux, President and COO, FinLocker
In a move that caught the mortgage industry’s attention on November 7, 2024, FICO announced plans to increase the cost of mortgage credit scores by approximately 50% in 2025. This price adjustment will push the cost per credit pull from about $3.50 to $4.95, prompting discussions about its broader implications for the industry.
Why is this happening?
Two key factors are driving this price increase:
- FICO’s dominant position in the credit-scoring market
- Expected surge in home loan demand as interest rates potentially decrease
Impact on the industry
For Lenders
While a $1.50 increase might seem modest at first glance, the cumulative effect could be substantial for mortgage operations. Lenders typically pull credit multiple times during the loan process, and high-volume operations could see significant cost increases annually.
For Borrowers
Though credit pulls represent a small portion of overall closing costs, this change could affect borrowers in several ways:
- Potential pass-through of increased costs
- Higher fees for multiple credit pulls during the loan process
- Added importance of credit score stability throughout the loan process
What this means for your business
As industry professionals prepare for this change, consider these key points:
1. Cost Management
- Review your current credit pull practices
- Evaluate pricing strategies
- Consider bundling services to offset increased costs
2. Process Optimization
- Streamline when and how often credit is pulled
- Develop more efficient pre-qualification processes
- Consider alternative credit monitoring solutions
Looking ahead
While this price increase poses challenges, it also presents an opportunity for mortgage professionals to optimize their operations and explore innovative solutions. The key will be finding the right balance between managing costs and maintaining thorough credit evaluation processes.
FinLocker provides loan officers with soft credit pulls and automated alerts when scores improve, making it easy to identify qualified mortgage applicants.
Consumers get real-time interest rate estimates based on their credit score, personalized guidance and tools to improve their credit health.
Instead of multiple expensive credit pulls, loan officers can efficiently monitor potential borrowers’ credit progress through FinLocker’s proactive alerts.
How to Qualify More First-Time Homebuyers by Offering Rent Reporting
Steve Ely, CEO of eCredable.com
I have worked in the credit reporting industry for a long time. I frequently respond to questions about how the inner workings of this complicated industry works, and there are few questions more difficult to answer than why there are not more rental accounts in the credit files at the national credit bureaus.
Everyone knows how important your credit score is when applying for any type of loan. Unsecured loans – like credit cards, personal loans, and student loans – rely almost exclusively on the credit score itself. But when applying for a secured loan – like an auto loan or mortgage – the contents of the credit matter much more.
In the case of a mortgage, every account in your credit report is reviewed to better understand your credit history. When your credit history is limited, having a rental account on your credit report can make a real difference by demonstrating your ability to pay a significant financial obligation over an extended period. For most people, their monthly rent is the largest payment they make – by far.
Why is that so few credit files have a rental account included? The rent reporting industry has been around for about twenty years, yet less than 5% of all credit files have a rental account present. The fundamental reasons are the lack of incentives for the landlord and the difficulties faced by the tenant given the amount of friction involved in the business model. 20% of the rental market is managed by large property management companies, which have sophisticated software systems that make it easy to access the information that is required to add a rental account to a credit report. 80% is managed by smaller landlords with 4 units or less, which have little or no sophistication.
Why is this problem so hard to solve? The credit bureaus have significant reporting requirements for rental accounts to mitigate fraudulent reporting. The minimum amount of data that needs to be verified includes the landlord, the tenant, the term, the payment amount, the payment date, and the property. This is straightforward in the case of the Property Management Company. They already have all this data – they just need the tenant to opt-in to allow their landlord to report their rental payments to the credit bureaus. We can only surmise that the value proposition for these tenants is not compelling enough. They probably already have a good enough credit score to meet the lease requirements for the apartment.
What about the other 80% of the rental population that rents from the micro landlord (aka “Mom and Pop” landlord). To meet the same stringent reporting requirements for the credit bureaus, they need to comply with the same requirements as the Property Management Company. Now you know why there are less than 5% of rental accounts on credit files . . .
We think this about to change, and there are two major forces driving this change:
1) Open Banking – More and more solutions are being developed that leverage the ability to access the consumer’s bank account. This valuable source of information is incredibly useful when trying to understand if the consumer made a payment on an account, when you do not have access to the account in question.
2) Artificial intelligence (AI) – One of the many uses of AI is removing the human involvement of verifying a complicated document like a lease. It is now possible to inspect the lease to extract 90% of the information that needs to be verified before building a rental account that can be reported to the credit bureaus.
eCredable recently launched a rent reporting solution that addresses the needs of the tenant renting from a Property Management Company, and the needs of the tenant that rents from the Micro Landlord. The tenant has the most to gain by having their rent payments reported on their credit file, so why not let them drive the process? They simply upload their lease so we can extract the relevant information that needs to be verified. We use AI to scale this part of the process without human intervention. The only involvement from the landlord is one text message which acknowledges their tenant is going to start reporting their rental payments on their credit file.
Coupled with utility reporting, we believe this new offering has the potential to significantly scale the number of rental accounts on credit reports. This also allows the first-time homebuyer who would benefit from this important account being included in their credit file to take responsibility for making this happen.
Celebrating Military Family Appreciation Month: Supporting Military Homebuyers
Rob Chrane, Found & CEO, Down Payment Resource
November is Military Family Appreciation Month, a time to honor the sacrifices and contributions of service members and their families. For housing industry professionals, it’s also a reminder of the unique challenges faced by service members and their families when it comes to buying, building, or renovating a home. With countless moves, deployments, and the financial strains of military life, providing specialized support is essential to helping them achieve their homeownership goals.
At Down Payment Resource, we’re thanking our service members and the housing industry pros who serve them by bringing some attention to homebuyer assistance programs supporting military buyers. While these buyers are eligible for any of the 2,400-plus U.S. homebuyer assistance programs we track, there are programs developed specifically to help them build, buy or make accessibility-related home renovations.
Dedicated Programs for Our Heroes
We’ve identified 49 homebuyer assistance programs offering up to $117,000 in financial support tailored to the military community. These programs go beyond general assistance by addressing the specific needs of service members, Veterans, and their families. Whether it’s help with the down payment, funds to make accessibility-related home renovations, or specialized loan options, these resources empower military families to secure housing that suits their needs.
In addition to these exclusive programs, 211 homebuyer assistance programs exempt Veterans from first-time homebuyer requirements, making it easier for those who have previously owned a home to re-enter the market.
How You Can Help
If you have clients or prospects who are a part of the military community, now is the perfect time to explore homebuyer assistance options. With 49 programs exclusively for military buyers and hundreds more offering tailored benefits, the path to homeownership is more accessible than ever. By raising awareness about these resources, we can make a meaningful difference for military clients seeking stability and security in their housing journey.
Wishing you a joyous holiday season BUDGET and a prosperous BUDGET New Year
Paul Gigliotti, CEO & Executive Board Member, Axis 360 Lift
Wishing someone a joyous celebration through the holiday season and thinking about a budget doesn’t really go together, in fact reading the title of this article “Wishing you a joyous holiday season BUDGET and a prosperous BUDGET New Year” almost hurts the eyes, but I promise you sticking to a budget during the holidays is not all doom and gloom, in fact it’s a great first step into the lifestyle change that is required when becoming a homeowner and can be a little fun, I PROMISE. The holiday season is indeed a magical time filled with joy, celebration, and cherished memories. However, this “extra” joy often comes with “extra” costs—whether it’s festive decorations, gifts, parties, or travel. For potential homeowners, it’s especially important to manage holiday spending and keep your long-term goal of owning a home in focus. The article we are sharing will walk you through some creative ways to stick to a budget. As you are reading through the article, remember there is nothing wrong with buying $10 gifts as opposed to $40 gifts, homemade treats are more fun to make than standing in a long line with credit card in hand, and a hot glue gun with some red ribbon can spice up any holiday decorations.
First and foremost let’s review the Importance of Budgeting
Homeownership is a major lifestyle change that requires financial discipline. Setting and sticking to a budget during the holidays is a great way to practice the skills you’ll need to manage the costs of homeownership. This includes handling mortgage payments, maintenance expenses, and property taxes. By staying within your holiday budget, you can avoid unnecessary debt and keep your savings on track. With that being said, it’s also important to make sure you have a stash of cash (in the bank earning interest) when you become a homeowner. Remember the money you are using to pay monthly credit card bills could go to you savings to support your homeownership goals.
Tips for a Budget-Friendly Holiday Season
Create a Holiday Spending Plan
Start by outlining your holiday expenses, including gifts, food, travel, and decorations. Allocate a specific amount to each category and stick to it. Use tools like FinLocker’s financial management app to track your spending in real time and ensure you stay within your budget.
Prioritize Your Goals
Remind yourself of your ultimate goal—homeownership. Each dollar spent during the holidays could instead contribute to your down payment or emergency savings. Visualizing your dream home can help you stay motivated.
Opt for Meaningful, Low-Cost Traditions
Consider alternatives to expensive gifts or lavish gatherings. Homemade presents, potluck dinners, or simple family traditions can bring just as much joy without derailing your budget.
Limit Credit Card Use
It’s easy to overspend with credit cards during the holidays. Try using cash or a debit card tied to your budget to ensure you’re only spending what you can afford. If you use a credit card-only charge what you can pay off in February and remember that Valentine’s day is in February.
The Long-Term Benefits of Budgeting
Developing and sticking to a budget isn’t just a holiday exercise—it’s a critical part of financial readiness for homeownership. Maintaining control over your finances now will prepare you for managing the responsibilities that come with owning a home, from unexpected repairs to rising utility costs.
This holiday season, let your long-term goals guide your spending. Celebrate joyfully but wisely, keeping in mind that every budget-friendly choice brings you one step closer to your dream of owning a home. By sticking to your budget, you’re not just saving money—you’re investing in your future.
If you are a potential homeowner and get anxious or squirrely about spending during the holiday season you might want to try a quick practice of visual reinforcement– picture yourself and your loved ones in your new home this time next year. What will that feel like having accomplished your goal and enjoying the holidays in your new home together? Goals are never simple, they are supposed to be work, they are supposed to be effort and once achieved they reshape you.