Rethink Everything About Attracting and Nurturing First-time Homebuyers

This month, our mortgage and finance experts provide loan officers with practical strategies and tips on attracting and nurturing first-time homebuyers to prepare for homeownership.

The Crawl, Walk, Run Strategy to Bridge the Wealth Gap for Diverse Communities
Paul Gigliotti, CEO & Executive Board Member of Axis 360 Lift

The Dynamic Duo: Leading with Financial Education and Nurturing First-Time Homebuyers with Technology
Brian Vieaux, President and COO, FinLocker

How to Start a Community-Centered Podcast that Builds your Brand, Attracts New Clients, and Expands your Network
Brian Vieaux, President and COO, FinLocker

Proactive Finance Means Longer Pipelines But It Is Worth It
Jeremy Potter, Founder, Next Belt Strategies

Turning Affordability Challenges into Opportunities for Growth
Rob Chrane, Found & CEO, Down Payment Resource

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The Crawl, Walk, Run Strategy to Bridge the Wealth Gap for Diverse Communities

Paul Gigliotti, CEO & Executive Board Member, Axis 360 Lift

We all have heard the phrase- first, you have to crawl, then walk, then run? This phrase is often attributed to a Chinese proverb. However, its exact origin is unclear, and it’s possible that it has been used in various cultures and contexts over time. We understand that if we try to jump (no pun intended) directly into running, we are going to stumble and fall.

This proverb is commonly used as a metaphor for the process of learning and personal growth. It suggests that progress and mastery come from taking small, incremental steps and building upon previous knowledge and experience. By starting with the basics (crawling) and gradually advancing to more complex tasks (walking, then running), you can develop a strong foundation and ultimately achieve success in your endeavors. I am also a firm believer that this type of foundational learning or process will create a truly authentic learning experience that will serve not only to enrich your professional life but also your personal life, including your health and financial growth/stability. This concept or thought by no means suggests that you have to be an executive to live an enriched authentic life, or that you have to be a millionaire to be happy or that these are even your goals, but what it simply suggests is authentically living allows you to be who you are 100% of the time, or as I like to call it a whole-self-approach. Aligning your goals with who you are supports movement toward the actions it takes for you to achieve your goals. This type of authenticity happens naturally when you build a foundation, as well as experience and learn every “step” needed.

Since September was National Preparedness Month and National Hispanic Month continues until October 15, I decided to tie in the importance of preparation to enhance the crawl, walk, run experience and how this can support bridging the wealth gap for diverse communities.

Benjamin Franklin, known for his wisdom and practical advice, said, “By failing to prepare, you are preparing to fail.” This quote serves as a reminder that preparation is key to achieving success and avoiding potential setbacks. When we don’t take the time to prepare properly, we increase the likelihood of encountering difficulties and experiencing failure. This concept applies to many areas of life, from personal goals to professional pursuits.

So, now that we have our analogy and understanding of the importance of sequential steps toward crawling, walking, running or –building a foundation, as well as the importance of being authentic and the benefits of being prepared, we can take these functions and apply them to supporting growth for not only “us” but generations behind us with strong, sustainable financial health and homeownership. We can and should branch out to provide unserved communities and markets with this practice.

The Hispanic market is indeed strong and growing in the homebuying sector. According to various sources and studies, the rate of Hispanic homeownership has been steadily increasing, with some predictions suggesting it could surpass 50% by 2025. Furthermore, a significant percentage of Latinos are actively seeking to purchase homes, with younger generations, such as millennials and Gen Z, being particularly active in the market.

Historically, Caucasians, or non-Hispanic Whites, have consistently maintained the highest rate of homeownership among all racial and ethnic groups in the United States. According to data from the U.S. Census Bureau and the National Association of Realtors, the homeownership rate for Caucasians has typically been above 50%, reaching as high as 76% in the mid-20th century.

In recent years, while the homeownership rate for Caucasians has decreased slightly, it still remains significantly higher than that of other ethnic groups. For example, as of the fourth quarter of 2021, the homeownership rate for non-Hispanic Whites was approximately 72.1%, while the rate for Hispanics was around 49.1%.

We are now seeing a change in the marketplace, and it’s up to us as an industry to prepare for this change so we do not prepare for failure. As an industry, we must focus on meeting the consumer where they are and remember to understand who that consumer is. As an industry, it is our responsibility to ensure we equip our lending organizations with mortgage originators who can relate to the next generation of this consumer and support this consumer. If the mortgage originator can relate to the underserved Hispanic community, then there is a higher probability that the Hispanic homeowner will trust that originator. Where there is trust, there becomes a relationship, which brings us back to crawling, walking, then running…

Homeownership doesn’t only build financial wealth for the homeowner but can, in fact, support personal development and growth for the individual, their family and the community they live in.

The Dynamic Duo: Leading with Financial Education and Nurturing First-Time Homebuyers with Technology

Brian Vieaux, President and COO, FinLocker

Attracting first-time homebuyers and guiding them through the complex process of qualifying for a mortgage is the foundation of every successful loan officer’s sales pipeline. A key strategy that has proven successful for the hundreds of loan officers that I regularly speak with is leading with financial education. By empowering early-journey homebuyers with the knowledge and tools to improve their financial health, you help them make progress toward mortgage readiness. Financial education is not just about sharing knowledge—it’s about providing practical, actionable guidance that prepares potential buyers for long-term success.

I’m seeing this educational approach take off across multiple platforms—loan officers are utilizing social media to cast a wider net, hosting virtual and in-person homebuyer seminars to strengthen ties with their local community, and providing valuable content through webinars which they’re placing on YouTube to attract a wider audience. The next generation of homebuyers is hungry for this knowledge and seeking it out long before they are mortgage-ready. By positioning yourself as an trusted advisor, you can attract early-journey homebuyers into your ecosystem, nurturing them as they prepare to qualify for a mortgage.

But education alone isn’t enough—loan officers need to amplify this strategy by leveraging technology that provides practical tools for financial improvement. That’s where FinLocker’s new product, the KeySteps app, comes into play. KeySteps is designed for loan officers in every channel—whether you work in wholesale, a bank, credit union, or independent mortgage bank. The app is a versatile, powerful tool that can be used by any loan officer, regardless of whether you’re part of an existing FinLocker enterprise client or not.

KeySteps brings your financial education efforts to life by providing an interactive experience for your clients. For example, if you’re educating early-journey homebuyers about budgeting so they can save for their down payment and pay off their credit card, you can direct them to KeySteps, where they can track their spending history, create a goal and budget, and monitor their financial progress in real time. This hands-on experience helps your clients apply the financial principles you’ve taught them, while strengthening their financial readiness for homeownership.

By combining your financial education with practical technology like KeySteps, loan officers can build stronger relationships with prospective homebuyers. You’ll gain a reputation as a trusted advisor by helping them improve their financial health and, ultimately, guiding them toward achieving their goal of homeownership.

How to Start a Community-Centered Podcast that Builds your Brand, Attracts New Clients, and Expands your Network

Brian Vieaux, President and COO, FinLocker

As a mortgage originator, you’re uniquely positioned to build trust with realtors and prospective homebuyers. One powerful way to do that is by creating a community-centered podcast—a platform that promotes local businesses and highlights what makes your community special. With nationwide distribution, a podcast can become a valuable resource to attract the attention of homebuyers moving into the area and help you stand out as a local expert.

Here’s how creating a podcast focused on small businesses in your area can help you grow your network, attract new clients, and build a stronger brand.

1. Show You’re Invested in the Community

When you interview local business owners, you’re showcasing your deep connection to the community. This instantly positions you as someone who not only provides mortgage services but also cares about the local economy and the people in it. For homebuyers, especially those moving from out of town, this type of insight can be invaluable as they get a feel for the area.

Tip: Think about businesses new residents would care about— schools, locally-owned restaurants and shops, and independent contractors and tradespeople. Also, look at what makes your area unique, including artists, musicians, festivals, and parks.

2. Build Relationships with Realtors

Realtors are always looking for ways to connect with new homebuyers, and by creating a podcast, you offer them a platform to share with their clients. This helps you strengthen relationships with realtors, who may, in turn, refer homebuyers to you for mortgage needs. You’re creating content that realtors can share, making it easier for them to attract clients while subtly promoting your services.

Tip: Invite realtors to be guests on the podcast as well. You can create episodes around “The Top 5 Neighborhoods for First-Time Homebuyers” or “The Top 5 Neighborhoods for Families,” giving them a platform to share their expertise while keeping you top of mind.

3. Become a Local Expert for Homebuyers

Moving to a new area is stressful, and homebuyers want as much information as possible. Hosting a podcast showcasing local businesses allows you to market your community knowledge, providing new homebuyers with a resource beyond mortgage advice. You can share stories from local business owners, highlight schools or community organizations, and give tips on how to get settled.

Example topics:

• • “Best Family-Friendly Spots in [Your City]”
  • “Hidden Gems: Small Businesses You’ll Love in [Your City]”
  • “Why [Your City] is the Best Place for First-Time Homebuyers”

4. Help Small Businesses While Promoting Yourself

When you promote local businesses, you’re not only helping them gain exposure but also benefiting from the relationship. Small businesses often have loyal customer bases, and when they share your podcast with their followers, you gain visibility within the community. It’s a win-win!

Tip: When interviewing small business owners, encourage them to share the podcast with their customers, post it on social media, and highlight your collaboration. This amplifies your reach while positioning you as a community advocate.

5. Easy Setup and Execution

You don’t need to be a podcasting expert to get started. You can begin recording and publishing interviews online with basic equipment and free software. I use Riverside to record and upload the Fintech Fridays podcasts to Spotify and YouTube. I’ve also heard Spotify (formerly Anchor) and Buzzsprout are easy to use. Other distribution platforms are Apple Podcasts and Google Podcasts.

Basic steps to get started:

• • Plan your episodes: Decide which businesses to feature, and create a schedule to record and promote interviews.
  • Get equipment: Start with a basic USB microphone, headphones, and free audio editing software like Audacity. If you’ve heard my podcast, you’d know that I record in one take and upload it to keep it casual, so don’t be concerned that you need to spend a lot of time editing if that’s not your thing.
  • Record and promote: Record your episodes, share them on social media, and encourage your guests to share, too. Add a page to your website so customers can easily access podcasts.

6. Stand Out in a Crowded Market

In the highly competitive mortgage industry, finding ways to differentiate yourself is key. By offering a community-focused podcast, you establish yourself as a mortgage expert and a local influencer and advocate for your area. This type of content is different and engaging and positions you as more than just a loan officer—you become a trusted resource for homebuyers and business owners alike.

If you’d like to see a loan officer successfully hosting a podcast, check out The Texas Real Estate & Finance Podcast hosted by Mike Mills, which he distributes to Spotify, Castro and Apple Podcasts.

Creating a podcast may seem like a big step, but it’s an incredibly rewarding way to connect with your community, support small businesses, and attract new clients. By giving back and highlighting the unique aspects of your community, you build stronger relationships that can lead to more referrals and closed loans. Let me know if you give it a shot so I can promote your podcast.

Proactive Finance Means Longer Pipelines But It Is Worth It

Jeremy Potter, Founder, Next Belt Strategies

Almost everything we do is built on assumption. When I first started to work in product development, my team of product managers studied behavioral economics as a way to improve our thinking and design. Behavioral economics was well established in things like consumer products and marketing. It has taken longer to influence financial services, especially mortgage. The point is that much of our sales strategy in our industry is based on key assumptions. For example, consumers do not care about the mortgage; they want the home (or in the case of refinance, they just want the lower payment or the cash). This seems like a pretty safe, well-established assumption. At the same time, experienced loan officers will tell you that it does not mean most consumers do not want to understand the mortgage. The assumption that someone is not motivated by a mortgage does not mean they prefer to know nothing or won’t respond to incentives.

One of the biggest assumptions built into our industry over years of low rates is the value of a lead relative to time.

The farther out a person is from buying a home, the less valuable the lead…or so the theory goes. Many digital online lenders, especially those that grow during the refinance boom (and perhaps even one where I used to work), seemed to have an unspoken assumption about purchase leads. The assumption goes something like this: consumers are fickle and there’s too much risk they are not serious, won’t close or will get poached by a real estate agent to another lender, so I cannot spend time or money too far in advance of knowing that I can convert. The problem with that assumption is that the theory becomes a self-fulfilling prophecy. Failure to invest in meaningful value until the last minute essentially assures the outcome.

For loan officers working a purchase pipeline over the last year perhaps for the first time since 2018’s increased rates or even for the first time in their career, basic assumptions are probably built into the workflows of the industry. New tools and other strategies have launched and are growing but these still require a commitment to a new assumption – nurturing a relationship will be worth it.

The best way to lower the risk of this high value activity is new technology based on tried and true work. It’s not fintech tools OR building trust with clients and referral sources. It’s both and that’s why it sucks (or to put it better) – that’s why it’s such hard work. For instance, there are a variety of tools, options and products that many real estate agents do not or cannot introduce.

Proactive finance, as I mean it here, is the ability to establish an ongoing homebuyer program that looks at credit availability and credit eligibility in new ways. Of course initially you have to answer the primary question – what can I afford? From there, though, there is an evolving credit review that updates as the consumer provides more data and as they shop. This allows you to evaluate and provide information on the GSE’s positive rental payment programs. Approving first-time homebuyers based on their bank data for 12 months of rent payments. This type of proactive approach also allows you to introduce programs such as co-ownership (applying with 3-4 housemates) or shared appreciation (lowering the down payment and monthly payment with other contributions). These can be new or complicated when presented weeks or days prior to shopping.

It turns out that consumers do want trust but, even stronger than that, is the feeling of losing an advantage. By providing an on-going, “already done” credit application with you, buyers will not want to lose the preapproval or timing advantages that come from “verified approval.” What’s more, the options and flexibility for programs, loan options, and new innovations are also incentives. The more you know, the more they know. Working proactively together eliminates much of the risks based into old notions of lead gen. For the next generation of homebuyers and LOs, it’s worth it.

Turning Affordability Challenges into Opportunities for Growth

Rob Chrane, Found & CEO, Down Payment Resource

Regardless of market conditions, saving for a down payment on a home remains a major obstacle for many aspiring homeowners, especially first-timers. Down payment assistance (DPA) programs can be a game-changer for buyers—and for the mortgage professionals who leverage them effectively.

There are now more than 2,400 homebuyer assistance programs nationwide, with at least one in every U.S. county. Some are funded by state and local housing agencies, while others are funded by nonprofits. The amounts offered by these programs range from about $2,500 up through $65,000 (or more!). Funds often can be used beyond a down payment, such as to buy down interest rate points or help with closing costs. There’s also flexibility in property types to support the purchase of manufactured housing or multi-family properties.

Originators who understand how these programs work, and can guide borrowers through the process, become a problem-solver and trusted advisor by helping them buy months or years faster so they can start building generational wealth sooner.

Generate More Referrals from Industry Partners

Real estate agents, financial advisors, and housing counselors often need originators who understand and actively promote DPAs. As a matter of fact, the number one question we receive from agents is “how do I find a lender that works with DPA programs?” By becoming a reliable resource for these partners, originators can:

• Strengthen referral networks with agents who want to close deals faster by working with informed lenders.
• Build trust with housing agencies and nonprofits that seek lenders to help their clients navigate financing options.
• Stand out among financial professionals who want to recommend originators that serve borrowers with specialized needs.

In a market where competition is fierce and borrower expectations are high, mortgage professionals must go beyond simply offering loans—they need to provide solutions that address buyers’ real challenges. And, originators who position themselves as experts in down payment solutions are more likely to succeed in both good times and challenging markets. So, if you’re looking to boost your business and stand out in a crowded field, start by making DPAs part of your strategy. Your clients—and your bottom line—will thank you.