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

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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.