0
0
Today, to reach and service more potential homebuyers, lenders need to embrace technology with the use of an online application process. Millennials expect it, and others are starting to get used to it. However, with refinancing opportunities dwindling lenders need to once again concentrate their production attention on the purchase business.
According to a recent Freddie survey, that business still belongs to the Realtor. Based on responses from Realtors, the survey reported that 84% deal with their select group of lenders. A little more than 70% will refer their buyers to only one to three mortgage lenders. An exclusive club you might say.
Realtors say their decision to use a lender is based mainly on the ease of doing business with them, the lender’s reputation and a strong business relationship. No mention of lowest rate.
About 76% of the Realtors surveyed reported that their buyers often use the recommended lender. Those Realtors selling more than 20 homes per year, that number increases to around 87%. Seems most home buyers trust their Realtor when recommending a mortgage lender. Are they recommending your company?
With Refi’s declining, it may be tough to generate new business from the purchase market if you are not on a Realtor’s preferred lender lists. The challenge now is how do you get on that list if your originators have been concentrating on refis for the past 10 years? Hard work, that’s how.
If your LO’s aren’t already doing so, it’s time for them to get out there and start banging on some doors. Identify the players and concentrate time, marketing and good old fashion service on those who list and sell the homes. Buyers are not going to be calling you for loans, you’ll need to go out and get them. That idea might be foreign to some originators.
However, opportunity knocks. About 50% of these same Realtors surveyed said they are less confident when it comes to educating their buyers on the mortgage process, and much more, about 70% say they are uncomfortable discussing down payment assistance programs with their buyers.
With the challenges facing home buyers today, you can see why Realtors need the help of qualified lenders when it comes to financing options. Remember, what they are looking for in a lending partner
- Ease of communication and doing business (Mobile apps and information)
- Reputation (Customer Service does matter)
- Business Relationship (Be there when they need you. Do the tough deal.)
It’s time to get back to generating new business the old way; from Realtors. Are your LO’s trained and ready to service the needs of the Realtors and their buyers. Are you ready to service the needs of your LO’s?
