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It may be hard to believe, but many consumers still believe they need at least 20% down and a 750-credit score to even think about buying a home. That’s not only among first-time buyers.
Others, including repeat buyers, are intimidated by the home buying and financing process. So many new rules, so much paperwork, so much time and effort. It can be quite overwhelming for even the most experienced buyers.
With rates and home prices rising, many consumers believe they are blocked out of today’s home buying market. However, there are a myriad of loan programs out there, in addition to the traditional FHA programs, that offer consumers their opportunity at the American Dream.
Somebody needs to get the word out and somebody is! The MBA is working as a member of the newly formed Homeownership Collaborative to increase the use of homeownership education and housing counseling services to educate more consumers on how to become homeowners.
The Homeownership Collaborative, a national collaboration of lenders, investors, real estate agents, and housing counseling agencies, was formed in July 2016. Their goal is to raise awareness among consumers about working with housing counseling agencies to better understand homeownership.
These agencies can provide a wealth of information and education to prospective homebuyers on programs, loan qualification, and the process of buying and financing a home.
They can also help consumers better understand the buying process and responsibilities of ownership helping them to more quickly become ready to become a homeowner.
Working with area homeownership counseling centers presents another opportunity for lenders to obtain new business.
Lenders can offer their services in assisting these centers in prospective homeowner counseling and education while building a base of newly qualified borrowers.
These are borrowers who will better understand the process making it easier and quicker to process, approve and close their loans, reducing the time and expense associated with loan originations.
This provides more time for lenders to analyze the borrower and review information to help them avoid costly loan defects and delays. The good old win-win for everybody.
In the new purchase market, Realtors will be clamoring for qualified buyers to help them get to the head of the class for sale of the limited number of homes available.
No one wants to waste time, effort, and money, working with a potential buyer who will not qualify.
Educating and pre-qualifying consumers will improve a lender’s chances of garnering more business from more Realtors and builders.
Business will be tough in 2018. Don’t leave any stone unturned. Better educated consumers make better home buyers, borrowers, and homeowners.
MBA and members of the Homeownership Collaborative are doing their part. It’s time for lenders to step up and do theirs.
Now, all we need is more affordable homes for sale.
