In a recent Credit Union Times article written by Richard Gallagher, CEO of Oak Tree Business Systems, Inc., talks about the growth in first time home buyers, and why the industry is struggling for it. Here is a snippet from the article:
"Credit unions targeting first-time homebuyers have the opportunity to increase their lending portfolio dramatically. By welcoming first-time homebuyers into your credit union, you open the doors to a market that continues to grow, even as the home market as a whole continues to struggle."
When you are open to this demographic, you’ll need to do more than send out notices to existing members and allot a small marketing budget to the endeavor. Home buying seminars and other events that benefit both your credit union and the consumer are a must.
Hosting first-time homebuyer seminars and opening your doors to this market will almost certainly result in improvements within your mortgage department. Before you know it, you’ll be busy accepting preapproval applications and purchase agreements as people begin to buy their homes with the knowledge you provided.
First-Time Homebuyer Seminars
Hosting home-buying seminars is an excellent way for credit unions to educate and connect with locals while generating new business. It doesn’t get much better than a room full of people who need exactly what you’re offering.
Many credit unions overlook this diverse approach to lending portfolio growth, but yours doesn’t need to be one of them.
New homebuyers have a lot of questions, and they don’t know who to turn to for answers. Common questions they might have include:
- Is getting a home loan easy or difficult?
- Which type of home loan do I need for my financial situation?
- How much can I afford to spend on a house?
- Is the real estate market in a good spot right now?
- Are home prices going up or down?
- What do I have to do to make an offer?
Hosting home buying seminars for first-timers allows you to answer these questions in an educational group setting. The best part? Everyone gets something out of it.
Attendees get to have their questions answered by a live person. The agent leading the event gets to share their expertise. And the credit union hosting the event gets to bring in new members.
What Documents Will First-Time Homebuyers Need?
From state and federal documents to contractual documents, first-time homebuyers will need a plethora of paperwork before the sale is complete. Below is an abbreviated list of critical documents required for homebuyers:
- Loan Estimate
- Closing Disclosure
- Initial Escrow Statement
- Promissory Note
- Mortgage/Security Instrument
- Local Government-Mandated Documents
- Affidavit of Occupancy
- Truth-in-Lending Statement
- Title Documents
- Mortgage Documents
- Loan Application
The amount of paperwork involved with the purchase of a home can be dizzying to all but the most experienced professionals. Different types of home loans will require varying paperwork. Though not everything on the list above is your responsibility, that doesn’t mean buyers won’t bring it into your branch for assistance.
Paperwork is made to be even more confusing by the range of formats, servers, and applications used industrywide. This might be one of the pain points that scares other credit unions off from catering to first-time homebuyers, but it doesn’t need to.
Working with a forms provider allows your credit union to make the process easier and integrate the mass of documents effortlessly into your system. Such services make the process simpler online, in person, on apps, and even over the phone. What’s more, these services don’t need access to your data, which protects your members from increased privacy risks."
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