Helping borrowers gain financial perspective in an uncertain economy
Clients don’t know what they don’t know, and that is especially true when it comes to financial realities.
Which is why economic uncertainty can keep potential homebuyers out of the market.
According to the latest Bank of America Homebuyer Insights Report (PDF), uncertainty among current homeowners and prospective buyers is at a three-year high, with 60% saying they can’t tell whether now is a good time to buy a home or not, compared to 48% two years ago. Despite their uncertainty, 52% of prospective homebuyers are optimistic about the state of the homebuying market, saying it’s better now than it was a year ago.
Helping potential borrowers get anchored in the financial realities of homebuying and the long-term benefits they can accrue can help clear away the fog of uncertainty and indecision and help them make truly informed and wise choices for the future.
Loan officers can be their best ally in this process.
Providing reassurance
The airwaves are noisy with doom and gloom, and although this has always been the case, the noise is more intrusive with a constant barrage delivered on multiple platforms all day long.
A trusted advisor can help a client step away from the noise and provide a more grounded and nuanced understanding of what is really happening. Taking the temperature down a notch or two can help the client focus on the reality of their own situation.
Listening, really listening
It would be difficult to correctly advise a potential homebuyer without the full picture of not only their finances, but their hopes, plans, and ambitions, so a successful loan officer must be a good listener.
Helping borrowers navigate the cost of their mortgage also means understanding where the expense of the house fits within the larger context of the homebuyer’s life and helping them realistically plan ahead for dreams to come.
What if…
If your client is jittery, it might be because they are considering what could happen if they buy a house and their financial situation changes.
A good advisor will consider the “what ifs,” helping the client understand the many ways they can create a strong financial base from which they can successfully meet potential headwinds. It’s not about being dismissive of the future but strengthening the client’s knowledge and financial understanding in order to be well-prepared for any eventuality.
Growth opportunity
While first-time homebuyers may be a bit leery of buying in the current market, a knowledgeable loan officer can work with the client to explore their current financial status and provide them with long-term perspective on the efficacy of buying vs. renting.
Owning a home could be the very bedrock of financial stability, providing tax benefits*, achieving financial goals through home value appreciation, easy access to emergency funds as equity increases, and long-term stability.
Helping young homebuyers gain a broader financial perspective will – in the end – help them make the best decision for their situation and anchor their trust in the loan officer and lending institution that helped them get there.
At Certainty Home Lending, we are dedicated to empowering our staff to become consultants to our customers, finding ways to serve their specific needs through a wide range of lending products and solutions. Contact us today to learn more!
*Certainty Home Lending does not provide tax advice. The consumer should always consult a tax advisor for information regarding the deductibility of interest and other charges in their particular situation.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.