If this year has proven anything, it is that some things are impossible to predict. This is especially true for the mortgage lending industry. However, by looking at recent trends we can prepare ourselves for some big moves.
Here are five critical insights MLOs need to pay attention to for the rest of the year.
First-Time Homebuyers Are in Demand
Those in the industry know that all types of homebuyers are good for business. However, many mortgage lending professionals realize that some are more valuable—first-time homebuyers usually top the list.
As an MLO, if you are interested in increasing the number of buyers who are new to the market, you need to adjust your client acquisition strategies to reflect that. Start looking at what Millennials and Gen Zers need. As the largest group of homebuyers currently on the market, Millennials could make it so you find yourself with more business than you can handle.
Sales May Drop in 2020 Compared to 2019
In the spring and summer seasons, home sales usually increase, as homebuyers typically start looking for a new home around spring break with a plan to move during the summer, especially if they have children. For this reason, market predictions usually forecast an increase in sales from spring to the beginning of fall.
Unfortunately, things look a little different this year because of the coronavirus pandemic. Federal and state government shutdowns have not only put a hold on many real estate transactions—these shutdowns have also affected many workers employed by non-essential businesses. Some states have started to reopen businesses, but initial outbreaks of the virus may make those states retrace their steps.
Quick Closing Times Are a Must
The amount of time it takes to close is always important for loan originators. In 2020, though, it is paramount to staying successful.
With faster closings, we have more time to conduct other business that is essential to profitability. Additionally, fast closing times contribute to higher client satisfaction, which is essential for building a business. After all, it’s your clients who are probably spreading the word about whether you are someone others should want to hire.
Technology Has Never Been More Important
Across industries, businesses have never been so dependent on technology as they are now. The mortgage lending industry is no different.
In a competitive market, setting ourselves apart is a key part of growing. One way to do that is to use technology to make things easier for yourself and your clients.
Relationships with Industry Partners Are Key
It’s not only clients who MLOs need to form relationships with to be successful. We must also stay top-of-mind with key partners like real estate agents. Why? Because these potential referral partners could lead to new business. It’s important to understand that even if you are in partial competition with someone, you both can still benefit from a little cooperation.
Are you ready to take your mortgage lending business to the next level?
If you want to learn more about how a relationship with wemlo could benefit you, schedule a demo.