Buying a home is a big purchase. Possibly the biggest a credit union member will ever make. Yet when it comes time to pull the trigger on financing, today’s home buyers are not shopping around for rates, products or programs. Most don’t even talk to a lender until much later in their home buying journey. 

  • The National Association of Realtors® estimates that only 7% to 8% of buyers turn to a lender as their first step in buying a home. 
  • A recent Fannie Mae study showed that researching mortgage options and meeting with lenders were among buyers lowest priorities. 
  • A 2013 study released by the Consumer Protection Bureau showed that 77% of borrowers applied for a mortgage with a single lender versus filling out applications with multiple lenders or brokers. Just ONE! 

Shocking, right? So what do home buyers want?

It’s pretty simple: they want a home. As a result, home buyers spend much of their time focused on the home search and very little time focused on the mortgage. This makes it hard for lenders to compete because the window of opportunity to identify borrowers who are ready to talk about financing is extremely narrow. And if you’re not the first to the table, you’ll likely never be invited. 

As more buyers enter the market with a ‘one and done’ application mentality, it’s important for credit unions to get to the home buyer first. CUs need to build a purchase mortgage strategy that not only puts them in front of members ready to buy now, but also builds a pipeline of buyer leads who will purchase in the future. 

Learn more about how to build a pipeline of buyers here.