It’s nearly February and a new year, with new goals, is upon us. The credit union purchase mortgage market changes frequently, but the beginning of the year is still a great time to take a step back and make plans that will help achieve your home loan goals for this year and the coming years. 

With that in mind, we are sharing our TOP 3 TIPS to grow your purchase mortgage business and increase your bottom line this year.

  • Keep Your Mortgage Pipeline Going Strong - It’s no secret that many credit unions have been enjoying a feast of refi’s and saw great success. But now that pipeline is slowing down and many CUs are pulling purchase mortgages off the back-burner. As our own Tandy Vincent shared in a recent article in “Credit Union Business, creating the right member touch points at the right time  is key to building mortgage pipeline success. As she explains it, “while the refi purchase path is fairly quick and succinct, the journey of a homebuyer is quite lengthy and task-driven. Failing to engage with homebuyers early in the process means they are less likely to be in your pipeline later when they are ready to find a mortgage.” She shares insight as to how your credit union can build a strong mortgage pipeline that can serve your credit union for years to come in the article here

  • The First-Time Home Buyer - It’s been awhile since the real estate market growth was driven by first-time home buyers, perhaps even since the very early 2000s. But this year and next are being seen as the years for this “comeback.” The long-awaited Millennials may finally be ready to really impact the market. Although their student loans and shaky job prospects have held them back from a home purchase in recent years, many of them are over 30 and ready to take the plunge. NAR’s chief economist, Lawrence Yun, recently shared with MarketWatch: “The gradually expanding economy, multiple years of steady job creation and mortgage rates under 4% all contributed to sizeable interest in buying a home this year.”  So, the key for credit unions will be to help the first-time home buyers prepare for their new home purchase and with their anticipated challenges, such as down payments and finding a home. As stated by 24/7 WallSt.com, “In 2017, affordability and qualifying for a mortgage are expected to be more important issues, especially among first-time buyers. Coming up with a down payment and finding a house within their budget are also hurdles for next year’s buyers.” Our CUSO can partner with your credit union to offer solutions to these challenges through our HomeAdvantage program—find out more here.

  • Gen Z is Now on the Map - The next generation is officially on the real estate radar, Gen Z. Now hitting 18 and going off to college, they already outnumber the Millennials by at least one million and it’s definitely not too early to begin reaching this market and getting in early with this group. Although they may be focused on college, many are already thinking of owning a home, as stated in a recent article, “Gen Z ‘seems to prize home ownership like no generation since their great-grandparents,’ says Time Magazine. Four in five teens rank owning a home as the most important factor in achieving the American Dream, while 97 percent see home ownership in their future.” Read more insights about this generation in this article on PWSC.com.

If you enjoyed reading this, check out our blog post on Walking the Path to Purchase with Home Buyers.