CU Realty Video»
Tower FCU: HomeAdvantage™ Delivers a 70%
Mortgage Pull-Through Rate
Barry Stricklin, SVP, Lending at Tower FCU, discusses how HomeAdvantage helps the
Maryland-based credit union establish First Point of Contact™ with members interested
in purchasing a home.
At Tower Federal Credit Union, mortgages are a pivotal product in terms of developing a long term relationship with members. For nearly ten years, Tower has partnered with CU Realty to provide its members with all the tools and resources they need to purchase a home. From finding a home to financing it, Tower members have counted on their trusted financial partner—their credit union—for their real estate needs.
"When a member uses HomeAdvantage to purchase a home, we capture that purchase mortgage transaction 70 percent of the time. I don't have any other channels that even come close to that success rate," according to Stricklin. "And we know that members who have their mortgage with Tower purchase four to five additional products or services."
Power of the Internet
With well over half of homebuyers today starting their home search on the internet, identifying members interested in purchasing a home is a challenge. HomeAdvantage has helped Tower to reach out to members well before they would normally explore financing options.
"Our members are out there looking for homes, but without a first point of contact
strategy we would never know that because they haven't come in to the credit union to get prequalified for a loan. But they're out there using the internet to shop," says Stricklin. "Many will run across a real estate agent as a result of that. Without the awareness and engagement we get through HomeAdvantage, we would lose out on the opportunity to assist our member and a chance to earn their mortgage business."
Real estate agent relationships
"We're all looking at ways to create relationships with the real estate agents...that's a very difficult thing to do," notes Stricklin. "HomeAdvantage provides Tower with a truly turn-key network of qualified agents—vetted, trained and ready to serve our members. When I look at the time it would take us to build that type network of real estate agents, we would spend an exorbitant amount of time and resources. With HomeAdvantage, we get that right off the bat. And CU Realty is actively monitoring and holding the agents accountable."
Value and advocacy
The average rebate for Tower members is over $1,500 per transaction. "To someone purchasing a home, an extra $1,500 is a big deal! It helps with closing costs or they walk away with $1,500 that they can then invest in something that they need for their home," continues Stricklin. "Our members really appreciate the value of HomeAdvantage and that helps us build stronger member relationships. It's also a product where a member looks to us and says, 'You know, my CU helped me buy my home.'
and that means a lot to them. It really does create a foundation for a long term relationship."
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