Over the past year, purchase loans have dominated the Origination Market. According to most experts, this trend should continue. With total originations expected to decline it’s important that Lenders begin to focus more on reaching prospective home buyers.
Developing New Home Purchase Leads is different than working the Refi market. Purchase leads are slower to develop and often require Lenders to spend more time educating their prospects. Knowing more about a prospect’s individual situation will certainly help that process. Having information about a prospect’s Age, Income, Marital Status, Length of Residence, Presence of Children and Credit Worthiness will greatly improve your ability to convince him of the value of your services.
It is also important to develop a logical profile for the Prospective First Time Homebuyer. Not every renter is worth marketing to. A single 57 year old individual living in the same rental apartment for the past 17 years is not a likely candidate for purchasing a house. A young two income family currently renting an apartment for $1000/month could actually save considerable money buying a house and would probably respond favorably to the right marketing offer.
Renters are not the only prospects for home purchasing. “Move-up” homeowners looking to accommodate a growing family or higher income as well as “Move-down” homeowners – generally empty nesters who need less room than before are also excellent prospects. The key once again is knowing your prospect’s situation and targeting it accordingly.
Prospective Homebuyers respond well to direct mail. A colorful postcard with an eye catching intro statement about the advantages of homeownership has proven itself to be an important component in a successful marketing campaign. Invite the prospective Homebuyer to a Home Buying Seminar or offer them an opportunity to obtain a Pre-Qualification Letter which will give them an advantage in any bidding situation.
Once the snow melts, homeowners will begin listing their homes in greater numbers signaling the ideal time to focus on the homebuyer market.