Today's Down Payment: Tomorrow's Target
Even though the misconception that it takes a 20% down payment to purchase a home is prevalent, there are several market facts that offer great prospecting and production opportunities for mortgage companies, loan officers and their referral partners:
- The U.S. homeownership rate has reached a 3-year high according to the U.S. Census Bureau
- Low down payment loans with private mortgage insurance (PMI) were the fastest-growing first time home buyer products in the fourth quarter of 2017
- The latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index showed 3% annual gains for December 2017, up from 6.1% the previous month
- Home prices grow over time, even with market fluctuation, inflation and other economic conditions factored in according to U.S. Census Bureau figures dating back to 1940
All these stats make for a target-rich prospecting environment for repeat and referral business: An increasing number of homeowners with PMI means more people will need the insight and expertise of mortgage and real estate professionals to show them when – and how – to eliminate that portion of their monthly housing payment. This confluence of conditions makes sharp, consistent post-close marketing critical.
Doing a great job for a borrower is the most basic aspect of developing and growing a solid practice; however, memories fade as time passes, so repeat and referral business takes more effort. Simply reminding past clients about a great experience may not be enough to motivate them to mention you to a friend or coworker looking for a mortgage; however, the fact that you were instrumental in saving someone tangible dollars catapults you – and your service – to an entirely different level.
Creating customers for life requires remaining visible in your past clients’ lives. What’s your post-close plan?