Here’s How Mortgage Lenders Can Stand Out to Savvy Home Loan Customers

One of the more interesting data points to come out of our 2023 Consumer, Homeseeker research was the change we found in the first-time buyer component of the market.

In 2022, 53% of home sales were made to first time buyers. As our professional consumer research partner looked into the mix of consumers seeking homes this year they found only 20% to be first-time buyers.

This has serious implications for lenders who want to compete for a share of this shrinking mortgage market.

Who is the savvy home loan customer?

While some experienced loan officers might applaud the opportunity to work with more borrowers who understand the process a bit better, and who will thus make their work easier, there is something else they should consider.

These home loan applicants have been around the track at least once. They know where the curves are and they want to work with a lender who can make the process easier on them. How will they decide which lender to choose?

Our data shows that 80% of the homes sold this year will go to experienced home buyers, 47% of whom said they will apply with three or more lenders before signing for a new mortgage. Only 18% of consumers we asked told us this last year.

Their plan is to let a number of lenders start the process and abandon them as soon as they make a mistake.

If your typical pull-through rate is around 50%, which new data suggests that you’re more likely to see that fall to south of 20% this year.

What will that do to your bottom line? It ain’t good. You need a better way to get loan applicants to stick with you through the process to the closing table.

How to stand out in a more competitive market.

Anytime loan volume falls from near $4 trillion to less than $2 trillion in the space of 24 months, you know you’re going to see a more competitive market. But add to that the fact that consumers are pitting lenders against each other and the only way to succeed is to really stand out from all competitors.

Consumer credit offers you that opportunity. Here’s how:

When asked, 66% of consumers said they were regularly checking their credit and about half of them think their credit is okay, but wouldn’t mind increasing their score.

But get this: when we asked them if we could show them how improving their credit score could help them get a better rate, suddenly 87% were very interested in having that conversation. Our data shows that when consumers are offered a plan to increase their credit scores — which we found only happens about 35% of the time — 70% will follow through and do it, earning themselves a better score and a better deal on their mortgage.

If you’re the lender offering loan applicants a better deal on their next mortgage, do you think you’ll have an edge over your competition? You better believe you will.

Find out how easy it is to set yourself apart from other lenders, increase your pull-through and win more satisfied mortgage borrowers by reaching out to us today. Check out our full webinar on this topic to learn more about Homeseekers.