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What a Homebuyer is Looking for in a Lender

Posted by South Dakota Housing Authority on May 10, 2018 9:31:55 AM

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As a lender, your business will ebb and flow based off of the decisions of homebuying borrowers. If potential customers buy into what you're offering, your business can grow in sync. So what are homebuyers looking for in a potential lender, anyway?

Here are four things you should keep in mind when trying to attract new borrowers.

unique value propositions

At all SDHDA participating lenders, borrowers will find the same affordable rates for the same useful loan products. So you may need to offer something that the others don't—it doesn't always need to be flashy or cost-prohibitive, either. Maybe it's chat support or a break on origination fees or even a really great user experience during the application process. Whatever the case, you need a unique value proposition.

Simplified Processes

Another big barrier for many homebuyers is learning the ropes and knowing what to look for in a mortgage. You can set yourself apart and attract more potential borrowers by making the process simple and easy to understand. Take the fear out of borrowing for your customers. Lead with step-by-step, straightforward infographics, and put things in layperson terms to position yourself as a trusted advisor, versus a stoic or "unapproachable banker."

Local & Convenience Balance

When it comes to selecting between a national or regional lender versus a local-specific one, there are pros and cons to both, in a consumer's eyes. While national players will typically offer the user experience and convenience of 24/7 customer service, web-based application and faster approval decisions, local lenders offer face-to-face contact, a brick-and-mortar space and a likelier trust level. So whatever your size, you should balance both. Put special care into making your web experience optimum to hook your busier borrowers, and offer up a personal email address or phone number to connect a borrower with a specific loan officer from the get-go.

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Topics: Lending

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