For many loan officers, first-time buyers make up an important part of their client base. While all clients require support and guidance from their loan officer, these first-time buyers often have some specific needs and unique qualities. The other important thing to note about this demographic is that they tend to share their experiences. Whether it’s through online reviews or word-of-mouth referrals, if you go above and beyond for a first-time homebuyer, they’re likely to send more business your way. With that in mind, it’s essential for loan officers to be prepared to ace the lending experience with this group. Here are some key things loan officers should consider when it comes to working with first-time homebuyers:
Empathy
Though you may have been through the loan process hundreds of times, first-time homebuyers are new to the game. Loan officers must keep this in mind to succeed with this group. Empathy isn’t about talking down to them or being condescending. It’s about looking at the process from their perspective. This is likely the largest financial decision they’ve made thus far in their lives. They don’t know exactly what to expect from the process, and they are likely somewhat nervous and excited as well. Loan officers need to recognize that. They need to be willing to break down the process and explain what first-time borrowers can expect. They also need to tune in to the emotions of their clients. Some first-time borrowers might be feeling nervous and overwhelmed while others might be feeling eager and excited. Though it can be difficult, loan officers should make every effort to read these emotions and alter their approach accordingly.
Education
First-time homebuyers may have done some of their own research online in advance, but there’s still likely a great deal they need to learn. Loan officers who are willing to be educators tend to excel with this demographic. They realize that educating their first-time borrowers helps everyone involved. It gives their clients the confidence to proceed and can help the entire process move more efficiently. It also helps to ensure that clients make a well-informed decision that they trust. Ultimately, you want to set every client up for success. To do so, you need to make sure they understand all their options.
Patience
While more experienced buyers may get things on the first pass, sometimes first-time buyers require a bit more patience. They may need you to slow down a bit to let them catch up. They may need some time to think things over. They often will have many questions. Loan officers need to be prepared for this and be willing to give their clients the time they need. When clients feel rushed or question if they’re annoying you, they’re not likely to leave satisfied. Ensure these clients that you’re on their team and are willing to do what it takes to make them feel comfortable and confident.
Accessibility
Finally, first-time homebuyers are often in the millennial demographic. This means they’re used to constant accessibility in many areas of their lives. When they start working with a loan officer, they may expect the same. This doesn’t mean you need to have your phone on, ready to answer a call at all hours, but it does mean you need to be flexible. The best way to demonstrate your accessibility without inviting calls to your cellphone at 10pm is to address it clearly and set some boundaries. Explain to first-time homebuyers how they can contact you, what your open hours are, how they can reach you if their need is urgent, and which means of communication are best for certain things. For example, let them know that if they have a quick question, they can send an email and trust that you’ll get back to them within business hours. Let them know that certain hours are for urgent questions only. Make it clear that they can reach you by phone at the office and can schedule a meeting when necessary. Most clients won’t take you up on all of this and abuse your accessibility. Simply knowing you’re reachable is usually enough to put them at ease.
First-time homebuyers are a unique demographic that require a very specific level of service by their loan officer. Acing the lending experience with these clients is particularly important, as they often make up a significant portion of your client base and can help you grow your business. Do you have any other strategies for improving the experience of first-time borrowers? Please share them.
Kirk Brewer
Branch Manager | The Loan Geek | NMLS #150287