How To Build Volume In Today’s Market
In the current market’s low-volume environment, mortgage originators can capitalize on opportunities by creating specialized loan products tailored to address the unique challenges faced by homebuyers. By designing purpose-built solutions, originators can differentiate themselves and build their business by catering to the specific needs of today’s homebuyers.
According to Mortgage Point, new construction financing and meeting the demand for new homes: According to the National Association of Home Builders (NAHB), in March, 33% of all home sales were new construction financing. That is a significant increase from the 13% average between 2000-2019 in new construction. While virtually all national homebuilders have mortgage divisions, custom builders and small- to mid-size local builders can be an excellent source of purchase volume. Offering one-time close and specialty products that help move-up buyers time the sale of their existing home to the closing date for a new home helps originators to tap into this market segment.
Include manufactured home dealers in your marketing plan if you have financing for buyers who want to put a manufactured home on a lot they are buying or one they already own.
Competing against cash offers … enhancing buyer competitiveness: The prevalence of cash offers in today’s market cannot be overstated, with the National Association of Realtors (NAR) indicating that 28% of home purchases in April were all-cash transactions. This represents a competitive challenge for buyers relying on financing. MLOs can counteract this if they have loan programs providing a cash backup or a buy with cash and refinance later option for consumers. Closing date guarantees can also minimize contingencies, making purchase offers more competitive.