Last evening was myCUmortgage’s annual holiday party. As it is every year, the event was well-attended and provided the experts of myCUmortgage the opportunity to relax, spend time with their “work families” and celebrate all we’ve done over the course of the year to make our partners GREAT mortgage lenders and help more credit union members with homeownership. I like to keep a low profile at these events, so I hung out discreetly near the pasta station. Hopefully, no one was alarmed at seeing what looked like a blue fettuccine noodle, as it was only one of my tentacles I failed to contain.
For those experts who happened to spot me, I gladly took the time to wish them Happy Holidays and partook in some jovial conversations. One expert looked a bit flustered as he came in, so I asked if everything was okay. He said that it was — he was just unhappy with the weather. Here in Ohio, we had a cold front move through that brought with it some abnormally gusty winds. I knew it has been windy all day because I could hear the whistling coming from the exterior vents of my spaceship.
But it wasn’t just the weather that upset him but rather what the accompanying winds did to his holiday decorations. To set the stage for my readers, I must point out that this individual likes to really decorate it up for two holidays in particular: Halloween and Christmas. These decorations include towering objects that can be seen from blocks away. Unfortunately, these decorations and high winds don’t mix.
He explained to me that in the fall when we had hurricane force winds which were completely not the norm in Ohio, he had to take down most of his decorations and, unfortunately, had one seriously damaged. Then, he had to put them all back up. Last night, he had to take down a portion of his holiday display and noted that once the winds pass through, he’ll be out there again putting them all back up.
The pattern here is evident: Good weather, the decorations go up. Bad weather, they come down. Good weather returns, they go back up with frustration and exhaustion ensuing. This is not all that dissimilar to the journey of new homebuyers.
For many of your credit union members, I think it is safe to assume that homeownership is a goal of theirs, a dream if you will… the American dream. When the real estate and mortgage markets are experiencing “good weather” such as favorable rates and solid inventory, applications for pre-approvals start coming in at a higher rate. This is also the case when individual members have “good weather” working for them (e.g., work promotions, family growth, general raises in income).
Then, the bad weather hits the industry. Rates go up and inventory goes down. Personally, members may struggle with high costs of living, employment changes, credit issues and the fear of the unknown and what the future holds (Will the winds pick up AGAIN, and if they do, then what?!). The result of the bad weather is not only a decrease to incoming applications but also a halt in progress of current applications, most likely those classified at TBDs (a.k.a., properties To Be Determined).
While there are certainly factors that credit union mortgage lenders can’t change or avoid, there is still a lot that you CAN DO to settle and overcome those devastating winds. For example:
- Educate your members on their oftentimes unrealistic fears. We all fear the unknown to some extent, and members who have never been through the homebuying process (or haven’t done it for many years) are apt to be frightened. Do I have enough for a down payment? Is my credit sufficient? Are my earnings sufficient to afford a mortgage? Use strategic marketing and social media campaigns to educate your potential borrowers and bust those myths.
- There are programs and loan products to suit your members’ needs. Be sure your credit union has a good mix of loan products, including both conventional and government loans. This helps ensure maximum opportunities for borrowers. Plus, always take advantage of special programs offered by the likes of Fannie Mae or first-time homebuyer perks. Make sure to include these in your marketing efforts as well.
- Keep communicating with your TBDs. These are borrowers who you’ve already reached and understand the value of homeownership. No matter the weather or the turbulence it can bring, stay in touch with these TBD borrowers through drip email campaigns and integrated communications (e.g., texts, birthday and holiday cards, mailers). Keep them aware of their homeownership opportunities and that you’re there to help once they’re ready to find the home of their dreams.
We all know that the weather is unpredictable and can get scary sometimes, much like life. But, just like the winds that disturbed my colleague’s holiday decorations, they too shall pass, providing an opportunity once again for the decorations to shine bright and celebrate the moment at hand. You are that shining light sought out by your members who are hoping to become homeowners. Keep your light shining bright and they will find you.