Every market has its challenges but when mortgage rates are going up many mortgage professionals tend to get concerned. How can you continue to sell and keep your pipeline full when interest rates are on the rise? Here are a few areas to focus on:
Varied Product Offerings
A wide selection of mortgage programs helps in several ways. You are more likely to have an option (or several) for each potential borrower that comes your way. When you can help someone no one else can they are much more likely to be thankful for your service and refer friends and family to you in the future. And so will their real estate agent! Should you have several good choices for a well-qualified borrower you can give them a few alternatives to weigh – potentially eliminating the need to shop around with other companies. People want options, but you may be able to fulfill that need simply by offering a number of programs to choose from.
Spread the Word
You can help customers wanting to finance fixer uppers, manufactured homes, and investment properties…but do the home buyers in your area know this? Get the information out via social media advertising, email newsletters, and pay per click advertising. You’re likely to find that this new marketing is much more effective and affordable than things you’ve tried in the past. And of course it’s tough to beat meeting people face to face – introduce yourself to local real estate agents, and participate in area networking opportunities.
Educate Your Customers
Watching rates climb while searching for a new home can be stressful. While of course you should be clear that no one can predict with certainty how interest rates will behave you can share with them a basic overview of what influences the market, and what is coming up in the near future.
Are they anxious to lock in a rate but just haven’t found a property that meets their needs? Perhaps they could consider homes that need a little work or updating and find what they’re looking for, financing the purchase and the renovations with a FHA 203(k) Rehabilitation Mortgage. Have customers who are building? With our One-Time Close, Construction-to-Permanent loan the rate is locked at the start of the process, eliminating that waiting game during the building phase and potentially watching rates continue to climb.
Photography by [Rancz Andrei] © 123RF.com
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