The first time home buyer market place is probably the most critical market place for many reasons
First you have a client who for the most part does not understand anything with regard to buying a home. They have no understanding of the market place or any aspects of the loan process. Not only is it important to help them find a home or get approved for a loan, but as well, advise them in there decision with regard to location as it pertains to potential gain in equity as well as understanding the different types of loans that are available and what the long and short term financial affects of these loans are.
In a lot of cases this buyers will be limited to certain loan programs as well as the type of home they can afford. Many of this buyers may also have issues with credit since they are either just establishing there credit or have not bought a home do to credit issues and have rented for a number of years thinking they could never by approved.
Many of the first time home buyers I work with fall in the latter category. This is a huge market place. Even in slow times there are a lot of people who just don’t believe they will ever qualify for a home, so first time home buyers that have some credit issues can be a good source of business. Most of the time it is a simple process of reviewing the credit report and making some corrections to elevate the credit scores. I have found that these types of buyers are also extremely grateful once you help them achieve the goal of owning a home and in most cases can be your greatest source of referrals. My experience as a certified instructor in credit retoration for Central Michigan Unversity in 2002 has proven to be a valuable tool in working with credit challenged clients and raising scores 50 to 100 points in 30 to 60 days.
When working with a 1st time home buyer it is important to educate them in all aspects of buying a home. The goal for the first time home buyer should be to continually improve there equity position as well as there personal asset accumulation. I have worked with many first time home buyers that went from there first loan being a two year fixed sub prime loan to a conforming best rate situation after the 2nd year due to continued mentoring of that client. With a first time home buyer our job never ends. We most continue to provide them with education on credit, budgeting and resources for establishing investment accounts, anything that will help them grow personally and financially.
My process for working with a first time home buyer also provides an exit strategy that will occur 2 to 3 years (2 years if sub prime) after the loan is completed. At that time frame the client is usually in a better position as far as the type of loan they can qualify for and now can really start to take advantage of the many different strategies for creating wealth thru proper management of there home equity and mortgage.
In closing, if you have opportunity to work with first time home buyers understand that they have special needs and they deserve our undivided attend. For them this is the start of a life long journey and you as a mortgage lender or real estate agent have the ability to create a successful client how’s loyalty will be proportionate to your efforts to help them grow.
For more information on first time home buyer programs, credit restoration or equity management contact; Mark Bustamonte, Certified Mortgage Planning Specialist with Mortgage Sources Corp.
Certified Mortgage Planning Specialist
Mortgage Sources Corp (Licensed in 35 States)
866-840-2240 Toll Free
573-636-2896 Direct Office