Several components play into the fact there's no easy sailing for mortgage professionals.
2017 poses especially unique challenges. Being prepared with the right tools and education is key to being successful in today's mortgage industry.
Here are five 2017 mortgage trends that can disrupt a mortgage pro's success, and a game plan for keeping your goals on track, focused, and productive.
Trend #1: Automation obligation.
With more Millennials entering the home buying market, outdated, non-mobile, and unwieldy processes will send mortgage professionals to the back of the line. These newer consumers demand information and assistance be available to them NOW. As they are expected to be roughly a third of this year’s homebuyers, ignoring them will most likely derail a mortgage professional’s goals, and decrease his or her paycheck.
Game plan: Embrace automation. Educate yourself on using social media to connect with potential clients. Push your company to maintain a highly mobile website, and offer ways for Millennial home buyers to educate themselves on and enhance their mortgage experience.
Trend #2: Bottom-line profit frustration.
From increased paperwork requirements to the new trended data credit report costs to more costly appraisals and expensive compliance processes, it seems that once-hefty profits are chipped away until mortgage professionals are left with only a bite of the pie. Don’t expect this to change in 2017.
Game plan: Minimize costs with efficiency. Sharpen your pencil and closely monitor where the money is flowing out. Is there unnecessary waste? Are you losing deals that should have closed? While some costs are not within your control, maintain your optimum profit margin by managing and mitigating those that are.
Trend #3: Valuable vendor situation.
Today's mortgage industry suppliers become even more important in furthering your success, or hindering it. Those who are not proactive, unorganized, or generally uninterested can cause you to lose loans that otherwise would have become profitable business with possible referrals.
Game plan: This trend demands you review current vendors. Who is helping you maximize productivity, efficiency, and success? Which ones offer insightful value-add information and helpful education about upcoming industry changes and trends? If you can't think of instances where vendors have assisted you in your mortgage business, it may be time to look for new ones.
Trend #4: Credit conundrum.
In 2017, mortgage professionals will connect with more credit invisible consumers than ever. While these potential buyers may be ready to purchase, finding options for them may limit success because of a lack of credit history.
Game plan: Put on your advisor hat and educate them on their credit. Help them find options to build credit, and uncover alternate loan opportunities for them to be able to buy. While this takes a little extra work on the front end, it will build loyalty and pad your paycheck.
Plus, your extra customer service helps you come out on top of the…
Trend #5: Competition exasperation.
2017 is shaping up to be a big year for home buying, but rates may inch up and inventory may shrink. Since there is only a certain number of customers, mortgage professionals who fail to woo the right ones may see their goals go unattained.
Game plan: Dig your heels in to close every loan that comes your way. Whether it's working with a different segment of consumers, finding new investors, working with the buyers on a smaller loan, or helping them increase their credit score, it's essential to your bottom line to push through the obstacles to make it happen. Because your competition most likely is.
While 2017 mortgage trends may create a challenging year, the good news is there are still ways to make strong profits and reach your goals. By being prepared for today's mortgage industry, you can come out ahead of your competition and enjoy a productive, and profitable, year!