Why Borrower Experience Will Be a Major Differentiator in 2024
The mortgage sector is often referred to as the “smallest big industry.” What this means is that despite thousands of lending institutions and trillions of dollars transacted, the mortgage industry is built on deep relationships and human interactions. This sentiment not only holds true for the professionals within the business, but also the end customers—the home buyers who look to their lender for guidance on market conditions, loan options, financial implications, and more.
Americans seeking homeownership have been through a turbulent several years. Those who missed out on sub-3% rates in 2020 and 2021 have been long sidelined by rapidly escalating lending costs. Those already in homes have been immobilized, unable to make the financials of a new transaction work. And everyone has felt the crunch of historically high home prices and historically low inventory.
As 2024’s market offers the first signs of relief to the American public, it’s crucial for lenders to step up, offering support, education, and resources. Overwhelmingly, the growing segments of prospective buyers in today’s market are historically underserved demographics who may not feel confident in their knowledge of lending options or the mortgage process. These include single women, first-time buyers, and 18 to 24-year-old buyers, who have increased by 73% over the past two years, according to Maxwell data.
Taking on an advisory role to build trust
Not only do prospective borrowers like these need help gaining confidence in their grasp of the lending experience, but they need individualized support in understanding the best loan products for their unique needs. Increasingly, today’s borrowers—including outside-the-box income earners, such as gig workers—have an array of financial realities and may be interested in non-conventional lending products, low down payment options, or first-time home buyer programs. To connect with these audiences, lenders need to take a consultative approach, forming a relationship with potential customers and earning their trust.
“In 2024, borrower support and experience will be major differentiators to lender success,” says Robert Ross, Maxwell Head of National Sales and a 23-year industry veteran. “While it’s tempting to focus solely on driving loan volume right now, leading with a sales-heavy strategy won’t bring long term success. Rather, lenders should invest in a borrower-focused point of sale while ensuring team members take on an advisory role, guiding their customers with strong product knowledge and a people-first approach.”
Maxwell Point of Sale, for instance, delivers a game-changing digital experience to help you attract, convert, and retain borrowers—including those who need additional support in the lending process. Including mobile-first functionality, a loan application that auto-fills required fields, and bite-sized sections that don’t overwhelm, Maxwell Point of Sale improves borrower confidence. Plus, the intuitive technology empowers your team to spend less time facilitating the process and more time understanding your borrowers’ financial realities and lending needs.
Learn more in Maxwell’s new 2024 Lender Playbook: 4 Tips to Drive Profitability in a Recovering Market
Want to get more advice on catering to home buyer needs and earning valuable borrower business this year? Download our new eBook to learn:
- The reasons why 2024’s path to market recovery won’t be linear, including how this year’s election could impact interest rates
- How to ready your lending business to capture intermittent volume as it reemerges without the burden of fixed costs
- Why access to real-time data insights will be a major differentiator in 2024—and how lenders can gain those analytics cost effectively
- The game-changing benefits of reinvesting in borrower relationships at a time when home buyers need lender support most
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