How Brokers Can Delight First-Time Homebuyers


broker first time homebuyer

As a broker, you help many different people prepare for property purchases in their near future. You weigh income and investment capital, assess opportunities, and help clients craft loan applications that are prepped for acceptance.

Of course, the task is different for each buyer who comes your way.

While many home buyers are experienced investment buyers somewhere between their third and twentieth purchase, you also occasionally have the honor of helping a person or family with their very first home buying experience.

Working with first home buyers is unique compared to working with those who have been through the process before.

First home buyers are almost always buying for themselves and are far more likely to make well-known mistakes like heart-over-head or taking out a mortgage too big for their income to cover. That is why your assistance is so vital. A first home buyer’s need for good agent advice is greater, and therein lies your opportunity to stand out as a smart choice for first home buyers who are looking for all the professional advice they can get.

Today, we’re diving into the many ways that a savvy broker can offer superb servicing for first home buyers and how you can stand out in a competitive market by doing so.

1. Identifying a First Time Home Buyer’s Unique Needs As a Broker

The first step is to identify how first home buyers’ needs differ from others who you may have assisted in getting a home loan. Investors have been around the block and already know how to assess a home’s value and how much they can afford.

Refinancers already have many factors set and are simply looking for the best deal. But a first home buyer is new to the entire industry of real estate and related finances.

A first home buyer doesn’t necessarily know what a “good” versus “bad” interest rate is on a mortgage or how to judge whether mortgage terms are favorable. In fact, many have not yet fully grasped the concept of closing costs and just how much that can eat into what they are prepared to spend on a home.

As a real estate finance expert, you can offer so much more value to first home buyers than simply drawing up a loan application.

Your expertise could help first home buyers truly understand how their savings, income, and dream-home all fit together and what their costs will realistically look like both at the time of purchase and years in the future when paying down their mortgage.

This is advice every first home buyer very much needs to hear.

2. Informing Buyers About Grants and Support Opportunities

Another thing you can do to differentiate yourself from other brokers is to help first home buyers receive the grants and support designed just for them. This is something first home buyers often don’t even know that they need to ask about.

Buying a home seems like such an independent process that it often never occurs to them to ask about grants or the kind of community support that is often available for a family settling down in the area.

You can not only inform first home buyers of their government and local grant options, but also help them draft applications and know what to do to gain benefit if the grants are provided.

3. Helping Customers Find Their Dream Home Beyond the Loan

For first home buyers that have come to you to prepare for a mortgage pre-qualification, you can personalize your services to offer so much more than just advice on applying for a loan and how to get the best interest rate.

First home buyers are often receptive to advice from all directions, and you know better than anyone what can help buyers save money or cause them to lose money in a purchase.

Talk to your first home buyers not just about their mortgage, but about their dream home.

You can give pointers on how listing price gets calculated into the final price plus closing fees. You can advise first home buyers to go all-out on inspections to ensure that their home has no surprise costs.

Even more personally, you can help first home buyers truly understand their income and the homes they can afford. You can help them pour over their personal finances and understand how their income, savings, and mortgage terms all work together to define their home buying opportunities.

4. Consulting on Lender Mortgage Insurance (LMI)

In select cases, you can also help buyers understand when Lenders Mortgage Insurance (LMI) can be a smart choice. With LMI’s ability to help buyers borrow on the value of the home itself, which can be a tricky choice for some and the ideal way to buy a dream home for others.

But LMI is also something that many first home buyers don’t know about and don’t understand. Whether your buyers ask you what LMI is or they are worried about not having enough downpayment for a dream home, you can help them understand when LMI is a smart option to consider.

Buyers with a significant income don’t always have the time to build up a hearty downpayment, which is when LMI can make the difference. When buyers are confident that their income can cover all mortgage payments, this is a practical choice to help overcome the downpayment requirements. Especially when buying a home is a rushed experience due to life circumstances that prevent time for savings.

Brokers are in a unique position in the real estate business to make loans happen and help first-time homebuyers who haven’t been through the process before. You can stand out from the crowd by building your brand on a superb first home buying experience and providing personalized consultations and advice not only on loan applications but also on smart financial choices from the beginning to the end of the buying process.


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