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Don’t overlook this powerful demographic.

If you’re a modern mortgage professional, you definitely don’t want to overlook the power of the first-time home buyer. That’s because they made up almost one-third (32%) of all overall buyers in 2023, up from 26% the prior year!

So, if you want to increase your reach and potentially drum up more business, it might be a good idea to provide some value to this dynamic demographic.

First-time home buyer programs are a great place to start. They often come with attractive incentives, provide a chance to connect and build lasting relationships with the client, and the opportunity to differentiate yourself from other mortgage pros.

Sound compelling? Let’s dive into some of our top tips on harnessing the power of first-time home buyer programs to draw in clients who are brand new to the market.

Educating Yourself on First-Time Home Buyer Programs

If you want to successfully serve first-time buyers, you’ll need to become an expert on all the different programs that may be available in your area. 

As a mortgage professional, you’re probably already familiar with a few. Start there. Refresh yourself on any relevant requirements, deadlines, and target demographics. Make note of any conditions that may have changed since your last deep dive.

Then, see if anything new has cropped up. Reach out to local program heads, ask your network for referrals, or compile some research of your own.

The goal is to leave no stone unturned! Remember: You want to become the ultimate expert here.

Educating Your Clients on First-Time Home Buyer Programs

Now you have all the knowledge when it comes to your local first-time home buyer programs. But what about your clients? Financial literacy is so important yet uncommon these days. So, don’t just educate yourself. Make a point to educate your clients, too.

Sit down with clients to share some of the many benefits that these programs may offer, like:

  • More affordable interest rates
  • Low or no down payment options
  • Special offers for veterans, public servants, and student loan borrowers
  • Government-backed loan options

Don’t forget to clarify that the eligibility requirements vary by state and program. Your client may also benefit from speaking with a local HUD-approved housing counselor. You definitely don’t want to needlessly get a client’s hopes up, so double-check that you fully understand the fine print and that you and the client are on the same page before pointing them toward a first-time home buyer program. 

Supporting Clients Through First-Time Home Buyer Programs

Of course, your job isn’t quite over once the client has decided on the right program. You’ll need to continue nurturing the relationship.

Put yourself in the buyer’s shoes: Would you rather work with a mortgage professional who is regularly checking in or one who is elusive? What about one who is helpful and conversational versus sullen or withdrawn?

As clients navigate their programs, make a point to stay organized and in touch every step of the way. This might include scheduling regular touch-bases, organizing and uploading their documents, monitoring their mortgage loan status, and more.

A key point to remember: First-time buyers are much more likely to have questions and concerns than repeat buyers. So, you’ll definitely need to be reachable.

Wrapping Up the First-Time Home Buyer Process

As the process comes to a close, you’ll have one last chance to leave a lasting impression.

Consider asking for a review, specifically related to the client’s experience with their first-time home buyer program of choice. That way, you can use this specific testimonial to target other first-time buyers just like them.

Don’t forget to stay in touch, either. You don't necessarily have to call or text every day. However, adding the client to your email newsletter or holiday card mailing list could go a long way.

Ultimately, just remember you’re building relationships with people. Simply show them that you care about more than the transaction and they’ll be far more inclined to return the favor. 

Harnessing the Power of First-Time Home Buyer Programs

First-time buyers are usually eager and excited! But they might also be a bit anxious, apprehensive, or even confused. Some of them might have even believed that homeownership was entirely out of the question.

By championing first-time home buyer programs, you become their homeownership hero! From favorable interest rates to low or no down payment options, these programs can be downright life-changing.

Simply make a point to educate yourself, educate your clients, support them throughout the process, and wrap up well to tap into this powerful demographic.

And who knows? Before long, you might just be the go-to mortgage pro in the first-time home buyer niche. Regardless, we’ll be here to help every step of the way!

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