Of the 70% or so of all homebuyers that will require mortgage financing to buy a home in 2022, the National Association of Realtors estimates that 52% will put down less than 20% on their home purchase.
Believe it or not, that’s a huge opportunity for mortgage originators. Brokers and loan officers who understand this will do more business next year, even though there will be less business out there.
What’s the big deal about loans that require PMI? It gives loan officers the opportunity to quote it for their borrowers, which gives them the opportunity to win their trust.
Most originators will quote one or two of the six possible sources of PMI for borrowers that require it. Borrowers don’t know anything about what private mortgage insurance should cost and so they won’t think anything of it…unless another LO provides quotes from more sources.
We know that mortgage borrowers are getting pre-approvals from a number of lenders and then going with the one they think will get them the best deal. How do they know? They don’t really, but they go with the LO they trust.
Trust is that magical thing. It can turn a prospect into a customer and a customer into a loyal source of referral business. But the best thing it can do is turn the LO who earns it the one who wins the business.
As former mortgage loans officers, we realized that saving borrowers money on PMI was a game changer. It easily put us into that “most trusted” position among all of the lenders the consumer would seek information from before taking out a new loan.
Unfortunately, we didn’t have time to do the research beyond getting a couple of quotes and neither do you, but don’t let that stop you.
PMI Rate Pro lets you quote all of the sources of PMI. They’ll get the best price and, even more importantly, they’ll see you as the LO they can trust.
Nomi Smith is Co-Founder and Chief Executive Officer of PMI Rate Pro, a company she founded after spending years as a mortgage loan officer frustrated by the difficulties involved in quoting Private Mortgage Insurance for borrowers. She can be reached at [email protected].