THE ADVANTAGE
Your monthly recap of the most important
mortgage-related news, perspective, and advice
February 2024
4 minute read
We’d like to start by sharing two revealing statistics from recent homebuyer surveys:
- Nearly four out of five people (77%) found the process of shopping for a mortgage to be moderately to very challenging.
- 56% of mortgage borrowers didn’t compare offers from multiple lenders.
Provided someone has access to the internet, finding answers to mortgage-related questions shouldn’t be all that difficult. The challenge is in finding answers from credible and trustworthy sources.
5 Common Questions
With an endless number of lenders vying for your members’ trust, it’s imperative that your credit union knows how to answer the most frequently asked mortgage questions.
Here are five common mortgage questions your members want you to have answers to, as well as a few questions that you can ask in return.
- Is now the right time to buy a home?
While it’s important to understand the current market or interest rate trends, it’s also key for you to approach this question by considering the member’s priorities. The person asking this question needs help deciding if the value (both financial and emotional) of buying a home is worth the cost. That means you’ll need to have a conversation about what’s valuable to them—or why they want to buy a home in the first place.
- How much home can I afford?
Members should understand there is a difference between how much a lender is willing to lend them, and how much money they need to support the lifestyle they want to have. Using our Home Affordability Calculator, or getting preapproved will handle the financial aspect of this question. The lifestyle side is something members must consider on their own. We go into greater detail on this topic in this Learning Center article.
- What does ____ mean?
APR, LTV, PMI… There are so many mortgage-specific terms and acronyms that buyers need to familiarize themselves with, that it should come as no surprise our jargon will eventually trip them up. First, be careful not to assume knowledge, especially with acronyms. People don’t like looking foolish, and might not ask for clarification if they’re confused. So define the mortgage language as you use it, and be sure to check in with members to make sure they understand the terms you’re using.
- How do I know if my credit is good enough?
Over 60% of people either don’t know—or only “somewhat know”—the factors that contribute to their credit score. And 30.6% of Americans surveyed in June 2023 had no idea what their credit score even was. If a member is asking questions about credit, find out how much they know before responding. They may need some tips on how to improve their score, and how to protect their credit once they’ve applied.
- What are my mortgage options?
There are so many mortgage products on the market with different requirements and features, that it may be hard for members to keep it all straight. This is a good time to explain how the term, interest rate, and down payment collectively impact both the monthly mortgage payment and the total spent over the life of the loan. Before diving into this one, it may also help to know which the member would prefer: a lower monthly payment, or a lower overall cost.
We’re Experts At Answering These Questions!
Members of our partnering credit unions have access to MAM’s mortgage professionals who are happy to answer all their questions—either over the phone, or directly in your branch!
We’re here to help.
For more information about partnering with MAM, please reach out to Jim Mitchell at (616) 466-7793 or [email protected].
Timely Topics:
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Who Is MAM?
Member Advantage Mortgage (MAM) is a Credit Union Service Organization (CUSO) that helps credit unions increase revenue by offering mortgage solutions to their members.
We achieve this by finding the mortgage solution that is in each individual member’s best financial interest.
What We Do
Since 2006, MAM has offered first and second mortgage origination and fulfillment services to credit unions. We also provide marketing tools (like our Mortgage Payment Calculator) to increase lead generation.
How We Can Help You
We’ll help you improve member satisfaction and deepen member relationships by offering or streamlining your mortgage delivery process. You’ll be able to serve current members so they don’t need to turn to the competition, all while increasing your mortgage revenue and generating non-interest income.
How You Can Learn More
This page goes into greater detail on exactly how we provide support and partner with credit unions.
You can also call Jim Mitchell, our Senior Vice President of Strategic Partnerships, to get answers to any questions about partnering with MAM.
Disclaimer:
This information is solely for credit union and mortgage professionals and should not be distributed or provided to consumers or the general public.
This is not an offer for extension of credit nor a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Certain restrictions may apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. Member Advantage Mortgage, LLC is an Equal Housing Lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.
Member Advantage Mortgage, LLC NMLS #1557. Alabama Consumer Credit License # 22717. Arkansas Combination Mortgage Banker-Broker-Servicer License # 104160. Colorado, Regulated by the Division of Real Estate, Mortgage Company Registration NMLS ID # 1557; check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index.htm. Connecticut Mortgage Lender License # ML-1557. District of Columbia Mortgage Lender License # MLB1557. Delaware Lender License # 011515. Florida Mortgage Lender License # MLD781. Georgia Residential Mortgage Licensee, License # 36659. Louisiana Residential Mortgage Lending License NMLS ID # 1557. Massachusetts Mortgage Lender License # ML1557. Maryland Mortgage Lender License # 06-19371. Michigan 1st Mortgage Broker/Lender/Servicer Registrant # FR020440. Licensed by the North Carolina Commissioner of Banks, Mortgage Lender License #167098. Licensed by the New Hampshire Banking Department. New Hampshire Mortgage Banker License # 14242-MB. Licensed by the New Jersey Department of Banking and Insurance. New Jersey Residential Mortgage Lender License NMLS ID # 1557. Licensed by Pennsylvania Department of Banking. Pennsylvania Mortgage Lender License # 33868. Rhode Island Licensed Lender, License # 20112778LL. South Carolina Mortgage Lender License #1557. Texas Mortgage Banker Registration NMLS ID # 1557. Licensed by the Virginia State Corporation Commission, Virginia Lender License # MC-5045, Virginia Broker License #MC-5045. NMLS ID # 1557.
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