THE ADVANTAGE
Your monthly recap of the most important
mortgage-related news, perspective, and advice
October 2023


3 minute read
Homebuyers can encounter a lot of obstacles on their path to home ownership. Some, like rising home prices and limited availability, they can do little to nothing about. There is, however, one obstacle that members can control, that they could use your help with:
Saving for a down payment.
According to the National Association of Realtors’ 2022 Obstacles to Home Buying report “At least three-in-four potential homebuyers are currently or planning to save for a down payment”.
Regardless of whether members currently have a down payment savings strategy or not, they could use your help! Here are three steps to help your members figure out how to save for a down payment.
Explain their mortgage options.
It is widely accepted that the best first step when buying a home is to contact your lender. Despite that truth, some members may prefer to start the process all on their own. The problem is the internet can’t give them personal guidance. They may incorrectly assume that they have to save 20% for a down payment, which as you know, isn’t always the case. Explaining the down payment requirements (and other features) of each mortgage product available to buyers will help them decide on the option that is best for them. Spoiler alert: we’ll dive deeper into this topic next month.
Set a savings target.
Knowing the down payment requirement is a great start, but still only paints part of the picture. Getting preapproved will provide further clarity on how much the member needs to save by disclosing the estimated closing costs. It also gives you an opportunity to discuss how purchasing points can impact both the interest rate and the amount they need to bring to close. You can provide even more value by teaching the buyer how to think through how much home they can afford. They may not want to purchase the maximum amount they are preapproved for.
Share strategies to save for a down payment.
Coming up with the funds for a down payment may seem overwhelming without a solid plan. Even with a plan, members may not realize that some mortgage products place a cap on how much family members are able to contribute to the down payment. Ensuring members have the right strategy to meet their home buying goal on time will most likely turn them into raving fans of your credit union!
We’ve got an article that explores 8 ways to save for a down payment.
Here are the highlights:
- Establish a savings account just for your down payment.
- Get an extra job.
- Skip a vacation.
- Attack your debt.
- Ask for cash instead of gifts.
- Rent out an extra bedroom.
- Keep an eye on the job market.
- Temporarily stop or reduce retirement savings.
Just remember that whatever the member decides for a strategy, consistency is key! Keep an eye out for next month’s newsletter where we’ll break down how to educate members about their mortgage options.

Timely Topics:
Give Your Credit Union An Even Bigger Advantage
Get The Advantage delivered right to your inbox

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.
Visit www.nmlsconsumeraccess.org for complete licensing information.