When clients are paying a primary mortgage, they are often reluctant to take on any more debt, or even consolidate. Lenders and agents can highlight the benefits of a Home Equity Loan at this time. Many people today are interested in Home Equity Loans for home improvements, repairs, debt consolidation, or emergency funds.
Here are a few tactics to keep in mind when dealing with Home Equity Loans.
1. Form Relationships
There are some borrowers who want a local lender. These borrowers like agents and lenders who have local offices, those they already have a relationship with and are already the primary institution. This gives the client confidence they will get approved.
Younger borrowers seem to compare lenders more often and have no fear of using the internet to search. These borrowers have concerns and reservations regarding borrowing against their homes. You need to give them confidence and forge trust.
2. Reach Out to Consumers
There are different ways to reach out to consumers.
- direct mail is a great idea as you can give more details than in email.
- Always mention kitchen or bathroom remodeling when speaking about a Home Equity Loan’s uses.
- When you use photos, be inclusive. Make sure all ages, gender, and nationalities are represented.
- When mentioning travel in connection with Home Equity Loans, use expressions like “a much-needed vacation.” Pools are also popular to mention when talking about home equity borrowing.
- Make sure to mention financial incentives, such as fee waivers and low initial rates often. Keep the offer simple and straightforward. Cross-selling can confuse the customer.
- Explain that equity credit can be flexible.
- Give a competitive rate offer. Give an end date to the offer.
- Change your message to fit the season. Mention education and tuition expenses in the summer months, and paying off holiday expenses in January.
3. Equity Credit’s Digital Frontier
Both digital and mobile channels are important to us today. Digital channels are critical for younger borrowers. The younger generation of clients tends to use desktop computers or cell phones and tablets to find mortgages and other information online.
Clients still like the “in-person” experience, even with the convenience of cell phones and online opportunities. They want lenders to be able to meet them on their own terms, and not be forced into set methods.
If you have any questions, please contact our mortgage broker today.