First you have a client who for the most part doesn’t understand anything about buying a home. They have no knowledge of the market or any aspect of the loan process. Not only is it important to help them find a home or get approved for a loan, but also to advise them on their location decision in terms of potential capital gain, as well as understanding the different types of loans that are available and what are the short-term and long-term financial effects of these loans.

In many cases, these buyers will be limited to certain loan programs as well as the type of home they can afford. Many of these buyers may also have credit issues as they are simply establishing their credit or have not purchased a home due to credit issues and have rented for several years thinking they could never get approved.

Many of the first-time homebuyers I work with fall into the latter category. This is a great market. Even in slow times, there are plenty of people who just don’t think they’ll ever qualify for a home, so first-time homebuyers with some credit issues can be a good source of business. Most of the time it is a simple process of reviewing the credit report and making a few corrections to raise credit scores. I’ve found that these types of buyers are also extremely appreciative once you help them achieve their goal of owning a home, and in most cases, they can be your biggest source of referrals. My experience as a Certified Credit Restoration Instructor for Central Michigan University in 2002 has proven to be a valuable tool in working with clients with credit problems and increasing scores by 50-100 points in 30-60 days.

When working with a first-time homebuyer, it’s important to educate them on all aspects of buying a home. The goal for the first-time homebuyer should be to continually improve their capital position, as well as the accumulation of personal assets. I have worked with many first time homebuyers who went from a two year fixed subprime loan to a better rate situation after the second year due to ongoing mentoring from that client. With a first time homebuyer, our work is never done. We continue to provide them with credit education, budgeting, and resources for setting up investment accounts—anything that helps them grow personally and financially.

My process for working with a first-time homebuyer also provides an exit strategy that will occur 2-3 years (2 years if subprime) after the loan is completed. In that period of time, the client is generally in a better position as to what type of loan they can qualify for and can now really start to take advantage of the many different strategies to build wealth through proper home equity management. housing and mortgage.

In closing, if you have the opportunity to work with first-time homebuyers, please understand that they have special needs and deserve our undivided attention. For them, this is the beginning of a lifelong journey, and you, as a mortgage lender or real estate agent, have the ability to create a successful customer whose loyalty will be commensurate with your efforts to help them succeed.