How Loan Officers Can Convert Renters into Buyers: Part 3 - Overcoming Renter Assumptions that they Can’t be Homeowners

For Part 3 of our “ How Loan Officers Can Convert Renters into Buyers” series, we will discuss They say “ You don’t know what you don’t know”  Many good home buyer candidates go through their everyday lives never even considering homeownership as an option.

Below are some numbers that you will find motivating.  Especially - 72% of all renters WANT to own their own home.

Homeowners vs. renters: By the numbers

• 67.4% - National homeownership rate in 2020
• 65% - Percentage of renters that are young adults
• 72% - Percentage of renters who said they want to own a home one day, according to a 2016 Pew Research Survey
• 37% - Percentage of renters who live in an apartment
• 42% - Percentage of homeowners that are between the ages of 45 to 64 years old
• $1,160 - Median asking rent for vacant rental units in the U.S. as of October 2020, according to the U.S. Census Bureau Current Population Survey/Housing Vacancy Survey
• $234,500 - Median asking sales price for vacant for sale units, according to the U.S. Census Bureau

Stats from https://www.policygenius.com/

Here is one approach to get in front of renters to make them buyers

• Create a list of all the people you know well enough to stop and say Hi to them in the supermarket
• Create a simple email template letting them know that rates have never been lower and homeownership has never been more affordable
• Mention that you are excellent at getting credit scores improved and
• You know how to get “ free money”  - See Part 2 - to help provide cash to close
• Ask them if they know any renters and ask for an intro ( share a contact via I-Phone, email, text, doesn't matter) 
• If you get a referral.  Immediately thank your referral partner and keep in touch with them 

Not everyone you get will be ready to buy, but you are the expert.  Work with them, get them to where they can buy.  Now you have a client for life AND a great way to introduce yourself to a realtor.  Realtors ALWAYS get asked for business.  Change it up and call a realtor in the area your client wants to live and ask them if they can help your clients and send them a prequal letter right away.  Forget donuts and coffee, bring them clients!

Search Facebook groups for renters groups or first time buyer groups

There are a ton out there.

Get creative.  The more people that know that you can help people become homeowners the better.

Innovative Mortgage has all the tools and all the programs MLOs need to create a pipeline of renters into buyers!

For more information on how we help our clients at Innovative Mortgage, please reach out to us.

For more featured resources visit our MLO Resource Center.