Over the last two years, as the residential real estate market has rebounded, homebuyers in some areas have been shopping as long as nine to 12 months, which results in a long span from preapproval to a formal mortgage application, notes Jeff Shood, CEO of Intuvo, Scotts Valley, Calif. Intuvo markets a sales analytic system that works in conjunction with the mortgage loan origination system.
In those intervening months, real estate agents might recommend a different lender or another mortgage lender might intercede. On average, the “purchase pull-through rate”—of credit unions closing on loans they’ve preapproved—is around 40 percent, Shood notes.
To raise that rate, credit unions need to stay in touch with homebuyers through personalized emails, mobile communications and regular phone calls from loan officers or branch staff offering information and support, such as tips on finding the best home or understanding mortgage options.
“Members interact with their credit union how they want to and when they want to—and that changes throughout the process,” he says. “Seventy-two percent of people start their mortgage application online, but personal contacts and support become more important as the process moves forward. Who wins the competition for mortgage business is determined by service, especially in the purchase market.”
Read how four credit unions are finding success with mortgage marketing on the myCUES app. Find it under “Spotlight.”
Karen Bankston is a long-time contributor to Credit Union Management and writes about credit unions, membership growth, marketing, operations and technology. She is the proprietor of Precision Prose, Portland, Ore.