Purchasing a home is one of the biggest decisions your clients make, and they also have mortgage insurance options to consider. Mortgage insurance, and private mortgage insurance specifically, can have a large impact on buyers. Especially if they do not have 20% down to put toward their purchase.
Many prospective buyers believe that the 20% down payment is the only way to become a homeowner. But, this is not the case. Some borrowers put down less than 20% on their home. So, they will be required to purchase private mortgage insurance (PMI).
It is important to note that private mortgage insurance protects the lender. This is so in the event that the borrower defaults on the loan.
Free, Shareable Resources For Borrowers
So, make sure to discuss with your clients the details of mortgage insurance. Also, help low-downpayment borrowers by answering some basic questions. After all, you serve as their trusted advisor!
Keep in mind, happy clients will want to share their great experience with you with friends and family. So, share this borrower-friendly blog post with them as a helpful educational tool. Also, consider posting this on social media. This interacts in a more personal way and starts a conversation with your prospective customers.
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So, there are many options to consider when working with borrowers who have less than 20% to use as a down payment. Luckily, PMI can help your clients get into a home much sooner. Especially compared to spending years saving up for a 20% down payment.
So, anticipate these types of questions about private mortgage insurance. Then, be ready with informed responses. From there, you can strengthen client relationships and create a meaningful experience for your borrowers!