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In a Changing Market, Brokers Must Be the North Star for Borrowers

National Mortgage Professional
Apr 08, 2022

Homebuyers are suffering from acute Buyer Anxiety.


As if it weren’t already stressful enough, home buying in 2022 is more stressful than ever.

Housing inventory continues to sit at all-time lows, with January 2022 seeing a shortage of 5.8 million single-family homes according to Supply chain issues and a dearth of skilled labor have prevented the construction of new homes at a quick enough clip, making it hard to catch up. With 45 million millennials entering their prime homebuying years (26 to 35 years old), this has increased demand and driven median home prices sky-high.

In a recent survey of millennial homebuyers, 90% said they’d be willing to buy a home sight unseen. 80% were willing to pay above the asking price. Many are willing to make additional sacrifices, including settling for a smaller home, looking outside their preferred location, and making renovations upon moving in.

In short, homebuyers are suffering from acute Buyer Anxiety.

In a time like this, the broker’s role becomes ten times as important. As an industry expert and your buyer’s closest point of contact throughout the purchase process, you have to be their North Star. Buyers may be hearing conflicting information regarding homebuying this year. As their guiding light, you can help them turn chaos into order, understand all of their options, and help turn Buyer Anxiety into happy homeownership.

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Three tips for keeping your buyers ahead of the curve:

  1. Know your market. Depending on where you operate, make sure you have a lineup of products to meet the needs of your changing market and simplify the home purchase experience for your customers. For example, in California and New York (two of the country’s most severely impacted markets), many homebuyers dealing with increased home prices are leveraging Jumbo loans. Where Jumbo loans used to be considered the exclusive domain of 1-percenters, they’re getting much more use from buyers across economic strata. Pennymac TPO just released a Jumbo AUS Program specifically for this purpose.  With AUS, this makes the process streamlined and fast. 
  2. Gauge your buyer’s long-term plan. Many buyers are compromising or making sacrifices to purchase a home, and the homes they buy today may be a placeholder rather than their dream home. In the beginning of the process, ascertain how long buyers expect to be in the home — again, the answer could open up products that facilitate the process. If the home is a placeholder, and they intend to be there only for the short-to-intermediate term, an Adjustable-Rate Mortgage (ARM) product could be a good option. It may offer a lower, fixed interest rate for the mortgage’s introductory period, and can help buyers maximize their cash flow while they pursue their dream home.
  3. Prioritize empathy and communication. In today’s market, buyers may be riddled with anxiety, and their inexperience with the purchase process could make it seem overwhelming. Brokers who empathize with their buyers’ emotional state, respond quickly with high-quality answers, and help buyers put the homeownership journey in perspective will forge meaningful, long-term relationships.  Buyers want a partner who can guide them through the process with empathy and compassion. In addition to the right products, brokers must offer today’s buyers the right support and perspective.

Partnering with Pennymac TPO In trying times, brokers need a stable partner to provide them with the resources and support to succeed. The same way you’ll be the North Star for your buyers, Pennymac TPO serves as a North Star for all their partners.

Pennymac’s partners can offer their buyers maximum flexibility. Through Perfect Rate™ and Perfect Term™, you can tailor rates to the thousandth (4.888%, 4.787%), and customize mortgage terms to the exact month.

OptiMIze™ ensures that your buyers get the most competitive mortgage insurance rate. With interest rates up, it’s even more important to ensure that borrowers are saving by looking for the lowest mortgage insurance rates. 

Once you enter the purchase process, questions will inevitably come up. Whether you’re structuring a deal or trying to move a loan through the system, they provide access to Pennymac experts who can help expedite the process.

Plus, they stick with you past closing. They’re one of very few wholesale lenders who makes a permanent capital investment in mortgage servicing and retains servicing throughout the loan’s term. That means their partners can expect high-quality service for the loan’s entire life.
Markets rise and fall, heat up and cool down, and pose unforeseen challenges all the time. The benefit of working with Pennymac is that they are a stable, steady partner and are deepening their investments in the wholesale channel. They invest in the kinds of resources that help you stay in command of the changing times. That translates into being the best advisor for your borrowers and referral partners. 
Partner with Pennymac TPO today.


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