People like new things. New phones, new pets, new cars, new foods… new kitchens, new bathrooms and new houses. The mere concept of “new” can trigger excitement and motivation.
But other feelings often come along with this excitement. An article I read recently noted that fear is often tied to new things. I’ve found that to be true. Think about how you may have felt when taking a new job or starting a new romantic relationship. Probably excited, and probably with a measure of fear about what might go wrong. Or even how you felt about something less consequential, like skipping your favorite item on a menu to try something new.
As mortgage professionals looking to succeed in a very competitive marketplace, we understand that growing our knowledge and capitalizing on product opportunities are key ingredients to that success. One area with growing opportunity is new home construction and renovation lending.
Now to many of us, construction-permanent and renovation loans are new. Or at a minimum somewhat unfamiliar. And that can present an obstacle, like fear, or perhaps simply a general uneasiness of what to do with this opportunity.
So how do we separate the concepts of fear and new? Growing our knowledge is a great way. At MGIC one of our core strengths is our training program that helps our partners grow their knowledge. We strive to provide best-in-class education and tools lenders need to succeed in an ever-changing marketplace. Our newest educational offering is focused on the new. That is, new construction and renovation lending to help your borrowers purchase their dream home.
And why have we created this? The mortgage business is booming, fueled significantly by refinance loans due to record low interest rates. That will not last forever. And maybe there is some fear around that recognition. We can work together to remove that fear and create some excitement.
Beyond these emotional considerations, there is data. Okay, side note, some of us do get emotional about data. Consider that:
- The for-sale inventory for existing homes is at a 3-year low at 1.9 months’ supply (National Association of Realtors)
- New home sales are near an all-time high at a seasonally adjusted annual rate of $923,000 (US Census Bureau)
- Homebuilder optimism is near an all-time high (National Association of Home Builders)
- Home remodeling expenditures have been increasing consistently and are at an annualized rate of $339B (Harvard Joint Center for Housing Studies)
- Chip and Joanna Gaines are back with new episodes of Fixer Upper (HGTV)
It’s clear that new home building and home renovation activity is experiencing strong growth. And many people need mortgage loans when building and remodeling these. And most of those people don’t have a 20% down payment, or don’t want to plunk down all their savings to get to 20% (see MGIC’s 15 > 20 concept).
That’s where MGIC mortgage insurance comes in to help you help buyers finance their new home construction and renovators finance their home renovations without emptying the piggybank. And to help make it happen now, for as little as 3% down, or 3% equity.
Now’s the time to put MGIC’s educational resources for new construction and home renovation lending to work for you. Whether that means trying something new or expanding on what you’ve already accomplished. You can get started now by listening to our recorded webinar and by reaching out to your MGIC Account Manager.
We’re excited to work with you to see what we can build in 2021!