What are those who seek a big-city lifestyle, but don't want to squash their American dream of homeownership to do? Is there any way credit unions can help? There is. Other than persuading these folks to move somewhere more affordable, they can give them the best deal possible on a mortgage and teach them money management skills that will lead to fulfilled goals. Here are a few places to start:

Offer a broad range of low-cost mortgage products and build relationships with mortgage brokers. According to the Filene Research Institute report, "Wallet Allocation: First Mortgages," three of the top factors borrowers cited for choosing a financial institution for a first mortgage were a low interest rate, the fact that the mortgage best met their needs (FHA loan, VA loan, jumbo loan, etc.) and the fact that their mortgage broker recommended the institution.
Ensure the mortgage loan process is painless. In the CU Times article "Make the Mortgage Loan Experience Smooth as Wine," Filene Chief Impact Officer Tansley Stearns vented frustrations over her own mortgage loan customer service experience and suggested credit unions ease the process by offering lots of help options, making the process transparent and setting expectations for members, for example.
Show members how to stretch their dollars. In another Filene report on a pilot project called "It's a Money Thing," researchers recommended credit unions provide clever, creative, easy-to-digest educational content for millennials – a generation filled with first-time homebuyers.

Instant Insights /

The Cost-of-Living Conundrum: Can Credit Unions Help?

Related Stories

Recommended For You