Help Next Gen Homebuyers Stay on Track This Holiday Season

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Presented by: InGenius

(Sing along to the Jungle Bells tune)

Dashing to the store All shoppers outta my way O'er my limit I go Praying all the way Sounds of registers ring Lowering my score What fun it is when inquiries ping

Need credit help galore!

Yep, that was my Christmas credit jingle last year, a tongue in cheek parody to help folks understand the impact of impulse Holiday shopping. But it’s like fruit cake it gets better with time.

As we head into the Holiday season this year, let’s dive into this little ditty and pull out some tips to help you and your borrowers avoid the credit Grinch.

If you are in the market for or currently approved for a home loan, you have likely been advised NO new debt.

What you may not realize are those inquiries for the % off credit card offerings at Holiday time could adversely impact your score by 5, 10 or 20 points.

Your loan approval pending closing was based on your debt load at the time of approval. That debt load ratio is at 43% - adding all that Holiday cheer to your credit cards could land you with a lump of coal vs your new home.

And going over your credit card limit? That utilization increase is a huge risk predictor, and will likely send your score to a cave at Mount Crumpit in Whoville.

Want to avoid the Holiday credit hangover? These 5 steps will get you and your borrower thru the season without spoiled eggnog.

1) No, the store clerk is not a credit expert. They are selling you a new card and merchandise to make money. New inquiries WILL impact your score.

Just say no to new accounts.

2) The average holiday tab is $1,000. Many spend much more. It will take a minimum of 5 months to pay off the $1,000 with extra payments. Adding that to an existing balance could add years to your payoff.

Make a spending budget with the next 6 months in mind. Do you really want to be paying for Christmas while you’re coloring Easter eggs?

3) Going over your existing credit limit even just a little bit will have big impacts on your score. Yes the credit card approved the charge. And when they report your new balance, your could see a 10-30 point score drop.

You would have to first pay off the over limit amount, then get those accounts back to around 50% of your limit to improve your score. Was that factored in the budget from step 2? If not, step away from that Black Friday and Cyber Monday deal.

4) Give yourself a Holiday present by halving what you planned to spend in step 2, and add that to your emergency fund or down payment fund.

Always pay yourself first.

5) Do the kids really need a new gadget, or would a debit card that’s geared to teach them about savings, spending and how to manage money and credit be a lifelong gift of financial literacy?

Check out selfsufficientkids.com for reviews and options.

Give the gift of empowerment and education to your future home buyers this season. They’ll return the favor with the gift of referrals and repeat business.

In the heart of the festive season, where spending can easily get out of control, loan officers have a crucial role in guiding borrowers towards making smart financial decisions. It's an opportunity to reinforce the importance of saving, especially for those looking to secure a mortgage in the near future. Here are some insightful strategies loan officers can employ to educate borrowers on spending and saving through the holidays.

Create Educational Videos and Blogs:

• Create a Video Series: As a loan officer, consider creating a video series on managing finances during the holidays. Topics could include budgeting tips, the importance of saving for a down payment, and smart credit card use.
• Write Informative Blogs: Crafting blogs that delve into how borrowers can ask for financial gifts towards their down payment or how to use credit wisely can be incredibly helpful. Share these blogs on your website and social media platforms to reach a wider audience.

Promote the Idea of Financial Gifts:

• Holiday Gift Contributions: Encourage borrowers to talk to family and friends about contributing to their down payment fund as a holiday gift. It’s a meaningful gift that brings them one step closer to homeownership.
• Gift Letter Template: Provide a template for a gift letter that borrowers can use to formally accept financial gifts towards their down payment.

Present Credit Management Workshops:

• Organize Workshops: Host workshops on credit management where borrowers can learn how to maintain or even improve their credit scores during the holiday spending spree.
• Guest Speakers: Invite financial advisors to speak at these workshops, providing professional advice on managing credit and saving efficiently.

Teach Smart Credit Card Use:

• Educate on Credit Utilization: Teach borrowers about credit utilization and how to keep it below 30% to avoid negatively impacting their credit score.
• Credit Card Rewards: Explain how borrowers can take advantage of credit card rewards for cash back or savings on future purchases, which can be put towards their down payment.

Offer Personal Consultations:

• Offer Consultations: Providing personal consultations can give borrowers the chance to ask questions and receive personalized advice on their financial situation.
• Budget Planning: Assist in creating a realistic budget that accounts for holiday spending, saving for a down payment, and maintaining a good credit score.

Incorporating these strategies into your service offerings not only empowers borrowers to make well-informed financial decisions but also fosters a deeper relationship of trust and reliability between you and your clients. Through educational content and personalized advice, you can guide your borrowers on a path of financial responsibility, aiding them in achieving their goal of homeownership amidst the cheer and challenges of the holiday season.

The holiday season is a time of joy, celebration, and for some, a little financial stress. If you're a mortgage professional, this festive time of year can offer you a unique opportunity to connect with potential customers and help them make their homeownership dreams come true.

Let’s explore 8 different pieces of holiday-themed video content to provide value to, and connect with, future homebuyers.

1.? Ask for Gifts for Down Payment

The holiday season is the perfect time to ask for gifts from your family and friends. When creating video content, share your personal experiences or success stories of homebuyers who managed to boost their down payment fund with holiday contributions. Emphasize that these contributions can not only be used for a down payment on a home but can make a significant difference in achieving homeownership goals.

2.? Using Credit Wisely

Discuss the importance of using credit wisely during the holidays. It’s easy to go overboard this time of year, and explaining the do’s and don'ts of maintaining and building a good credit score while indulging in holiday shopping could go a long way. Share tips like not exceeding your credit limit and avoiding maxed-out credit cards. Empower your viewers with practical advice on keeping their credit scores in good shape.

3.? Sticking to a Holiday Budget

A key message in your video content strategy should be encouraging viewers to set a budget for holiday expenses. Share your insights on how to create a realistic budget for gifts and entertaining and, more importantly, how to stick to it. Offer tips for planning their holiday expenses, like making a list, checking it twice (sorry… couldn’t help myself), and prioritizing purchases to avoid unnecessary debt.

4.? Resisting Black Friday and Cyber Monday Temptations

Black Friday and Cyber Monday sales can be tempting, but they're also a potential pitfall for future homebuyers. Create videos that address the allure of these sales while emphasizing the importance of not getting carried away. Encourage viewers to think twice before making impulse purchases and taking on additional credit card debt.

5.? Avoiding High Credit Utilization

High credit utilization can negatively impact credit scores. Explain the concept and potential consequences in your video content. Offer advice on responsible holiday shopping, such as spreading out purchases, taking advantage of sales without overextending credit limits, and prioritizing saving over spending.

6.? Strategies to Keep DTI in Check

Educate your viewers about the significance of maintaining a healthy DTI ratio and provide strategies for doing so during the holiday season. You can suggest ways to increase income or reduce debt to keep the ratio in check.

7.? Personal Touch and Real Stories

Share real stories and experiences of homebuyers who successfully navigated the holiday season while working toward their homeownership goals. Real-life success stories are relatable and can inspire your audience.

8.? Customized Tips and Advice

Throughout your video content, provide tailored tips and advice that consider your viewers' unique financial situations. Make it clear that you understand their challenges and are there to support them in their homeownership journey.

Holiday-themed video content can be a powerful tool for mortgage loan officers looking to connect with potential customers during a time of year where business typically dips.

By addressing common holiday financial challenges and offering practical solutions, you can build trust and help your audience stay on track with their long-term homeownership goals. When it comes time to buy, your viewers won’t forget who they trust, and you’ll be in prime position to help them achieve their homeownership dreams.