Prepared for Glacier | Delivered November 25, 2019
Home Equity Competitive Strengths
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Provide an understanding of what competitive strengths exist within the home equity lending market
Home equity lenders
who effectively target the right candidates stand out in the market, with those who allocate the majority of their resources to targetting those with sufficient equity and potential to borrow seeing increased success.
Key companies may use their customer list along side an in house
property research database
to identify homeownership status and property liens in order to pre-qualify potential customers, and market directly to them.
It's also noted that key lenders know how to
mitigate the apprehensions
of potential borrowers, which they often due by educating prospects on value and use of home equity loans.
of home equity borrowers noted concern about the nature of the loan or being financially overextended.
Top equity lenders alos
quickly qualify borrowers
, in order to make the process speedy and organized, and maintain customer satisfaction.
Key companies are also targetting home owners in the
Gen X demographic
, as their home equity has increased significantly in the last ten years.
Lenders are also
building ongoing relationships with borrowers,
by either being their mortgage lender or their primary financial institition, as the familiarity allows them to connect with consumers.
The following factors
were rated the most important by home equity borrowers; having local offices — 36%, confidence they’ll be approved — 35%, lender being their main or primary financial/depository institution — 33%, large, well-known institution — 30%, getting a better deal or discount because they already do business with the lender — 29%.
Key lenders are also quick to call out
their competitive rates,
with a 'rate is king' mentality prevalent in the home equity space.