Summary
This article explores how the rise of remote work has changed the mortgage landscape and how mortgage professionals can adjust their approach to cater to remote workers. Learn about key strategies and tips for handling mortgage applications for remote employees. By the end, you’ll know how to tailor your services to meet the needs of remote workers in a competitive market.
The American workforce is changing a lot. A Gallup poll reports 43% of workers in America do at least some of their work remotely. Places like Brooklyn now have as much as 40% of their residents working as freelancers. Job site Indeed, says there was a 385% increase in searches for remote working positions in 2017. Some projections expect 80% of traditional jobs to be replaced by digital in the next 10 years. Yet, the mortgage lending industry is still almost exclusively built to serve the static, almost extinct W2 employee!
Unless loan programs, companies and loan officers change, everyone is going to be fighting over a very, very small slice of business. If anything we should be wanting to grow mortgage lending by 80%, not shrink it by that much.
So, what can mortgage brokers, lenders and independent LO’s do to stand out as the one to do business with, and who can deliver on the needs of today’s potential borrowers?
Want to learn about more future mortgage technology trends that can make or break your business?
Mortgage Loans for the New Workforce
There is a huge disconnect between traditional underwriting demands and what the new workforce has. W2’s, 2 years on the job with the same employer, consistent housing history in the same place for 2 years – forget it. Almost half the population is instantly disqualified. That’s true even if they are those with the best credit scores and incomes.
One lender has stepped up to advertise loans that are a good fit for the ‘gig economy’. If they are the only ones promoting it, guess who stands to automatically win 40% or more of the potential mortgage business out there?
You may not be in a position to personally create new loan programs or approve loans. Yet, you can find the best matching programs for these borrowers. You can help educate them on how to become well qualified borrowers, and get their paperwork right.
Engaging the New Workforce
The other half of this is meeting the needs of these borrowers. Showing up where they are, and providing service that works for them.
They still want to buy homes, invest in real estate, and may inherit or have property to refinance. They are looking in different mediums, and have challenges with old school methods of applying for loans and navigating the demands of underwriters.
Can you reach them in freelancing and co-working circles? Consider how you can get your ads where they hangout online and offline.
Consider their challenges and also how they communicate today. Someone who has been a digital nomad for the last two years, might only have hotel receipts for housing history While they may have been paying 3x more than the cost of a modest home mortgage. They can afford it. Though many of their documents may be in storage in another state. They probably don’t have a printer nearby. Trying to mail them documents to sign is going to be futile. Or maybe they’ve owned a home in the US for years, and have 60% equity and want to refinance, but travel almost nonstop and may not have consistent international phone service on the same phone number.
Try championing these hurdles with allowing them to upload underwriting conditions online, offering live chat on your website, and also esignature tools.
Don’t just offer these things. Make a lot of noise about how you can help, and how you are the perfect fit to help them.
Key Takeaways
- Understanding the Needs of Remote Workers
The article highlights that remote workers often face unique challenges when applying for a mortgage, such as proving income stability and navigating tax-related concerns. Understanding these challenges is crucial to providing tailored solutions.
- Offer Flexible Solutions for Non-traditional Income
It explains that remote workers may not have traditional salaried income. Mortgage professionals can help by offering flexible options and understanding self-employed income, freelance work, or contract roles when evaluating applications.
- Use Technology to Streamline the Process
The article emphasizes the importance of using digital tools and technology, such as online application forms and document sharing, to make the mortgage process more accessible and efficient for remote workers who may not have easy access to physical offices.
Commonly Asked Questions
- What challenges do remote workers face when applying for a mortgage?
Remote workers often deal with challenges like proving income stability and understanding tax-related issues, which may not align with traditional employment records.
- How can mortgage professionals support remote workers with non-traditional income?
By offering flexible solutions and considering freelance, contract, or self-employed income sources, mortgage professionals can better accommodate remote workers’ financial situations.
- Why is technology important for remote workers in the mortgage process?
Digital tools such as online applications and document sharing streamline the process, making it easier for remote workers to apply for a mortgage without needing to visit a physical office.
- What should mortgage professionals do to cater to remote workers effectively?
Mortgage professionals should understand the unique needs of remote workers, offer flexible solutions for income verification, and use technology to ensure a smooth, accessible mortgage application process.
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