When it comes to the Coronavirus pandemic, one of the unintended consequences seen in the housing market has been a shift from living in high-density cities to more rural or suburban areas.

With many realizing their living spaces were not compatible with long-term stays during shelter-in-place orders, and more companies now offering full-time work from home, city dwellers are looking to get away from the hustle and bustle and abandon their urban apartments for larger houses with yards.

This means there is a wave of first-time homebuyers entering the market. For mortgage brokers across the country, expect more clients inquiring about the difference between renting and buying.  Austin Niemiec, Executive Vice President of Quicken Loans Mortgage Services (QLMS), reminds mortgage brokers to embrace their role as an advisor by educating them.

“Throughout your career as a broker, you’re going to wear a lot of different hats.  During times like these, when there is a groundswell of first-time homebuyers entering the market, putting on your ‘teacher’ hat is critical in guaranteeing you’re helping more Americans realize the dream of homeownership,” said Niemiec.

This type of education includes demonstrating a renter’s purchasing power based on what their monthly rent payment was, giving a detailed explanation of the mortgage process, and making sure they know how rising home prices can help them build equity and grow their net worth while living in their home.  Brokers are mortgage experts and know all this information by heart, it is just a matter of making sure their clients feel fully informed and have trust in them – those are the critical elements to building a relationship with new clients, according to Niemiec.

“In addition to being a mortgage educator, developing partnerships with local agents is essential in maintaining a healthy flow of clients through your door year-round,” said the QLMS leader.  “These relationships, however, are even more important now because of the abundance of buyers looking for someone to help guide them through the mortgage process.”

While some first-time buyers are using home search sites to determine where they would like to live, many are still leaning on real estate agents to help them find their dream home and purchase it.  Before the agent starts showing them homes, the first call should be to you – so you can preapprove the buyer and advise on what they should expect for the rest of the financing process.

During this hot time for home buying, it’s important to remember the most successful broker businesses can be flexible – working with both purchase and refinance clients.  It’s no secret rates are still near historical lows and refinance clients are also a priority.

“It is so critical brokers focus on being agile in a market like this,” said Niemiec.  “Most have the ability to refinance the vast majority of their past clients to historically low interest rates.  This requires being organized and persistent when getting in touch with them.  At the same time, brokers need to pivot and be a teacher for those looking to purchase a home for the very first time.  Being dynamic is a primary reason our broker partners thrive.”