First-Time Buyer Program – Start by Asking the Right Questions



First-Time Buyers (FTBs) represent a very lucrative, yet potentially risky portion of your membership. Credit unions can position themselves for long-term success by implementing proven strategies for FTBs. The key, like with many things in life, is to start off by asking the right questions:

  • Are their parent’s members? The majority of your FTBs are younger, so it would help to know something about their family history.
  • Do they rent or live with parents? What is their payment history with any landlords?
  • What is their motivation?
  • Is this the first car they’ve ever purchased from a dealer?
  • Do they know or did they look up the value of the vehicle they are buying?
  • Do they have a commitment for the insurance?
  • Do they know the cost of the insurance?
  • Where is their checking and savings accounts?
  • How much money have they saved to put down?
  • What is their level of education?
  • How did they get their last job?
  • What is their performance evaluation?
  • Do they like their job and what are their future prospects there?

A good interview is absolutely essential – you want to get to know these members.  It takes a little more time, but it can mean the difference between having a profitable long-term relationship vs losing money on a bad loan. (LSCI has developed a special First-Time Buyer checklist, which you can see a snapshot of on the next page).

In addition to asking the above questions, it’s important to establish and follow guidelines for FTBs. LSCI recommends the following:

This content is for CU BUSINESS eMagazine , Special Deal: 2 websites , and NEW! The Leadership Team Builder Group Subscription members only.
Log In Register

Share post:



More like this

Newark Board of Education Employees Credit Union Joins

  Newark, NJ and Princeton, NJ – is excited...

Jax Federal Credit Union Announces Promotion of Joy Bing to Senior Vice President of Consumer Lending and Mortgage

JACKSONVILLE, Fla.–June 14, 2022–Jax Federal Credit Union announces the...

Rebecca White Joins Texas Trust as Vice President of HR

ARLINGTON, Texas – June 6, 2022 – Strengthening and...

There’s more to overdraft reform than just fees

The great overdraft debate has focused on fees. And...