While I think there is a strong need for the financial coaching portion, many consumers won't want to pay for that service. They think they should get it for free assuming that you're also doing their mortgage.
I think it would be better to branch out into insurance brokerage. There's likely a strong desire for a number of products: life, long-term disability, and long-term care. As Gen-X sees their parents in retirement and the issues with long-term care, I think that's a growth market for sure.
I am adding the insurance brokering for sure.
The interesting thing is that I use to basically think like you where I didn't think it would be something to monetize. Here is some things that made me reconsider that.
Most LO's don't mess with putting time and effort in helping people get ready for a mortgage. They basically tell them "your credit needs to be XXX, come back when you get it there" or otherwise quickly move on. Why? Because you put all this time and effort into helping someone and then they hear about some DPA program or a family member tells them to go somewhere else or they think they are getting a better deal somewhere else for some reason and the hours of time you put into helping them means nothing to them. All of those are real examples that have happened to me- regardless of whether I can actually help them better or not, they think they are getting something better/more elsewhere. Whether broker or LO, anyone that does go above and beyond has been burnt. On top of that, people that need the help may or may not actually do what you tell them to do to get ready. So, even if they are committed to using you, they may never get there because they are not really committed to it. Someone paying for a service to get there is likely at a higher level of commitment.
I help a lot of people that I am not licensed in states for and I get nothing for it. I do enjoy helping people but I also need to be fair to my family and respect my time since I am not independently wealthy. I have to just turn people down who ask for more help because my time is my money. If they want further help, they can pay for that and I can serve them.
I have an email that I put together to help my clients get ready for a loan without spending a ton of time with them. I often send that to people who I have no opportunity to do a loan for (in a state I am not licensed in). One of the guys I did reached back out and asked if I could spend time with him to go over everything specifically and offered to pay me. I said that I didn't normally do that but it sounded like something I could agree to and asked him what he thought was fair. He said $100 and I agreed. He sent me his credit report and I reviewed it and then we had a phone conversation to go over everything and give him a specific game plan on what he needed to do. It all took less than an hour of my time to do. (My first paying client)
People literally pay hundreds of dollars for the Dave Ramsey crap. I mean, hundreds of dollars to have someone say "Don't spend money and don't use debt" and along the way give poor advice in other areas. Obviously I don't have the Dave Ramsey brand/name and I am not about to pay thousands to be one of his pep's but that is evidence there is a market for this.
I ended up coming across a Financial Coach and he agreed to jump on a call for us to talk about it. He actually has his niche doing basically the same as I was thinking of doing. He just started and is doing it part time but he is bringing in business.
Finally, I have a FB group that is centered around Credit Scores/Repair. It has a little over 300 people in it right now (I hadn't been trying to grow it much until recently) and I threw up a poll last night when I also posted in here. Simple question: If I were to offer Financial Coaching services would you be interested? Two options: Yes! Where do I sign up? and No thank you. It currently shows 65 reached and 19 have answered Yes! (no one said no but I wasn't really expecting anyone to- lol) Now, not sure who many of those 19 would really sign up when it came to actually paying money but that is a pretty good response I think.
So, that is all why I am thinking there is some business here. I further thought of the potential to tap into my broker contacts across the country where I see some opportunity to have this become my main business, maybe even eventually stop lending but for now it would be a minor part of what I do unless/until it grew to be the primary source of income. Who knows.
maybe I should start another post?