Today’s Market Trends
Today’s market trends say the biggest factor in the average homebuyers mortgage decision is not life of loan, but the short-term cost of money over a 3 to 5 year period. Frankly, most new homebuyers are younger and just starting out with plans for family and upgrades. Many have made credit errors from their youthful lack of understanding just how important their credit really is and end up being placed in specialty programs for qualifying.
Regardless of your credit, every mortgage consultation you receive should factor your; short term financial goals, long term financial goals, your money personality (very important when selecting a loan program that protects your interest), your risk comfort, payment savings, reinvestment return (for savers and investors), product benefits, local market risks and the projected home appreciation. While there are other questions, they trickle into client specific question which are developed by you through your interview process.
In addition, hundreds of thousands of potential first time homebuyers across the country begin the process, yet lack funds to make a down payment. These homebuyers should ask specific questions relevant to their needs.
Does your prospective lender know where to get down payment grants and do they help you through the grant approval process?
Do they know how to create a down payment where no down payment existed, even when you’re not eligible for a government grant?
Does your prospective lender know how, and when, to do any legal creative financing that not only meets your down payment needs, but also your need for closing costs?
Does your loan officer understand credit and how to help the credit challenged buyers quickly gain FICO™points or prepare for a loan?
Does your loan officer have the expertise to take a home buyer with a 500ish MID FICO™score and get that home buyer a rate equal to the prevailing conventional market rate on a 30 year fixed rate loan?
Does your loan officer have enough integrity to tell you when you can’t afford a home, even if you can qualify using an Alt A Product or the wrong product?
As you can see, there are many important questions you need answers to during the initial interview with your prospective loan officer. While “professional advice givers” say shop rates and closing costs, that is the worst way you, as a homebuyer, can shop for your mortgage. This process costs many homebuyers thousands upon thousands of dollars every month. It just seems to be the popular and easy out for “advise givers” as dollars you see are much easier to factor than dollars you don’t.