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Gary Kelley, Realtor – I was taught not to discuss religion, politics, or money at a party. Yet, when someone is buying a home, we need to know how they are going to pay. Why do we need to know? Jack Welch said “Cash is king. Get every drop of cash you can get and hold onto it.” Owning real estate funded with a mortgage provide leverage on your money! Unless you are paying cash, or even if you pay cash and do a cash out refinance, you will need to know a great loan officer.
I really don’t want to know a person’s financial position. It’s none of my business. And a loan officer or loan originator can be your financial confidant…knowing your goals and the levers to pull to get you into a home.
A loan officer isn’t a financial planner. While their skills overlap, financial planners consider how to grow (or distribute) wealth often using a diverse set of financial approaches and products. The loan officer works to get you a mortgage, and often provides insights in how to improve your financial position (like paying down one credit card.) The loan officer has a variety of products to use, and as real estate professionals we need to know what product is being used (for example, the Federal Housing Administration (FHA) – part of HUD – insures the loan, so your lender can offer you a better deal for down payment, closing costs, credit. And the FHA wants to make sure the house is fundamentally good, so they have additional requirements such as no peeling paint, no broken glass, handrails in place, etc. So an FHA loan is not for a fixer upper (unless it is a renovation loan).
Loan officers can be your friend in the home buying process. How do you find a loan officer?
My personal preference is for local loan officers…. someone you can go see and work through the details. You want someone responsive…you can’t go for days without a response. You want a problem solver…as there will inevitably be some items requiring focus and attention. You want someone empathetic. My view is you want someone experienced and successful.
You don’t want someone doing ANYTHING to get you in a home. It’s my experience people are often preapproved for more than they are comfortable spending…you need clarity on this and should dial in a payment making sense.
Your Realtor is a great source of referrals. We would be happy to introduce readers to Loan Officers for a no cost consultation to help them get sound financial mortgage advice.
In Massachusetts you need three parties working together to get you into a home: the Realtor, the loan officer, and the attorney. When these three work together harmoniously it is a wonderful thing leading to less painful transactions (there’s always a little pain. 😊) When they are not in sync there are often delays and time-consuming (dare I say non-productive) debates around the transaction.
Finally, a word on interest rates with a backdrop of rising interest. You don’t buy or not buy a home because of interest rates. You buy a home because you want to own a home, and you try to buy a home you can afford short and long term. Interest rates change and tend to cycle over time creating an opportunity to refinance at some point in the future if you happen to purchase during a rate uptick.
This is an exciting time. Enjoy and stay sanitized!
Here is free app for your phone/tablet tied directly to the MLS https://www.homesnap.com/Gary-Kelley
Gary is heard on WCRN AM 830 discussing “All Things Real Estate.”
If you need advice on selling your home or buying a new one, give us a call 508-733-6005.
