21 Aug

Why Realtors Need To Have A Mortgage Broker At Their Open Houses

General

Posted by: Roberto Pelaccia

There are typically two scenarios where people will seek out a mortgage broker. The first being when you’re thinking of buying a home and you want to know what kind of mortgage you qualify for. The second being when you’ve found your dream home and it’s time to get that mortgage application done and approved.

In today’s market, houses can go in the blink of an eye, or they can drag out. As a realtor, you want to avoid the ladder. You want your open house to go as smoothly as possible so you can have a buyer quickly, or even multiple buyers. Having a mortgage agent at your open house can help you do this. In this article I go through some reasons why it’s in your best interest to make sure you have a mortgage agent at every one of your open houses.

1. You’re eliminating a step

When people come to an open house, chances are they’re interested in seeing if it could be the right home for them. If they think it is, then comes to part where you hope they make an offer. But, many people are not prepared to do that on the spot. They have to go and speaker with their mortgage provider or they have to go and see if they even qualify. By having a mortgage agent at your open house, people can simply sit down with the mortgage agent right then and there to see if they qualify and to make an offer. Not only is this convenient for you, but it’s also convenient for the buyers. They no longer need to take additional time out their day to get in touch with their mortgage provider or to go and find one because you’ve provided one for them. Convenience is key, which you are providing by having a mortgage agent on site.

2. A second set of eye

As you know, when you have an open house, you are liable for anything and everything that happens during said open house. Depending on how many people show up, you may not be able to keep an eye on everyone. Having a second set of eyes is to your benefit. It’s also good to note that both you and the mortgage agent have common goal – to get them to make an offer. You get to sell the house and they get a new mortgage client. So, having a second person keeping an eye out for questions or concerns makes sure that potential buyers don’t walk out feeling like they don’t have enough information. Two heads are better than one!

3. Feedback

When potential buyers are walking through a home, they tend to keep things to themselves in terms of feedback. They might not like something in the house or be concerned about another thing, but yet, they don’t say anything. Through experience, people tend to voice their opinions much more freely with their mortgage agent. At the open house, realtors tend to represent the home, the seller, and mortgage agents represent the buyers. Therefore they’re more likely to voice feedback because they know the mortgage agent is there to help them specifically. By having a mortgage agent on site, you can receive real time feedback so that you address any issues right away. Versus never hearing about them at all and losing potential buyers.

 

As you can see, having a mortgage agent at your open houses is to your benefit. It’s convenient for potential buyers, it gives you a second set of eyes, and you’ll receive feedback you would have otherwise not known about.

Let’s work together to get your houses sold quicker by making it near impossible for people with true interest to leave your open house without having made an offer.

 

14 Aug

Things You Need To Know About Construction Mortgages

General

Posted by: Roberto Pelaccia

If you don’t know what a construction mortgage is, not to worry because it’s exactly what it sounds like. You are taking out a mortgage to cover the cost of building your home. However, there are also other kinds of “construction” mortgages that you should be aware of.

In this article, I’m going to take you through some of the different kinds of mortgages for situations where your home isn’t actually built yet.

Completion Mortgage

This is one that you’ve probably heard of with all the new homes being built and new developments being done. This is a scenario where you would apply for a mortgage but the loan itself isn’t transferred until the construction of your home is complete or until you take possession of said home. However, you may still need to come up with a downpayment, which you might be able to pay in installments versus all at once.

Now, some people may think this is a dream situation. You get to go pick out your home, have it built exactly how you want, and you don’t have to pay anything upfront.  But, there are very real downsides to this option that you might not have thought of. So, like I said, you pick out your home and don’t actually have to have your mortgage transferred until your home is completed, however, what if something were to happen in your life that put your mortgage approval in jeopardy? It could be that you lose your job, change jobs, or need to take out another loan for something important. These are all things that would work against you being able to qualify for a mortgage, which I’ve explained in a previous article. So, depending on the length of time between your mortgage application and when you will take possession of the home, you may not want to agree to that kind of a commitment due to the risk of inevitable life occurrences.

Draw Mortgage

Another option when looking at construction mortgages is a draw. Just like it’s called, this kind of construction mortgage allows the developers to draw money from the mortgage as it’s needed throughout the construction process. If you are building your own home, you can also do a draw mortgage and withdraw money as building milestones occur. These milestones are typically when the construction begins, at 40% completion, at 70% completion, and then at 100% completion.

This is a good option for people who do not want to have to pay the entirety of the construction charges up front, without having anything to show for it until the house is built. However, one of the downsides to this option is that you will need to have an appraiser come in periodically to ensure everything is on track and is being done to code. The downside to this is that you obviously have to pay this appraiser every time they pay your site a visit.

Another downside to this option is that you may have to start paying interest on the mortgage as soon as you make your first payment. This means that you’ll be paying interest on a home that you don’t live in yet.

 

Having said all of this, obtaining a construction mortgage is doable and might be the option you’re looking for depending on your specific situation. It’s good to keep in mind that obtaining a construction mortgage can be a little bit trickier than getting a traditional mortgage but can still be done through a Mortgage Broker or Agent. In fact, with Mortgage Brokers having a wider access to lenders, it’s to your benefit to visit one to see what lenders are available to you. I say this because some lenders will only allow you to have so much time for construction and you may also need an estimate for construction costs.

So, if you’re looking at possibly getting a construction mortgage, it’s good to keep these things in mind and make sure you know all your options. If you have any questions, don’t hesitate to reach out.

 

9 Aug

The Advantages Of Working With A Mortgage Broker

General

Posted by: Roberto Pelaccia

There are a lot of options when it comes to taking out a mortgage and buying your home. But, some people tend to stick with banks because they’re large corporations and should therefore be more trustworthy than an individual person. Considering I am a mortgage agent myself, of course I am going to tell you that these things aren’t true. But, why would you just take my word for it? Of course my opinion is biased!

In this article, I am going to go through the many reasons why working with a mortgage broker or agent is actually to your advantage. That way, when you’re thinking about where you should go, you will explore all the options available to you, versus going straight to the bank and potential getting a higher interest rate. This leads me right into my first point:

Brokers Have A Larger Access

Mortgage Brokers have access to a pool of lenders, which means that there is potential for you to receive a lower interest rate. A lower interest rate could be because of the volume of business that broker has been doing with a specific lender or perhaps a lender relies solely on brokers to provide them with lending opportunities. Whatever the reason may be, these relationships with lenders may allow you to take advantage of a lower interest rate on your mortgage.

They Do The Looking For You

When you are looking at a bank you end up having to do a lot of the legwork. You have to go from bank to bank to see who has the best rate that fits what you’re looking for. Who has time for that? Mortgage Brokers have access to a lot of different lenders, including ones you wouldn’t have access to on your own, which means they will be able to tell you about the different rates that are available. On top of that, they might even be able to save you some difficulty down the line by making sure you stay away from any lenders who may have a strange fineprint in their lending contracts.

Less Stress

This one is key! Buying a home and trying to find a mortgage is no easy task. It’s stressful! By working with a Mortgage Broker, they take on the bulk of that stress. They work to find you the best rates, they get all the paperwork together, they ensure everything is on track, etc. Which means, you can focus on other things that need to get done before finalization. Doesn’t that sound amazing?

Services Are Free

You do not pay the Mortgage Broker. The Mortgage Broker is paid by the lender. Now, you might be thinking that maybe that’s a disadvantage because that means they might steer you in the direction of the lender who will pay them more versus the option that’s actually best for you. This is incorrect! Mortgage Brokers rely heavily on referrals in their line of business and therefore work tirelessly to ensure you are happy from beginning to end. They do this with the hope that you will become a lifelong customer and also tell your friends and family about your positive experiences.

They Are The Experts

In order to be able to sell you a mortgage, Mortgage Brokers and Agents have to be properly licensed. This is untrue when it comes to, let’s stay, the staff inside of a bank. Anyone inside of a bank can sell you a product that they have. This includes a mortgage. They do not need to be properly licensed or trained, which means that you might be sold something that isn’t right for you. This is a huge decision and a big undertaking. Wouldn’t you want an absolute expert handling this affair for you?

 

These are some of the simple things that show you that working with a Mortgage Broker or Agent is actually to your advantage. While walking into a bank may seem easy and reliable, working with a Mortgage Broker or Agent is still as easy and reliable, it also means you get better rates and so much more!  So, I encourage you to look at all of your options before making a decision because the easiest option, such as a bank, isn’t always that easy or worth while.