A Guide for Consumer Choice in Your Next Mortgage

So You Think You're Ready to Purchase a New Home?

Posted by Joel Asbury on Thu, Sep 04, 2014 @ 07:00 PM

I know what you might be thinking right now - "I'm ready to purchase my new home, but I don't know where to start." The answers to your questions aren't really that difficult, so for the next few paragraphs of this post, I will help you answer the basic questions all new buyers have when purchasing their first home. Some may be no brainers. Some may be things you may never have thought of before. All will enhance your purchasing knowledge - that's a guarantee. So if you're ready, sit back, relax, pick up your favorite beverage, and let's talk purchasing!

New Home 

So you think you're ready to buy a home, you have some questions about it, and have no place to start. . . that sounds like many (mostly young people) these days that I come across on a regular basis. Today's 1st Time Home Buyer was born in the digital era. As a result, they begin to search for the "perfect" place to begin life out on their own online. When they've found a place, they get stuck - unless they're already working with a Realtor or they have spoken with a mortgage representative first. Why does this happen? Because the 1st Time Home Buyer needs to consult with a financial representative prior to even searching for their first home - with or without a Realtor - to be successful and make the process as hassle-free as possible from the beginning.

Just recently, I was able to provide such services for a client who was just nineteen (19) years of age! What a motivated individual to be buying their first home at such a ripe young age! How was this successful, you ask? Easy - because all parties involved in the transaction understood the process of how following the right advice would help my client reach their ultimate goal - owning a home at the age of 19! Here's a brief analysis for how the three parties involved interracted to create the successful buying experience:

First - as a Realtor, it is important to know that lenders drive transactions when hard money is not involved in the purchase of a home. What does that mean? As a Realtor, you should be aware that not every transaction is the same. Not every person you bring to the lender will be qualified. Not every person you ask a lender to qualify will want to purchase at the top of his/her budget. And, when a Loan Officer asks the Realtor to provide certain information, it is not because they want to just have an excuse for another chat, but because the Lender/Investor in the new loan asks for it. The Loan Officer/Realtor relationship drives the transaction as much as the communcation between the Lender/Investor and the Loan Officer does. It always helps a 1st Time Buyer to choose a Realtor that will be able to work with the Loan Officer, instead of against by trying to explain financial information they have no business doing.

Second - as a Loan Officer, it is important to advise the 1st Time Buyer in a manner they are most comfortable - either in person, over the phone, online, or otherwise. If this sourds like a no brainer, it's because it is. When a client has questions about the loan process, great Loan Officers are quick to answer. The difference between a "Great Loan Officer" and a "Good" one is that a "Great" one anticipates these questions ahead of time. He/She explains everything upfront

Third - the actual Client needs to be proactive to make the transaction work. It is important to understand the following if you are lost with everything else: The Loan Officer and the Realtor can only push the transaction along so far. First Time Buyers are either one of two things - motivated or scared. Case in point - I also at the same time I was closing the nineteen year old's mortgage was working on a twenty-seven year old's file when out of the blue, that twenty-seven year old decided they no longer wanted to go through with the transaction. I suspect this was because the Realtor/Loan Officer relationshp was misunderstood by the 1st Time Buyer. The Realtor wanted a budget. The Loan Officer gave one. The 1st Time Buyer agreed to sign a purchase agreement near the top of that budget. After seeing the actual numbers for that transaction, the 1st Time Buyer became frightened and moved on elsewhere. Because this client was scared, the motivation to actually purchase was non existant. As a Loan Officer, it is my job to provide the numbers. As a Realtor, it is their job to bring the prospective buyer to the prospective new home. The Client needs to secure financing first, before the Realtor shows the Client properties they would be uncomfortable purchasing in order to avoid frightening the Client away from the transaction all together.

I know you have had a lot to read and take in. The Bottom Line to take home from this message is twofold - 1. Get your pre-approval before being shown possible homes 2. Trust your Loan Officer and Realtor to work together to help you purchase that new home. If you have any questions at all - AT ALL - do not hesitate to contact us by clicking here first. Or, you should follow the orange button below to talk to me directly. I will be more than happy to assist you with your new home purchase. In fact, I look forward to the opportunity to serve you in this capacity. So. . . have you learned anything? Click below to get started today!

Basic Pre-Qualification

Tags: Home Buying Tips, home purchase, 1st Time Home Buyer

About Our Authors

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Tony Gregory regularly contributes to this blog. He is an experienced loan officer in both residential and commercial lending from a commercial banking background. He participates daily in the economic and political activities that continue to shape this industry. You can email him directly at:

tonylends1960@gmail.com

Joel Asbury is Sr. Vice President of Compliance Operations for Winterwood Mortgage Group, LLC as well as a licensed Loan Officer. He regularly consults potential clients for the Sales Team while maintaining relationships with former ones via multiple marketing channels as well as developing new business through new lending channels. You can contact him directly:

jasbury@winterwood.net

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Linda Begley regularly contributes to this blog as a Reverse Mortgage Commentator. She has been a teacher in the Public School and Private School sectors, but then after retirement decided she could no longer take not being able to teach! It is her life passion to educate, which she carries on with her Reverse Mortgage seminars for not only the Public Sector, but the Financial Planning and Accounting business sectors as well. Linda has recently rejoined Approved Mortgage A Winterwood Mortgage Group as a Reverse Mortgage Consultant. Email her today at:

lbegley@approvedmortgage.com

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