Many homeowners are facing a crisis because they cannot pay their mortgages. Yes, I know some of these homeowners didn't read the fine print, or ask the right questions when they acquired the loan. However, many homeowners were lured into loans with low rates that adjusted up. When the rates reset, monthly payments rise beyond what many homeowners could afford, and some borrowers are losing their homes to foreclosure. I can't help but feel it is also part of our responsibility as their Realtor to make ourselves aware of our client's situation and advise them on making the right decision. Often home buyers are caught up in the excitement and stress of it all. Overlooking things you and I know to look for. When shopping for a loan, there's a big difference between qualifying for a mortgage and affording it. Yes, it is our job to help our clients purchase a home and close the deal, but I also believe we need to help our clients understand the true ramifications of their loan in order to be an honest, trustworthy and successful agent. After all, don't you want them to come back to you when they are ready to sell? Often, lenders will qualify buyers for mortgages that are too big of a stretch for their budget, so as their Realtor, it is up to us to help them crunch the numbers and show them what they can afford comfortably.
I give my buyers several loan officer referrals. Advising them to shop around for their loan by interviewing each referral and having the officer bring to the table their best loans. Besides, they interview real estate agents for the job, so why shouldn't they do the same when it comes to their loan? The buyer now has the power over deciding which loans work best for their circumstances, and is not trapped into taking what comes along. I also find that these loan officers work harder when they know they are up against a little competition.
Do you help your clients with the big picture? Do you show properties that are priced a little above or below what your clients can truly afford?
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