Catchy title, eh? I don't want this to be a scathing documentary advising the masses to not work in the Mortgage Industry, yet I do want to state a spade as I see it. I learned long ago to never treat or think about another's job as if it was ‘easy' or ‘anybody' could do it. I never wanted to generalize, yet I do. (I'm working on that.)
Back to my point though, sometimes I hate doing what I'm doing. It has more drawbacks than reciting marriage vows with Elizabeth Taylor. I've faced it (not reciting marriage vows with Ms. Taylor), but here it is...you are strictly commissioned-based, you rely on ‘other' people's money, and at one point in time you could get into it with no knowledge or training or education at all. As far as the latter, I'm thankful for that because I was one of ‘them.' Now, I'm damn good at what I do. That does not mean I always like it.
It's no huge secret that this Real Estate Market (from a money perspective) is in challenging times. Is ‘challenging times' not the most bull-shit political statement you've ever read? Well, I'm not about all that but I do think there are reasons for our current situation. Here says me....
-Products & Pricing are changing daily and rapidly. It's hard to keep up. One day you can concretely pre-approve somebody and the next day that pre-approval is gone with the wind that breathes from Mother Earth.
-Common Sense is still a rumor around here. Few lend against it, for lending on a portfolio line makes so much more sense. Right.....if $100.00 bills landed on your lap in multiple masses, then it makes total sense. Money is the root...the barometer....at times the very charge we live by and under. It's cool if you have it, un-cool if you don't & see the talking heads that have plenty of green and no common sense.
-Interest Rates. Heck, I'm starting to hate the term. A few weeks back I quoted a former client an interest rate on an investment property. I told him he could get a fixed rate on a 30 year term of 6.25%. He retorted, "That's way too high. I think I'll wait until they drop in the 5% range." Yup, he's a bonafide idiot in my book. Sorry Mr. Consumer, but you are being ridiculous.
So with these things I hate about my job, I'm begging anybody who may read this to be a smarter consumer, for it makes my job easier. Here are a few ideas on how:
-Monitor your credit score. These days, lending is so credit score based that it's more important than ever to have a pulse on where you are at. While government programs such as the FHA aren't credit score driven per se, they aren't always the best route or even an available route to take. (More on that at a later date....)
-Exit Strategies. If you are a Real Estate Investor, make sure you have several. As an investor of any sort, you probably should. The past few years have been a spoiled bunch, with interest rates so low and so little money out of one's pocket to buy Real Estate. With 100% financing on Non-Owner Occupied Properties so prevalent at one point, it probably makes the founding fathers of this land roll over in their graves. Investor = Investment. Enough said, I hope.
-Work with the right people. If you are looking to buy a home or sell it for that matter, your first call should be to a REALTOR to help you along the way. If you want to know how much your home is worth, contact an appraiser and set the appointment. If you are applying for a Mortgage of any sorts, talk to your local bank or credit union, a mortgage broker, & your rich uncle. See who has the best terms & service. While we can quote you rates and terms all day long, nothing replaces being able to talk to the person behind the quotes...especially if things change for whatever reason. Personally, I don't mind hearing ‘Bad' news as it happens.....I mind hearing ‘Bad' news when the transaction is already done.
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