Skip to main content

Posted September 21, 2015

Better SAFE than Sorry
Earlier this month, the Community Home Lenders Association posted on their website a side-by-side comparison of consumer regulation required of non-bank mortgage lenders (like Priority Lending) versus banks.  The details are chilling.
Every individual Loan Originator at a non-bank lender must:

•Be licensed
•Complete SAFE Act Mortgage Competency Test
•Complete 20 hours SAFE Act pre-licensing courses
•Pass an independent criminal background check
•Do 8 hours/year of SAFE Act continuing education

Banks are completely EXEMPT from ALL of the above. Further, all non-bank mortgage lenders are subject to CFPB exams covering:

•Compliance with RESPA
•Other statutory requirements

All banks with under $10 Billion in assets are exempt – that’s 99% of all banks.   These facts do not imply that all banks play fast and loose with borrowers and their dreams of buying a home.  However, they do lay out a solid and persuasive argument to encourage buyers to go with a non-bank mortgage lender, without a doubt!

Shiny Objects Can Be Pretty . . . Expensive

Back in May, Trulia determined that new homes cost roughly 20% more than similar existing homes.  Here are some other things to share with buyers:

Disadvantages to Buying a New Home
•More expensive than buying used
•Location probably isn’t ideal
•Despite being new, workmanship might be questionable
•Could be subject to costly HOAs, even if it’s a house
•Neighborhood dynamic is unknown
•Property values might be more volatile
•Construction nearby (eyesore and noisy)
•More cookie-cutter, less unique


Advantages to Buying an Existing Home
•Possibly cheaper
•Better, more central location
•Can buy in an established school district
•Can own in a more reputable and recognized neighborhood
•Old house might have new upgrades
•You can always renovate if need be
•Older houses tend to have more character, custom design
•Could actually be built better than a new home

Comments

Post a Comment

Popular posts from this blog

An Age-Old Concept Reaping Future Rewards

W hy are social media like Facebook and Instagram so darn popular among real estate and mortgage folks?   Hint: the top reason might be an endless supply of memes, cat videos, and the chance to be snarky, but the other reason runs a VERY CLOSE second.   Give up?   Answer:   They’re free – and they really help even the playing field by enabling a one-person shop look and market like an organization who employs an army of wordsmiths and graphic artists. This new century is glorious, right?   With that in mind, let me re-introduce you to a centuries-old concept that is equally glorious – and can help IMPROVE the playing field for you, regardless of the size of your team: karma.   On the subject of “free”, I’m not suggesting that you work for free, but when you freely give of yourself and your knowledge, you’ll see a greater payoff, I promise! Recently, an agent came to us with a question: she has a client who is looking to sell his condo.   It...
Post a Comment
Read more

Get to the Point (Posted February 29, 2016)

As you may have already noticed, there’s some amateur art included in this week’s newsletter.   While it’s certainly better than a crayon drawing that might grace a refrigerator that’s supposed to be “mommy” but looks more like a B-movie creature, we all acknowledge there’s a reason the guy in our office who drew this . . . i s still working in our office rather than making a living elsewhere.   Be that as it may, there’s a point to the picture: is this how you’re allowing your client to choose their mortgage company?   In many cases, it’s probably not too far off.   Agreed, it’s wise to stay on the right side of the law and be sure you’re never accused of “steering”.   With that in mind, many agents tell their clients that it’s completely their decision as to what mortgage company they use (and it is, of course) and effectively step back from the entire conversation – using the illustration to the left, they’re putting the blindfold ...
Post a Comment
Read more

Bubbles: History or Hysteria?

Whether you’re a flipper of TV channels or a die-hard fan of one particular news source (television, radio, internet, or some weird thing called a newspaper), you can’t help but come across a story or twelve on a semi-regular basis about the housing market and whether we’re on a “bubble”.   There are thos e pundits who claim everything points toward the market being on a bubble and how close we are to it bursting, and there’s an equal number who blow off the idea like that’s the most ridiculous thing they’ve ever heard.   What you don’t hear, though, is actual data supporting their arguments concerning a “bubble” in the housing market because it makes for a better story to watch people wring their hands and make emotional pleas and/or flash artificially whitened and perfectly aligned teeth at the camera and say these end-of-days kooks have it all wrong.   Well, buckle up, kids!   THIS is about to become your favorite news source (at least for the next two or thre...
Post a Comment
Read more