Skip to main content

Culling is Caring

“I’m not a very productive person, but I recently finished the internet.  When you do, a picture of Bill Gates appears, and you get to enter your initials.”  Traveling between appointments and listening to the radio recently, I heard comedian David O’Doherty share this little tidbit that made me laugh.  As he went on to observe how ironic it was that a bald man was making fun of his hair, I thought more about his internet comment and concluded that this should be the subject of this week’s edition of our award-winning publication.  If you’re scratching your head and wondering where I’m going with this, then you’re probably new to our weekly missive.  For those of you who are veterans, you’re probably just saying, “Get on with it!  I have a flan in the oven and don’t have time for this twaddle!”  To the newbies, welcome!  To the veterans, please don’t invite me over for dessert!

With inventories reaching historic lows in the real estate market and interest rates starting to inch their way up over time, we’re seeing one of two things: a mass exodus out of the industry or a doubling down by both real estate agents and loan originators.  For those of you who are currently wading into the buying pool or are poised on the very edge with your toes testing the waters, this is actually a good thing.  While the lack of inventory obviously reduces your choices of homes, this phenomenon that is causing so many to bail out is culling the herd and leaving you with agents and originators who are serious, experienced, and savvy.  What else does this mean to you, the consumer?

For example, “knowing” your credit score can be quite deceiving.  Just because one of the many services being advertised on TV tells you that you have a credit score that’s 800+, that doesn’t mean you’re going to qualify for the loan you want.  Why?  The reason could be that you’re only six months into a new job in a new industry, so most underwriters are going to require additional factors that will make your loan go in a different direction.  In other words, every situation is treated on its own merits, and credit score is only ONE factor in a sometimes very complex equation.  What you should really do is meet with a mortgage company – even if you’re 12 months away from when you THINK you’re ready to buy a house – and have them pull your credit REPORT.  They’ll then be able to help you craft a plan that will get you a loan approval BEFORE you even start looking at homes.  When you have that approval, you’ll be unstoppable as you go out to look at houses and there are seven other parties who want THAT house.  This is one of those moments when it would be appropriate to stick your tongue out at others.

So, while it may seem intriguing to spend your time “finishing the internet” so you can get to that elusive Bill Gates photo and the chance to enter your initials, your time will be better spent getting ready to buy a home – if you do your loan with me, I promise not to send you my photo.

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

The Power of Doubt

We find ourselves in that weird week between Christmas and New Year’s – that week that feels a bit like the Twilight Zone where no one’s sure what’s real and what isn’t.   Because of that, most people tend to focus on one of two things: eating as much as possible or setting goals for the upcoming year.   The former is squarely focused on the present – how much can I stuff into my gaping maw at this very moment before I pass out and/or puke – while the latter is focused on the future.    Last week, before the Twilight Zone kicked into full gear, I read a short article that resonated with me, and I think it’ll prick up your metaphorical ears, too.   The author of the article is a gentleman who professionally trains Olympic athletes, and he highlights the talents of a particular athlete from the Philippines who is training to be a marathon runner.   He points out that this runner is not a professional athlete, nor does she receive any type of financ...
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