Thank you for taking the time in your busy holiday season to read my new blog. It’s a truly special time of the year. I love how so many spread so much warmth and cheer even if the days themselves are too cold for my taste!
Unfortunately, it’s also a very stressful time for many with the pressure of expectations being a key issue for many. What I mean is that people expect to have a wonderful season full of that special cheer but sometimes find that the season is not what they expect. The key, I believe, is to focus on what is really important for each of us: spending time with the ones we love, appreciating them for who they are and being happy to have another year with each other. Without that clarity of focus, or expectations can run wild and lead not only to frustration when those expectations are not fulfilled, but tragically also to holiday depression, which leads some to make desperate decisions.
Now, why am I writing about this in a mortgage blog? Because the same unfulfilled expectations can lead consumers to make desperate decisions with their home loan applications which could negatively impact their lives for years to come. Picture this: a young couple without significant work experience; a more seasoned couple with income but a poor credit history from falling on hard times; and elderly couple of fixed income who are uncertain of their future finances. Each of these couples hopes for a home loan to finance their new home, maybe even their dream home. They see advertising for low down payment, any credit ok lenders who promise the world for their clients. Suddenly, these couples’ hopes turn into expectations that, in reality, are not realistic.
What these sometimes other lenders fail to tell their clients that nothing comes without a price, and you need to be so careful about the price you are paying, and for what. If your credit is poor, you may qualify for a home loan but at a very high interest rate. The same holds for “special programs” that offer FHA-like low down payments of only 3.5% as well as “no mortgage insurance”, but these are NOT government back programs but rather high interest rate conventional loans.
For example, say you qualified and apply for an FHA loan on a $200,000 house. You pay 3.5% down, which would be $7,000. Depending on your credit history, let’s say you qualified for 5% interest rate. Your estimated loan payment would be $1,400 per month, which would include $90 of mortgage insurance.
Now, with other lenders, you would pay no mortgage insurance. Sounds great right? But your interest rate could be 7%. That’s only two percent more. That doesn’t sound so bad compared to the ridiculous rates credit card companies charge (often upwards of 17%). But going back to the calculation with the same down payment, property tax rate and homeowners insurance, the new monthly payment at 7% would be $1,570. That’s $170 more than you would pay on the original loan.
But let’s says that you’re now under the pressure of getting that loan approved because you feel as though you have no other options. The lender has strung you along and now you risk losing your dream home because of all of the mounting delays. You thought that you would save money by going with a large bank or a broker with a “special program” but in the end you’re on the hook for a much larger payment then you needed to pay, and you’ve spent weeks and maybe months longer waiting then you needed. I’ve had clients that have broken their apartment lease because another lender promised to close their loan but couldn’t get the job done. That’s stress drives people to make bad decisions that affect their family for years to come.
That’s the advantage of working with a lender like me and a company like Fairway. We specialize in mortgages and treat every customer like family. We provide quality customer service and don’t make promises that we can’t keep. We don’t try to sell you with empty promises and hollow advertising. Look at our customer service ratings and reviews. Read about our company. See that my office is one of the top military lenders in the entire country.
I had a horrible experience when I moved to Georgia and tried to buy a home. That experience inspired me to do better, not only for my family but for all the many other families that get caught up in false expectations that lead to nothing but stress and frustration.
You deserve better for your home buying experience, just as you deserve better for your holiday season. Call me today, any time, and I’ll make sure that your experience is a wonderful one.
And if you’re one of the unfortunate families who feel trapped in a process that you know is not right, don’t make desperate decisions. I have helped so many families avoid a financial disaster, and still get the home of their dreams.