Be like 'Buyer A'

“I’ve never worked with someone like you before when buying houses … it makes me wonder how many times I’ve been swindled or made bad decisions – thank you for walking us through everything!”

This note came from a repeat home buyer who works as an engineer. Buyer A spent a lot of time with me analyzing their family finances to choose the best financing structure for their move out of the area. They spent over $30,000 less than they originally might have spent due to our strategic planning arrangement. And with local lending, they had personal attention throughout the process, and a single point of contact: Me.

Buyer B was shopping online for their home loan. When told of this, I did a local comparison and beat the rate, the payment, and the closing costs. Buyer B really wanted to use their online lender but agreed to hear me out. This was not an easy approval, so we structured the file to get their earnest money deposit back at the close of escrow. You read that right: They were going to get into the new house with no net cash expenditure.

Along the way, Buyer B decided they could spend some cash at close, after all. Instead of comparing apples-to-apples on the day of their decision, they used my old quote and structure to compare to a new day and different structure, with the rate advertised online.

By the time I found out and beat their online deal again, they had begun submitting documents electronically. Time will tell if their virtual lender gets things closed on time and as promised.

What can you learn from this? The interest rate market has been super volatile since the election, and interest rates move throughout the day. There are still up to twenty-six pieces involved in a rate quote, so what you see on the screen likely will not fit you. To boot, the financing structure you think you want may not actually be the best use of leverage, so you may be spending loads more than you optimally should.

Get off the keyboard and talk to your local mortgage advisor before you sign up for your largest debt ever. The web is great, but it can’t personalize the strategy and service you’ll get from working with proven professionals here at home.

Tammy Engel is your local Mortgage Advisor and has been certified by USA Cares as Military Housing Specialist. Contact her at 661/822-7325 for help with purchase, refinance, and reverse mortgage.