“Back in the day” when things were a LOT more stable in the economy and money was flowing with ease, Lenders had more difficulty differentiating themselves other than promoting the lowest rate.
Their marketing for “LOW RATES” created that kind of market. Home buyers looking for a mortgage had effectively been trained by the Lenders’ marketing to shop for the lowest rate . . . Other considerations were often ignored . . . Because pretty much anything would slide through underwriting.
Nowadays . . . rates have been at “Historic LOWS” for a few years.
The Macro-Economic environment is such that money is trickling (not flowing) as underwriting requirements went to the other end of the spectrum and became restrictive.
Home Buyers often don’t enter the game at all because of all of the myths out there relating to the amount of cash they will have to bring to closing . . . and the difficulties they witness other folks are encountering as they jump through hoops to make it to that “finish line” and hear the golden 3 words: “CLEAR TO CLOSE”
Things are improving!
More money is flowing albeit with a tad bit of trepidation.
NOW we are in a market in which lenders can differentiate themselves.
Clearly . . . The innovators are quickly catching the attention of Buyers and REALTORS.
Here’s some of what I have heard recently:
- Offering “Leverage” for REALTORS who bring them business – Things like sponsoring events, providing printing for Marketing, etc
- “Smooth Processes” – tweaking the processing and underwriting of the loans to relieve some of the uncertainty.
- Offering leads to REALTORS who agree to reciprocate
- Following up on Leads for REALTORS
- Providing web-tools for marketing
All of these ideas are good . . . BUT . . . They’re the 80% (Trivial Many) pack who are all offering pretty much the same thing most of their competitors offers with different packaging.
As a Principal Broker, Coach/Consultant for REALTORS and a Real Estate Sales Professional, I am on the perpetual quest for that “Holy Grail” of a truly differentiated lender . . . that person who offers something that NO-ONE else has had the chutzpah to offer. These are the “Vital Few”
I feel it is my duty to my agents and all of our clients not to rest in that “comfort zone” of running with the pack and accepting the “mainstream products” . . .
and so I seek . . .
Some recent “Goldmine finds”:
- 100% financing with NO Mortgage Insurance for 1st time Buyers . . . No hidden tricks – There are income limits and 680 credit score requirements . . . Applicable for anyone buying a house up to @ $210,000 with not more than $500 cash in the game
- Up FRONT COMPLETE underwriting of the buyer within 48 hours of initial loan application . . . All that is needed to close is a fully executed contract and an acceptable appraisal
- 100% financing with no Mortgage Insurance for high end properties for certain professionals (Doctors)
Many of these programs are made possible through the use of “Portfolio Loans”
Imagine that – Banks lending their OWN money and creating loans that conform to their OWN guidelines rather than someone else’s.
Hmmmm . . . Way back when the economy tanked and the “Private Investors” lost faith in the markets and withdrew from the “Mortgage Backed Securities” investment because of lack of securitization . . . the word was that our goal would be to increase securitization enough that they would come back into the game.
We would do this by churning through the pile of foreclosures . . . reduce the house inventory . . . by SELLING MORE HOUSES.
These new, creative lending options are (IMHO) the leading edge of the return of Private Investor Money for the funding of Real Estate Transactions . . .
and this is FABULOUS news!
so . . . If you’re in Middle Tennessee waiting for the market to improve enough that you can buy a house at a fair price AND get approved for a loan that’s tailored to fit YOUR financial picture . . . NOW is a great time to dive in . . . Just contact me . . . I’ll hook you up with a lender who will understand your scenario . . . and then help you find that right house.