Every Client Is Unique

When you stop and think of the mortgage lending business, you have to realize that clients look to you as a professional to guide them through a large financial transaction (sometimes the biggest transaction of their lives).   If you take a minute to understand the “gravity” of that responsibility, it should motivate you to want to be the best version of your professional selves.

The numbers are impressive when you look at fees on a real estate transaction.  However, that should not be the sole barometer you measure your success with. If this is truly your passion and purpose, then helping the client achieve their goals is the true “Win”.  The money should be a by-product of your ability to provide a service.  We as real estate professionals should treat our profession with the attention and respect it deserves.  You should be aware of the ever changing guidelines of the mortgage lending industry and real estate regulations.  Every client is unique, with their own set of challenges or individual goals they wish to achieve with their transaction.

As a mortgage lender (or loan officer), at the very minimum, you should know your guidelines and those of all your competitors. You should be able to give clients multiple scenarios instead of just yours.  In some cases, I have referred clients to other mortgage professionals that I personally know who may have a product that I’m not able to offer.  This will separate you from the other guys in the same profession.

In this business, it’s imperative that you consume and process information constantly; the mortgage regulations are frequently fluctuating. You will always feel confident, if you’re prepared.  Your clients engage you because they believe in you. Therefore, your fiduciary responsibility is to get them the best financial product that they qualify for.  When you know better, you do better!

Fear Is For Others

As I write this blog post today, it is the midst of the Corona Virus “Pandemic”

My post is not so much about the virus and the mind-set of the world concerning it, it is more on the topic of fear itself.
The emotion of fear affects some of us so severely, that it mentally “shackles” us. It can affect our decision making, it can affect our perspective on certain things in life, make them seem so much farther  away, or so much worse than they actually are.

The truth is that fear is necessary, it makes us more “self-aware”, but to build on that statement, your relationship with fear is what you must define, you can acknowledge something, but don’t let it stop you. Be cautious, but not stagnant.  The truth of the matter ( in my opinion) is that everything always seems so much worse that it actually turns out to be.

When I went to purchase my first house, I was denied by “Northfork” Bank. I went to them because as a small business owner and banked with them. (I owned a liquor store at the time.)  They didn’t even explain to me why. This was in 2006 when everyone with a pulse was able to get a loan.  But my wife was pregnant, and I had to find  a way.  I was just denied and for most people that would have been the end of the story.

But I HAD to make it happen.  I didn’t accept the no, I found a way. In today’s market if one lender tells you it’s not possible, then I have to say this, “you’re talking to the wrong lender!”

This can be applied to anything in life, if something is TRULY important to you, then your desire should always outweigh your fear.  You need to control your fear and not let it dominate you. You can pay attention, but you must also build your own fortitude.You have to base you decisions on clear objective  not on emotional response.  Your subconscious does not know the difference between what is actually happening and what you want to happen.

Choose your thoughts wisely…. Like Bruce Lee said “fear is for others”

Perception VS Reality – Closing A Transaction Almost A Dozen People Are Involved

When people see the social media posts of clients celebrating closings, naturally they only see the final act of a process that involves a variety of different parties.  I’d like to give you a glimpse of the group effort that is made and parties involved in closing deals.

Let’s break it down. ( My next post will break down each profession further.)

  1. Loan officer- (The Money Man) – this is the banker/broker who will look at your financials and advise you on your buying capabilities, and (possible) payment structure. This person will also be your wizard, shaman, captain, commander in chief and will inform you if there are any issues on your credit that may raise an eyebrow.
  2. Buyer’s Realtor- ( Scout/Hunter ) – this person will be working directly with you in order to understand what you are looking for, and will try to narrow your search and present you properties that fit your criteria. This agent works for YOU and will work to get you the best deal possible.
  3. Buyers attorney- (Defensive Line) – This is the attorney that represents you, and will negotiate the contract of sale with the other side (the seller’s attorney). They will protect your down payment with certain “contingency clauses” in your contract to ensure that you are always in a protected position.
  4. Inspector (Dream Killer) – the inspector will visit to the property and note any major visible physical damage, and basically inform you whether the property is livable and/or will need major updates (I.e., roof replaced, termite damage, etc).
  5. Appraiser ( Reality Checker) – Once you go to contract, the bank will then request an appraisal of the property so they can confirm that the value of the property (at the time of purchase) corresponds or reflects the loan amount. (P.S. Sellers don’t usually like appraisers if their Value comes in low)
  6. Title company- (The Umbrella) – When you purchase a property, you will need to get a title report which will show the history of the property and all previous owners. At this time, you will also need to purchase insurance, so that if there are ever any disputes concerning the sale of the property, you will be fully reimbursed for the transaction
  7. Homeowners insurance agent ( in case it goes left) – You will need to purchase an insurance policy, to make sure if there is any physical damage to the house, you will be protected and reimbursed.
  8. Bank Attorney-  (related to the money man above) – the bank attorney represents the bank. At the time of closing, they hold the responsibility of ensuring that your loan gets funded (basically, that the bank gives you the money).
  9. Sellers Realtor- (Gatekeeper) – This agent represents the seller, and has their best interest in mind. They will try to get the best deal for their client (as it should be).
  10. Sellers attorney- ( Party Starter) – This attorney is responsible for preparing the contracts for the seller and will send out the prepared contracts for signature, once your real estate agent and the seller’s agent have agreed on a price.

Hope this helps clarify to you and illustrates all the parties involved.