(Part 2 in a Series)
When contemplating buying a new home, most shoppers think about the financing as an afterthought; something to be considered after they find a house. This might have worked years ago when everyone qualified for a mortgage. But it was never a good idea.
Since 2008, I’ve heard countless stories of home buyers strutting around with claims such as:
- “I have great credit. I won’t have any problems getting a mortgage.”
- “I’ve been with my bank for years. I’m sure they’ll give me a mortgage.”
- “I plan to put a huge down payment on a house. Banks will be falling over themselves to lend me money.”
Then months after applying, they’re shocked and bewildered that their mortgage was denied. These problems are almost always avoidable.
The days of easy credit are long gone. The pendulum has swung far to the other extreme and even good borrowers are having difficulties obtaining mortgages. But despite the doom, gloom, and horrible experiences heard from people going to banks, you CAN still get a mortgage.
However, if you want your home-buying experience to go smoothly, you need to change your mindset and prepare early.
Before you go out looking at open houses, you need to get prequalified. But don’t go asking some bank salesman to do the job! A five minute conversation and a quick credit report just won’t cut it. You need someone who’s going to delve much deeper. You need to work with a qualified, competent, and Certified Mortgage Planning Specialist .
When people fail to work with a Certified Mortgage Planning Specialist, the results are often much more costly than they can anticipate. There have been countless examples of borrowers who, over time, lost tens of thousands of dollars in investment opportunities, lost tax deductions, and paid higher interest charges, with the cumulative effects resulting in a lifestyle goal never attained. And it all could have been avoided with one pre-emptive consultation.
The first superstar to place on your team is a competent, qualified, and Certified Mortgage Planning Specialist. But one superstar can’t carry your team on his own. There are other professionals we need to add to the team as well. Next time, we’ll discuss the next position to be filled.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.