Mortgage and real estate markets and matters have become staples in the media in the last few years. That’s good and bad news for the industry and consumers. Headlines such as “Mortgage Interest Rates are Low!” and “Real Estate Prices are Soaring!” sound great and they can be good things – depending on many other factors. The trouble with a lot of news reports about real estate and mortgage is they don’t tell the whole story.
The Personal Touch Matters in Mortgage. Published rates – especially those that are heavily advertised – are often misleading. A specific interest rate may be available, but few potential borrowers may fit into a narrow category able to take advantage of it. Many people have gotten excited by attractive offers, visited a website, perhaps spent some money on a credit report and been disappointed. Avoiding this trap is easy: Always get your mortgage rates and available terms from a live person! Get referrals, do some research and make sure the lender you’re getting your information from is experienced, licensed and available for you from the time you start exploring a mortgage through the entire process. True lending professionals will stay in touch with you far beyond your closing and will check in with you over the years. Professional lenders with your best interests in mind help you make sure you have the best mortgage and know all of your options at different times and during different market conditions.
‘Local’ is Critical When it Comes to Real Estate. Stories about rising – or falling – real estate prices can be very misleading. Trying to average out home prices or market conditions would be like a TV weather person quoting an “average national temperature.” That number would be virtually meaningless in Minnesota and Arizona in January because it wouldn’t be close to accurate in either place. The same holds true for home values. Home prices are affected by many things and there can be “pockets” within the same market area where values are rising and others are declining or static. That’s why it’s critical to work with full-time, professional real estate agents who know and regularly work in the areas you’re interested in.
Before and Beyond “The Sale.” The time to speak with a professional Loan Officer or Realtor is not only when you think you are ready to buy or sell a home – in fact, checking in before you’re ready can be even more helpful so you can plan and prepare for your short and long term goals. Qualified, professional Loan Officers and Realtors work with their clients on a continual basis – even when they’re not involved in a transaction.
The media and the Internet are great sources for general information, but the only way to get the whole story is to discuss your ‘personal story’ to qualified professionals who can provide you with accurate information about your options and your area.
Kelvin Kaemingk is Regional Vice President with American Equity & Mortgage Consultants (AMEC), leader of the My Smarter Mortgage Team and Co-Host of the Real Estate Chalk Talk Radio program based in the Minneapolis-Saint Paul area.
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** Kelvin Kaemingk is Regional Vice President with American Equity & Mortgage Consultants (AMEC), leader of the My Smarter Mortgage Team and Co-Host of the Real Estate Chalk Talk Radio program based in the Minneapolis-Saint Paul area.
