And this time I want to talk about how the loan process is different
The application has been made, now just all these paperwork is going on
And from a customer standpoint, you have no idea what is going on, it’s confusing
And it’s scary right?
When you first buy a house you are sending out a cheque for the earnest money deposit
You are sending out a cheque for the inspection
You are sending out a cheque for the appraisal
You are thousands of dollars in.. you haven’t been approved
You don’t know if the deal is going to work….
It is a very… very…stressful time for people and I get that
I try to go a little bit further and address some things
some concerns that people have.
And one of the biggest concerns that people have,
has to do with just the BIG PICTURE financial struggle
I just talked to a client who is really interesting and they said “I want to put down 20%”
And I said “Why?” and they said “We want to avoid mortgage insurance”
Now it is real easy to just take that and move on, but I went further and said “Why?”
They said “It’s $200-$300/month and we can’t afford it.”
<crickets sound effects> Ok…It’s NOT….
So I ran the numbers, the mortgage insurance for that particular client
And that particular situation with 10% down was $41.67
And that’s not a quote for you guys… don’t get all too compliance on me…
But look, my point is there is a misconception about that
On a particular house they were buying, there were some things they wanted to do
They were selling their car and their house, and 20% down would’ve strapped them
So I sat down with them, and put together a proper financial structure
That met all of their needs. It’s real easy to just take the 20% down, write the loan and close it..
I mean that’s what the client asked for right?\
That’s the justification people use in my industry
The justification,, well… I don’t know… SUCKS!
I don’t want to go to a doctor and tell the doctor how to fix me
I don’t want to go to my lawyer and tell my lawyer how to try a case
Somebody shouldn’t come to me and tell me how to structure their mortgage
That’s my job. And my job to do it properly is to understand them
I do an in-depth financial analysis, and again I do this at the strategy session
But I talk further about specifically on the house they are buying because of changes.
And another source of stress is insurance quotes, I am not an insurance agent,
I don’t own an insurance company, I don’t make a dime off from insurance
BUT, I get all my clients insurance quotes, because like I mentioned
That can move your payment. By the way,
I get it upfront, literally in the first 48hrs, you have insurance quotes
And please go out and get your own..
But I try to go that extra step to put people’s minds at ease as much as I can
Here’s the thing.. You are still going to be stressed
You are still writing cheques, it’s still not approved, etc…
But I can check off a couple of boxes for you
And hopefully make the process that much easier
So you look back on it with a smile on your face instead of fear in your gut
That’s what I got for you
I’m Scott DiGregorio, Your Mortgage Guy
I’ll see you on the next video, take care