I got a phone call just the other day from a person who said to me “I hear you’re looking to buy a home.” When hearing that, you think that a person is going to offer some kind of insight, or help. Maybe that was just me, but now I know better. Instead they wanted to sell a product – a mortgage.
Here are my take on salesman (as I use to be one). I want to be fair to everybody, let them give their pitch, and then return with an honest “this is worth it” or “I don’t like it.” But that’s difficult, as these salesman may be family friends, old neighbors, and so you want to give them your business just because of that – but what if their product isn’t the best, and then my time is limited so I can’t give everybody a chance. I just don’t like it when salesman turn friends into dollar symbols.
This has diverged from the topic of building a house. Here is the thesis of the post: Be prepared for all kinds of people to come out of the woodwork who want your money as soon as the word gets out that you are building a home.
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Alright, so this may be premature – but we had family come and visit the lot. Everything just fuels to the excitement. But here’s the downfall, everybody wants to give their two cents on how the design should go and they want to put their vision in on it too. As much as I respect that, I think there will be enough debate between my wife and I, so while we don’t mind the suggestions, we just might ignore them as well. Can’t please everybody, just gotta please your wife.
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This is a blog article that I wrote about what I learned about bankers versus mortgage brokers. In the article I advise people to be cautious of mortgage brokers, but I point out the benefits as well. In the end, I think I’m going to go with a mortgage broker, because I have had others who have told me of some good brokers that they trust. But as I say in this article, study it out for yourself as well. Enjoy the read:
Recently I went to go check out some property because it’s that time of my life when I’m thinking about moving into a home (even though I can’t afford it).
That’s got me thinking about a home loan – what do I need to do, what are the best options, and so forth. Here’s about all I know – interest rates are better than they’ve ever been in the history of the United States, and I don’t know how long that is going to stay around.
I work in a real estate brokerage as a web developer, so I asked “who should I go to for a home loan?” and I was given a card for a loan officer who works in a mortgage brokerage. The idea of getting a loan outside of a bank was new to me, I thought everything was done through a bank like Chase or Wells Fargo, or a credit Union.
From what I understand, a mortgage broker is somebody who is like a travel agent, but for home loans. They know the market incredibly well (they eat, breathe and sleep it), and so they know what bank can do what for who in what situation. So when you bring them a little information, they can narrow down the options and find the best one for you… Here’s the catch – when they secure a loan from a certain place, they are paid by the place who offers the loan. Consider it a reward from the lending company to the loan officer for saying “thanks for making sure somebody will give us tons of money. Here’s your piece of the pie.” What that might mean is that the loan officer may not always have your best interest in mind, but rather whoever is going to offer them the most money. Use caution.
Banks on the other hand do not have all the resources that a brokerage has, they simply are able to do what their lending institution has outlined. If the personal banker is offered any commissions, it is generally a straight commission on what your loan is worth. They are making a salary, so it doesn’t make a difference to them, which makes them more objective of what is really going to be best for you.
Often times mortgage brokers will secure you a loan that is actually with a company which is based far away. This can be a hassle, but sometimes it isn’t – the world is now much closer with the internet, but it still lacks that personal detailed feel.
In the end, it may be sixes. The best idea is to talk to your realtor who you trust, and ask where the best place to get a home loan is. Realtors deal with these things frequently, and want you to be in good hands so that you can get in your new home, and that realtor can feed their family.
To summarize:
Pros and Cons of a Brokerage:
Pro: Can sift through the options quickly and directly to get you the best deal
Pro: Access to tons of different lending institutions
Pro: Deep knowledge of mortgages and institutions
Con: May have their best interest in mind by getting you a higher priced mortgage, to receive a higher bonus
Pros and Cons of a bank:
Pro: Straightforward talk on what the bank can or can’t do for you
Pro: You will know your lender personally.
Con: You have access to only what that bank can offer, and that may not be the best.
via Local Real Estate Connection | Hooking YOU Up With Real Estate Search Websites.
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I’ve been talking to my wife, and considering where to build. Right now we live in Logan, so we’ve been looking at homes around here – but we don’t want to live right in Logan. Now let me say this, she’s not crazy about Cache Valley, so we may sell this home at some point. But it feels good to have direction on something, so we’re moving forward with this.
Let me also say that at this point we haven’t talked to any banks so we don’t have any idea how hairy this process it is going to be. I suppose the worse it is, the more entertaining the read for you.
Alright, so we were looking at land. The first one that we stopped in was along 1000 North in North Logan, heading up to Green Canyon, across the street from the church. These pieces of land are nice, they’re about .5 acres, so we called on them. They were asking $125,000! Are you kidding me… $125,000! We can’t do that.
So just last night we looked at some more land about a 1/2 mile North, and saw their master plan and a lot that we loved. So we rolled up and the neighbor was working on the house next door, which was just finished and the family was about to move in. He told us about the area, that there was going to be a park just down the road that will go in, that there will be irrigation water, and that the lots are selling for between $60,000 – $70,000.
He then let us tour this home that had just been built. This home was beautiful! It had gorgeous hard wood floors, tall ceilings, several bedrooms, large open back yard with a gorgeous wrap around deck. Nice lighting features throughout the home, large kitchen area, the biggest laundry and wash room that I’d ever seen… the list continues. It was also about 4,500 sq feet, +/- 400. I asked what the home was built for, and he answered around $330,000 that was including the land, and the contractor.
That means I can build my dream home in North Logan for around $270,000. I am excited.
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My name is Kirk Salisbury, and welcome to my website kirksalisbury.com. I live in beautiful Logan, UT
and work as a web designer
SEO specialist and
internet marketer
at Boomerang Leads.