Be Careful NOT to Be Your Own Worst Enemy


Filed under: Tips for Realtors


We’ve all heard the phrase “your own worst enemy” before.   We probably have all used the term before when referencing a friend or relative who continually makes the same mistake.

cautionIf you aren’t careful, however, it’s possible for a real estate agent to become their own worst enemy and derail a transaction, and usually it happens unknowingly and with good intentions.  Unfortunately, regardless of the good intentions, the deal could be lost, so practicing a bit of caution here is always the best practice.

Here’s the typical scenario…

A nice young couple makes the decision to purchase a new home and they begin their search for both a property and a home loan.

They meet with a lender to discuss their financial situation.  It turns out that they have some circumstances in their past that don’t disqualify them from financing, but their options for financing are a bit limited.  In their price range, the loan that they can qualify for has an adjustable rate and they have to pay mortgage insurance. 

Perhaps it’s not the best loan, but it’s the best loan for them because it’s the one they can qualify for!

So now they have their loan squared away and they start the home search with their Realtor.  They end up spending quite a bit of time with the Realtor and in the process, they start talking about everything from kids to hobbies.

One day, Mr. Realtor makes the completely innocent comment “I sure wouldn’t want a loan with an adjustable rate.  They’re just too dangerous.”

Oops…  Mr. Realtor just made the young couple question their decision on financing.

The couple calls their lender and says they want out of the adjustable rate loan and they want a fixed rate.  Unfortunately, as previously mentioned, they just don’t qualify for the payment associated with fixed rate loan.  If they want to stay in their desired price range, they need to stay with the lower payment of the adjustable rate.

Well, the buyers decide that since their agent warned them against an adjustable rate and they can’t get a fixed rate for the home they want, it’s best to just stop looking and rent for another year.

Transaction ends on a sad note.

Moral of the story…

Be careful about injecting too much of your opinion on your buyers.  Remember that everyone’s situation, background, and finances are different and often we must look not for the best overall financing, but for the best temporary financing that gets a buyer into a home.

If you have any questions or would like to discuss anything regarding financing, feel free to give me a call or shoot me an email at any time.  Click here for my contact info.

 


Franklin Loan Center | NMLS 237653
Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 4131316
http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/237653
For questions or concerns please email info@franklinlc.com