Duking it Out Between a Rock and a Hard Place.
What Homebuyers SHOULD Know
VS What They WANT to Know
As a mortgage lender, I find that much of the time I am in that proverbial "between a rock and a hard place".
After almost two years now of working with the new Loan Application Disclosure forms (mainly the Good Faith Estimates and the Truth-in-Lending Disclosure), I wish I could say that clients were finding these important documents, and the whole mortgage process, more "understandable". But I don't think I'm seeing that. Sorry to say.
I'm duking it out with myself regarding this issue. I believe I understand, as their experienced mortgage lender and advocate, what's important for them, the client to know and understand. And I'm also required to make that information available and also ... once again ... "understandable".
But on the other hand (and what I'm duking it out with myself over), what I hear and see being expressed by my clients as to what their needs are is quite different. Most do want to know they are protected as consumers, but do not want to hear the particulars.
Basically, I hear from my clients that they want to know these 3 things:
- What's my total payment going to be monthly?
- When will I know when my loan is approved?
- How much money will I need for Closing?
And therein lies my quandry. There's so much MORE they need to know and understand. For their own benefit. By law they need to hear it. But ... a lender saying it and the client actually hearing it are two different things.
I have to admit, I still am sometimes greatly amazed, that as important as financing is .. and just how greatly it impacts the lives of my clients ... that the application process remains such a hated, overwhelming process just to be endured. I'd think clients would want to be more engaged. Be going through things with a fine tooth comb. But from the majority, I am seeing the opposite. There's little interest in taking active part in it. Other lenders have expressed to me that they are seeing much the same.
I've tried to analyze why this is the case. And yes, I know many will say it's the overwhelming number of financial documents required, personal information demanded, tedious minor (seemingly insane) underwriting requirements needing to be met that wears them out. And there is truth to that. But I picking up on this attitude prior to the start of the process, so that can't be the answer entirely.
I'm personally beginning to think that most home buyers have only "so much" emotional capacity to tap throughout the process of buying a home. And it's been worn thin by the time they get to arranging their financing.
Let's face it. Home buying ... the actual viewing and consideration of homes themselves within the current market ... is largely unrecognizable in comparison to the home buying process of the past. Home buying can be hard work, especially when still worrying about the financial aspect of buying while doing it.
So ... how do we within the real estate industry, both agent and lender, tackle this problem? Because it DOES affect us both, as well as our mutual client.
I know when I was growing up, my parents demanded that my chores and homework came first. Playtime second. Maybe this is the discipline with which buying a home should be approached also. Get the financing education and mortgage process more substantially behind a client first. Get the loan paperwork and approval secured ... then move on to the more enjoyable part of home buying. The actual viewing of homes. I personally think this could prove very helpful.
Agents would know what properties they can, or cannot, show prospective home buyers more clearly as a result. There would be less wasted time .. less wasted effort ... less wasted emotion and energy on everyone's part.
Perhaps the education of a potential homebuyer should begin with the information, "training", and reinforcement as to the best and most efficient and beneficial order in which to start the entire home buying process?? Maybe this could restore some of the pleasure buyers should be feeling and experiencing when purchasing a new home?
This is not going to be a remedy for every situation, or client. There will be those instances where it just will not apply. But for others, what say you??
* Want to learn about the Mortgage process? Have questions regarding mortgage financing or credit? Work with a mortgage lender that has 35 years of expertise and experience to help you through the process successfully. Contact me today!
I can be reached at any of the following:
Direct: 815.277.4036 Cell/Text: 708.921.6331
Skype: 630.219.1316 Email: gene@chicagobancorp.com
Website: www.genemundt.com
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Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
