How can you teach first-time buyers about mortgages?

I let the mortgage broker do most of the educating about the various loan choices since there are so many programs, and those change often. I just back the broker up with helping to provide realistic expectations -- that they will be contacted often to get many documents, and will remind them of the big 'no-no' to not make any large purchases with their credit card until after Closing.

I spend a fair amount of time with my first time home-buyers on explaining the basics. I typically breakdown the conversation into the following: 1) Mortgage Terminology - Principal - Interest - Deposit - Down Payment - Term - Amortization - Equity - Mortgage insurance 2) Types of Mortgages - Fixed Rated - Variable Rate - Adjustable Rate 3) Mortgage Qualifying - Gross Debt Servicing - Total Debt Servicing - Income Determination (Full-time, Part-time, Salaried, Commissioned, Fluctuating Income) - The Importance of Credit Score and Credit History 4) The Mortgage Application Process

As you dive into basics, it’s so important to remember that this process - and our lingo - are brand new to most customers. Try not to isolate them by using abbreviates for common financial terms such as debt-to-income and loan-to-value. While we know exactly what we mean, DTI and LTV are a new language to borrowers. Take time to explain what these terms mean.

As a first time home buyer, there is a lot of information online but the process can seem overwhelming. Talking with a mortgage officer or realtor would be a great first place to start because they can help you navigate the process.

Preparing the first-time home buyer for the sensitive information that may be requested by the lender is crucial as well. Helping them to understand why such information is needed.

Mortgages are definitely not a one size fits all. Comparing the different types are a must for any home buyer. Be vigilant and don't be afraid to ask questions. Education is key!

A loan officer will look at all your information (credit score, income, debts, etc) and they will work out the best mortgage product for you. There are lots of different mortgage options available depending on your situation; they'll advise on what would be the best option (s) for you.

Listen to your customer! What is their story? What do they want and, more importantly, what do they need? You are their tour guide through this experience. Help them narrow down the options until you find the fit that’s right for them.

I love that today’s technology makes applying for a mortgage easier than ever for first-time homebuyers! For me, the most essential part of the process is having open conversations to understand each buyer’s ideal mortgage payment range. Everyone’s comfort level is different, influenced by their lifestyle, hobbies, goals, and financial commitments beyond what’s reflected on a credit report. For buyers with a longer timeline, I suggest making “practice payments” to themselves. This allows them to see if they can comfortably manage the payment while covering other expenses and helps them build up savings, which can go toward the down payment, closing costs, emergency reserve funds, or even furnishings and landscaping for their new home.

One of the most difficult thing for first time home buyer is saving up for a down payment. So if you know you'll be ready to purchase a home soon, start saving up....and pay attention to your credit score as well.

I'm working with a client now in preparing for the application and approval process. My first advice to her was to "pay yourself first" on starting with saving for the down-payment. She has saved up $3,000 in just 4 months! Her goal is $10,000 and being prepared for pre-approval by her Birthday in November. I've schooled her with the proper tradelines and we've got her score up to 600 from 580 with a goal of no less than 640. Her work history was easy as she has been in the medical field for close to 10 years. She is feeling confident and motivated! And I'm excited and proud with her🤩

If you have any questions, even after the transaction is closed, your realtor and mortgage officer are usually happy to answer any questions and provide ongoing support.

Building relationships is at the heart of what we do as Realtors. This is easily and genuinely accomplished in providing ongoing support and resources throughout the entire process and beyond.

We love referrals! That's how we grow our business so if you know someone looking to buy or sell a house, send us a referral. We'll be thankful!

Providing "top of line" customer service with each and every client and showing my appreciation for their business has ensured me a nice pipeline of referrals. I love what I do in assisting in the building of generational wealth through homeownership!

An experienced Realtor I educate clients about the different types of mortgages Along with different tax saving programs. I make the process exciting taking away the stress of an emotional situation allowing buyers time to focus on the home. While making sure buyers are not married to a mortgage! It has to make sense, opening doors to your next home-sweet-home is an exciting time! But if it doesn't fit your budget then it's not a fit for you! I don't just sell homes, I sell futures a place families gather for many years to come! Doing the do- diligence is important as a veteran Realtor I work with many loan officers making sure your financial needs are met! There are many options finding the best home along with the best loan programs!