Buying a new home, especially for a first-time buyer, is a tricky task. Real estate market has many pitfalls that may be confusing for unwary people. Digging into details may be depressing, especially if the borrower has already got rejection from his bank, doesn’t have a regular income or can’t afford a down payment.
From the perspective of an experienced mortgage broker, Alex Shekhtman from LBC Mortgage, discussed how to overcome the fear of buying your first home.
You have been in mortgage loans business for almost 20 years. Can you say what makes the first house purchase so special?
For many people, the purchase of their first home is a special and memorable moment. It marks the beginning of a new chapter in their lives. Its give you the feeling of finally having a place to call your own and the pride that comes with knowing you’ve made a wise investment, its it is a symbol of stability and security. Owning your own home can provide peace of mind and a sense of belonging. Its also really exciting – you, becoming an owner of your first house, getting rid of a landlord. And these are just a few of the main feelings driving you before, during, and after the first house purchase.”
Why, in your opinion, so many first-time homebuyers are afraid of the mortgage?
“We’re speaking now about one of the most popular questions. A lot of first-time homebuyers are afraid of a mortgage because they don’t really understand how it works. When it comes to getting a mortgage loan to buy a house (especially if it’s the client’s first property), a lack of experience and general education about mortgages always produces many fears about the whole purchasing process.
At LBC Mortgage, we believe that knowledge is power. That’s why we pay close attention to mortgage education for our first-time homebuyers, when we talk to clients we go in all details about the process. We want them to feel confident and informed when making such a big financial decision. To that end, we’ve created educational materials including articles, mortgage step-by-step guides, checklists, and webinars.
They’re all available for free on our website because we want everyone to have access to this valuable information. I hope that by providing this useful resource, we can help more people overcome their fear of mortgages.
Overall, our job is to guide the client from the very start of planning the purchase to the final destination of closing the loan. We take into account all the factors that affect the approval of the loan application and explain to the client all the possible consequences of certain decisions.
What I want to say to the prospective first-time homebuyers out there is – don’t be afraid to take the plunge – with a little bit of preparation and the right mortgage lender you can make your dream of homeownership a reality.”
How long does it take to get a loan approval?
“We have the same day pre-approval. Of course, it takes time to analyze the financial conditions and living circumstances of the client, the property person is going to buy, and to select the mortgage program: with the affordable interest rate, comfortable down payment and satisfactory loan period. We call back and discuss all the inputs, the best programs the client can apply for and the money saving strategy client can pursue.
What are the most common difficulties the future homeowner face?
“The most common difficulties are typically financial ones: lack of money for the down payment, lender’s rejection due to lack of regular income. But, it’s not just that, lenders, for example, can reject the loan application if the applicant doesn’t have a credit history though still can afford a down payment.”
What can you, as a lender, offer in such cases?
“The universal advice I can give is addressing the broker long before you actually ready to buy a house. The earlier you formulate your loan strategy, the less troublesome the whole purchasing process will be. Also, before choosing a home to buy, we recommend you to first talk to broker to find out your comfortable payment. This will give you peace of mind that you can afford a new home.
After our initial consultations with the client we can create a game plan and offer the best options for client case. We will be able to check if regular conventional or FHA program will work but we also offer unique mortgage programs that big lenders don’t offer like: Non-QM, Profit and Loss statement program, Non-Document Program, Bank Statement Program, Investors Home Loans, VOE Mortgage Loans, and Foreign Citizen loan. They include options for borrowers who can’t apply for conventional loans because of lacking usually required income documents.
As you can see, despite all the limitations and barriers in the loan approval process, there is always an option for everyone.”
Who is your regular client?
“I don’t think, that there is some kind of “regular client”. All people addressing us to help them with the mortgage loan are very different. Our doors are open for everyone. We are always glad to meet in person with our clients during consultations as it helps to make a contact, dig deeper into every other case and, finally, help people to become homeowners.
Despite the financial basis of our business, the personal contact here is just as important. Our main goal is not to sell anything, but to help our clients make the best decisions for their future. We believe that this can only be done through open communication and a dedication to providing the best service possible.”