The importance of building your team
I'm Helping prepare a couple of new buyers early in their journey right now. In the Plan, Prepare, Home journey, one of the most important things to do in the "Prepare" stage is to build your team.
Fictional Jim and Shirley explain why the team building phase is extremely important:
If you don't first build your team, you will not be able to fully come to your potential as a prospective home-owner. The client-agent relationship is founded on trust. Whether it's the partnership with your real estate agent, or your mortgage advisor, there must be enough trust on both sides to maximize your team's efforts in getting you into your home under the best circumstances.
Let me give you an example:
Shirley has moved past the "Plan" stage after overhearing her work colleague talk about getting pre-approved. She knows she doesn't owe much on her student loans and the only other debt she has are some small credit card balances. Her colleague makes the same as she does, so she decides that she also should be able to get pre-approved. But, instead of talking to a mortgage lender Shirley goes online and starts filling out some forms with her personal information. Before she knows it she's got several different people calling her about her "application" when she didn't even mean to fill one out! She just wanted to see what a rough estimate would be on a new mortgage payment and how that compared to what she pays in rent.
After a couple of pushy phone calls asking for her to complete a credit report, she decides that she might as well just try a different site in hopes that they would be a little more patient with her and she could possibly just find the best rates on her own. To her dismay, she again found herself talking with fast-paced and pushy phone calls asking her for info she never even wanted to provide, and not getting the answers she was looking for.
The good news is, Shirley spent a long time online and things she found a great home to write an offer on. So, thinking she was contacting the home's listing agent to tell them she wanted to make an offer, she got in touch with a completely different agent, who, wasn't as pushy but was also not who she thought she was contacting. Thinking she was pre-approved based on her own calculations she told this agent that she wanted to write an offer, so the agent helped her write an offer on the home after asking her for her pre-approval letter.
Shirley got the letter from the first online bank she spoke with, but didn't realize the fine print that it was just a pre-qualification and didn't demonstrate proof of a complete loan application. Her agent provided that to the listing agent on the home, and.....
5 days have gone by and Shirley still doesn't know that her offer has been quickly sent to the bottom of a stack of 17 offers written for this property. She doesn't get the contract.
Meanwhile, there's Jim. Jim's offer is sitting right on top of the stack and is under serious consideration. His agent has taken the time to sit down with him and go over all facets of his home buying preferences and gone together to see a few different properties of interest. Prior to that Jim spoke with a seasoned mortgage advisor from a mortgage bank that specializes in purchase transactions face to face.
Together they went through each of his goals for purchasing, completed a total cost analysis of his high and low ranges for home purchases, and looked at the best opportunities for Jim to save money on his loan. Jim's mortgage advisor quickly noticed that he was just below a FICO score that could get him a lower interest rate, and they worked closely with his agent to discuss a plan to write his offer. They discussed his different options for down payment, and even went over which kinds of things he could budget differently to prepare for a home purchase. By the time Jim wrote his offer his realtor and mortgage advisor both got to know each other as well so they could represent Jim the best way possible, with solidarity.
When Jim wrote his offer, his realtor spoke very highly of Jim's mortgage advisor and told the listing agent that he's very easy to get a hold of if they had questions. They even suggested that Jim's advisor put in a call to the listing agent to go over any concerns on his financing. During that phone call Jim's advisor mentioned that they're able to not only close in under 21 days instead of 30, but that he was already fully pre-approved by an underwriter!
Since the sellers were hoping to sell the property quickly, they covered any and all concerns on the financing, and they saw that Jim's whole team was very well organized and worked well together, it's no surprise that Jim's offer was accepted over Shirley's.
Jim went on a closed the transaction quickly, but he also got a great interest rate because his advisor was able to take extra time to work closely with him to achieve the best terms allowed, and lock his interest rate at the perfect time. Jim knew he could trust his team, and his team also trusted that Jim wasn't thinking about working with other people, so they could all focus on what was important: Helping Jim achieve his goals.