3 Reasons People Are Afraid to Apply for a Mortgage and Why You Don’t Have to Be

We understand why people put off calling us, no matter how much they want that dream house, no matter how much they’d save by refinancing, or how much they need to consolidate their debt – people are afraid of taking that first step.

Usually what we hear is they’ve had a bad experience, they’ve been turned down by banks, or they’ve been through hours and hours of paperwork and weeks and weeks of waiting only to have to jump through more hoops. Who needs that kind of hassle or headache?

Here are the three things we hope you’ll think about if you’re dreading filling out a contact form or picking up a phone to talk to one of our loan officers.

Your Loan Officer is Your Advocate

If you feel intimidated or judged by your loan officer that’s because they’re doing it wrong, not because you are.  Any loan officer’s job is to help you close your loan. At Vinson, our loan officers understand that their first job isn’t to help you close your loan, their first job is to help you choose a loan, to get the best terms possible for your loan, and to make you feel good about the loan and the whole process of getting one.

To do that we need to understand why people dread that first call to a loan officer. One of our clients wrote this in her recommendation of our services:

“We were skeptical at first because of what we went through with a bank but we kept hearing the commercials and decided to call.”

And one of our readers told us why she gets cold feet when she thinks about buying a house:

“It’s hard to trust someone when a deal is that big. “Regular” people don’t deal with those types of purchases on a regular basis, so it can be really intimidating. Besides, it’s so confusing. All the numbers, the three different credit ratings, it’s intimidating for the “average Joe.””

We get that. Our clients are “regular” people. And a lot of people are skeptical, and confused. Our loan officers know that being your advocate means working through imperfect credit (because perfect credit is almost an oxymoron.) It means explaining your options in easy terms (because you’re not the only really smart person who isn’t an expert in home financing.) It means streamlining the process so you don’t waste time (because time is worth as much or more than dollars.) Mostly it means taking care of you. No matter what.

2. Being Refused for One Loan Isn’t the End of the Road

No one likes rejection.  And when you have your heart set on that dream house, or you need to refinance/consolidate, the fear of being told “no” is the adult version of the boogey man and the monster under the bed rolled into one.

We may not have the power to get everyone financing. But we have resources most banks don’t have.

As one of our clients wrote after his financing came through:

“I had been to two other banks and was refused a loan. I was desperate to find someone who would refinance/combine my two mortgages. Although I thought it was going to be a waste of my time; I made the phone call …”

Not all loan application processes are created equal. How your income and debt are represented can make all the difference. Our loan officers are familiar with adjusting the income statements for people who are self-employed and use their business expenses to reduce their taxable income. So we can often get business owners financed when bank financing has failed them. Our loan officers can also help you find options to repair your credit so that your present ability to meet the obligations of a mortgage is reflected in your credit score.

So don’t despair if you’ve already been told “no.” And don’t put off connecting with a loan officer who can help you turn that “no” into a “yes.”

3. Getting Your Loan Doesn’t Have to Mean Weeks in Limbo

Uncertainty is one of the greatest sources of stress we can face. And the period of waiting to close on a house, or get the equity check to finance a dream, or to see your payments reduced after you restructure a loan is a special kind of purgatory.

And that doesn’t take into account the hassle of jumping through hoops to even get to the waiting part.

That’s one of the reasons we offer in-house underwriting and continual advanced training for our loan officers – because it lets us simplify the process and close your loan fast.

We hear comments like this testimonial often:

“I am very grateful for your attention to my loan and appreciate your expediting the process to complete it so quickly.”

We also have a lot of clients who didn’t believe we were serious about being able to close in only 8 days. But they certainly believe us when we make it happen for them.

So if you’ve been putting off contacting us because you’re afraid of being intimidated, confused, turned down, overwhelmed, or stuck in the “wait zone” for weeks on end, there’s no time like the present to kick those fears to the curb and let us help you get the financing you need and deserve.

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The Good, the Bad, and the Beautiful of Owning vs Renting

If you’re renting, and wondering if it makes sense to buy a home, your head is probably exploding with all the variables to consider.

Sure there are a lot of advantages for first time home buyers. And we’d be happy to talk to you about those. But how do you balance out the tangible, and intangible, pros and cons of buying versus renting?

The Good

Tax Advantages — As most of you know, and your tax accountant has probably already mentioned, your monthly payment for rent has no tax deduction available (unless you have a home office or some similar exception.) But the calculation of your monthly mortgage payment includes interest, which is typically deductible.

Equity Investment — Naturally, when you’re renting you’re basically paying off someone else’s investment. When you leave you take nothing with you except the satisfaction of having had a home for the time you lived there. Which isn’t a bad thing, but it isn’t a great thing either.

No Rent Hikes — Unfortunately, most leases only guarantee your rental rate for a year, maybe 18 months. After that you’re subject to an increase. When you own your home your payment is locked in according to the terms of your mortgage.

The Bad

Shifts in the Market — We know you’re all aware of that. None of us are likely to ever believe in a stable Real Estate market again. We are seeing a recovery in the market, along with a slight rise in interest rates. However, regardless of the market or interest rates, the best thing you can do to overcome that uncertainty is to do your research about the area you’re investing in, do your due diligence on the home you’re considering investing in, and most of all — choose a loan officer who will guide you into the right kind of financing for your situation.

Unexpected Costs — First time home buyers are often unprepared for the additional costs involved in buying and owning a home. You’ll need to factor in closing costs, agent fees, insurance, and property taxes. The New York Times published a handy calculator that helps you balance the expected costs of buying against the costs of renting.

Repairs and Maintenance — It’s so easy, when something goes wrong in a home you’re renting, to make a phone call and say, “Fix it.” If your landlord or management agency is responsive and takes good care of the property that can be worth a lot. When you own your home you’ll want to have a “rainy day” fund for those kinds of surprises. On the other hand, if you intend to be in your home for any length of time, it’s nice to be the decision maker about the quality of repairs or replacements.

The Beautiful

It’s yours — Ultimately that’s what most of our clients want; a place they can call “home” that feels like home to them.

They want a place where they can decide if they want tile or hardwood in the entry way. A place where they can paint the shutters apple green if they decide that’s what they want to do. A place where they can let the kids and the pets in and not worry about what someone else will say if the pets scratch the floor or the kids color on the walls. They want a place where they can plant a seedling and stay to watch it become a tree.

Our people are here to help you make the best decisions about your investment and your mortgage — but no one can help you weigh out what it means to have a home to call your own.

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5 tips for first-time homebuyers

You’ve decided to go for it. Buying a home can be thrilling and nerve-wracking at the same time, especially for a first-time homebuyer. It’s difficult to know exactly what to expect. The learning curve can be steep, but most of the issues can be resolved by doing a little financial homework at the outset.

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Vinson Mortgage is an equal opportunity lender. Vinson Mortgage is a division of Executive Lending Group, LLC.

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