Potential buyers interested in making the switch from renting to buying a home often hesitate due to worries of more costly monthly payments or having to be ready with a big down payment. But these fears are often grounded in misinformation. And that’s where real estate professionals can provide guidance by partnering with an independent mortgage broker. Together, they can help ease pain points at the outset of the home buying process and help buyers leave renting behind.
For instance, a mortgage broker can help underscore some of these lesser-known financial benefits of homeownership:
Purchasing a home allows buyers to invest in their financial future by building wealth through home equity. This equity can be borrowed against for renovations or other large purchases — and it’s on the rise. According to Black Knight, tappable equity reached an all-time high of $6.3 trillion in the second quarter of 2019. Black Knight also reported that the average homeowner with tappable equity has $140,000 available to borrow against — a huge benefit unavailable to renters.
In addition, homeowners can continue to build and improve their credit by making monthly payments on time. And because those payments are fixed, they can’t be increased yearly the way rent prices can.
But even after your potential buyers get a better grip on why purchasing a home is a great way to invest in their futures, they may still find the process intimidating. When you add in the competitive nature of the housing market due to low inventory, it’s easy to see how they might doubt whether they will ever own a home. An independent mortgage broker can help them get into – and afford – their dream home and make you look like a hero to your buyers.
Mortgage brokers are licensed experts who have access to a variety lenders, hundreds of loan products and wholesale rates. As a result, they can help a homebuyer’s money go further by securing a low down payment and lower monthly payments that can maximize how much house they can afford. And they can help you bust the common “20% down payment” mortgage myth that many prospective homebuyers believe, because different loan products can have lower down payment requirements. For example, if a borrower qualifies, an FHA mortgage loan can require as little as 3.5% down or a VA loan could allow for 0% down.
Partnering with a mortgage broker can also give your buyers an edge in this competitive market. Mortgage brokers are flexible and work when their clients need them not just during bank hours, can offer a range of loan products and can provide fast turnaround times — closing loans in an average of 15 days or less.
Don’t let your prospective buyers get stuck renting indefinitely — partner with an independent mortgage broker to help them buy a home they can take pride in, and to serve as an investment for their future.
Real estate professionals and interested homebuyers can visit FindAMortgageBroker.com to discover an independent mortgage broker in their community.