If you’re trying to help clients buy or sell homes in the current market, you’ve likely run up against some hurdles. It’s been a wild year. Mortgage rates are no longer super low, which can create uncertainty about how to proceed in the market for both buyers and sellers. To help you handle this insecurity, I had a great talk with Loralynne Ball of Keller Mortgage this week about what we should know about the current mortgage landscape.

Her key piece of advice? Know your facts. Show your clients that there is opportunity in the market and how to take advantage of it. If you haven’t had a chance to watch our Pivot: Shift Ahead call, click below and read on to see what Loralynne suggests we do.

Learn Important Mortgage Terminologies

We’ve entered a market where different types of mortgage products can make a difference between helping your client get into their dream house or not. Whether you’re an experienced agent or brand new to the field, it’s important to take the time to understand the different mortgage terms that are now coming up in conversation. You don’t need to know all the nuances of financing, but you do need to understand the common terms. For instance, Loralynne explained the usefulness of knowing how seller concessions are used and what they consist of, how buy-downs can protect buyers from jumping immediately into higher mortgage rates, and the differences in adjustable-rate mortgages (ARMs). Taking the time to understand the range of products available in the current market enables agents to give their clients a broader selection of options to choose from to help them purchase their dream homes.  

See Mortgage Lenders as True Partners

To be able to best serve your clients right now, it’s key to be in partnership with a mortgage expert you know and trust. Choosing the right relationship is important. When you have a skilled mortgage lender in your corner, it ensures that you don’t have to be the be-all and end-all on mortgages. Rather, the knowledge you share with your client can set the stage for an introduction to your mortgage partner. Take the time to understand your client’s full financial picture. In partnership with your mortgage lender, you can then help them make the best decision for the current market and ensure that they get into the loan that suits them best.  

Provide Accurate Perspective to Potential Buyers

Did you know that consumer mortgage applications are rising for the first time since June? In other words, more people are starting to get off of the fence and enter the market. This is just one small piece of perspective to share with current clients that may surprise them. Buyers and sellers are both likely to hear horror stories about the market from the news. But this isn’t always accurate. As agents, our job is to provide clients with informed information about what is going on in the local market so that they understand it and can make educated decisions. As Loralynne shared, its key is to explain what our clients are capable of achieving today rather than focusing on what they could have done in a prior market. 

Share Information About Ways to Lower Their Rate

Although we haven’t needed some of the available mortgage products until recently, utilizing them can be incredibly helpful in getting people to the closing table. Take, for instance, the “lock and shop” option. This enables potential buyers to secure a mortgage rate while they look for a home. If rates go down, their rate can float downward, but being locked in at the current rate removes the stress of rates rising. At the end of the day, we can best serve our clients by showing sellers how to achieve the best bottom line and buyers which type of loan serves them best. Sharing our knowledge provides a win-win for everyone.

Remind Clients About the Value of Homeownership

No matter the market, it’s important to reinforce how the right home purchase is great for our clients’ financial futures. After all, Loralynne reminds us that the interest rate on renting a home is 100 percent. To do so, we must be able to show our clients the benefits of investing in home ownership both now and over time. Then, we need to show them how they can take advantage of the market and the financing options available to them to achieve become homeowners.  

What do you do to make sure your clients are financially prepared to get to the closing table?