Last year was a record for changes in rules and legislation in real estate and lending. One industry veteran surmised that in 2011, there were as many changes as there were working days in the year. That is close to 300! Recent examples inlude VA changing a rule four times in less than 7 weeks ; USDA changing rules repeatedly ,and Fannie and Freddie doing the same.
It is still surprising to me how many industry professionals are misinformed or simply apathetic. I receive emails from mortgage veterans asking questions that a rookie should know the answer to and receive marketing solicitations that violate myriad laws. Last week, I was one of several guest speakers to a room full of realtors. Despite free lunch, coverage of important topics,and no admission fee, only 72% of those that registered actually attended.
I think that this clearly illustrates why it is imperative that you choose your realtor and lender wisely. Apathy from a financial professional should not be tolerated – you are the one making the payments , so your loan officer and realtor need to be current on rules, programs and in tune with your needs. I spoke to a homeowner trying to refinance but frustrated that her current lender and two others offered her the same FHA refinance but with no monthly savings due to the mortgage insurance premium.
I connected her with a 20 year veteran loan officer in our office, John Acton, that did an extensive interview and uncovered that the husband was honorably discharged from the military years ago but never used his VA eligibility for a loan. They went from zero savings with the other lenders to over $1000 a month savings as VA allows for debt consolidation and has no monthly mortgage insurance fee.
Another recent example is a well known realtor that simply relies on the fact that they have been an agent for almost four decades. Impressive but without staying current, his perspective is forty years behind. Without going into too much detail, his advice to borrowers is not only myopic, but in some cases, harmful. By comparison, I know other veteran realtors that have embraced technology ,continuing education ( not just the mandatory requirements,but everything relevant). I can not state this enough: interview and choose your loan officer and realtor thoroughly and wisely ! Realtors and loan officers work on commission. Make sure they are working for you, not the money!
Utility firms can be difficult but they do have some positives . Most offer little known programs to help homeowners save money. For instance, Baltimore Gas & Electric offers an energy audit for $40. If they uncover at least three qualifying items, they will fix for free and waive the $40! Items include replacing old light bulbs with new CFL bulbs; energy flow shower heads and faucet aerators; water heater insulation and more. For details, check out their site:
- http://www.bgesmartenergy.com/residential/quick-home-energy-check.
Met Ed offers a similar service but not quite as generous . Their fee is $50 and installation on any products is capped at that value:
- http://energysavepa-home.com/walkthrough/walk-through-audit
Ask your loan officer and realtor what other helpful tips may be available. The good news is that attrition has removed most of the apathetic individuals. The bad news is that is up to to find, interview and ultimately choose your professional wisely. All things considered, that really is not bad news!
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