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How To Stay Calm In the Midst of Chaos

 

I hope everyone has had a great 2019 so far and your lives, families and businesses are all thriving and doing well.  Every year about this time many of us find ourselves in the midst of Chaos that we call the Real Estate & Mortgage Industry.  This craziness usually runs through the Summer and we have a resting period around August. This letter was supposed to go out in April and you’re sitting here reading this in May. That pretty much sums up my current work life.  Recently in my business mastermind group the question was proposed, “What does Success Look Like to you?” Heavy question, right??  Here are my thoughts.

When I answered what Success looks like to me, what came to mind was obviously influenced my current state of mind within my business. My response was “Well today its arguments, long hours with a lot of overtime expenses, high blood pressure and the occasional tear… or three.” Half the group was laughing, and the other half was looking at me like a deer in headlights.

There are many ways that we can measure success.  I had written a few months ago about the success I/We had in raising a lot of money in for the community while I was the chair for Rock The Cause for Kids. I expressed how it affected my business, but we raised a lot of money (just shy of One Million) so it was very easy to say that it was a HUGE Success.  Now we are smack dab in the middle of the buying season.  Rates are low and will remain that way all year (per the Feds) and consumer/buyer confidence is up.  This leads to the Chaos of business we have today.

My team came to me in one of our Daily Team Meetings and said, “Matt, we need you to make a call and get us an extension on Client X.”  My response was layered with frustration and disappointment, but I knew I had to make that call.  BTW – We NEVER close late!  That’s our thing!  Fannie Mae put out a stat in the last year or so that said the 60-70% of Mortgage Loans originated in the US close late, but that’s not us. We do not close loans late EVER. After I hung up the phone with my Realtor Referral Partner sat there and thought about the last time I had to make that call.  Honestly, I still can’t remember when I had to do that. It’s literally been years.  My team and I have closed 100’s of loans over the years together. We will move mountains to ensure we close every loan on time every time and we pride ourselves on that.

So what does Success Look Like to me?  It looks like a Duck!  In the Midst of Chaos (picture duck legs going 100 miles an hour under the water), make sure you show you have it ALL under control (picture floating like a Duck on top of the water). That deal we closed late was a very tough deal and the client and referral partner love us still.  My team, in the midst of Chaos did everything they could do to close a tough loan on time. Outside of this tough deal, our loans close 100% on time.  Not remembering the last time I had to make that call…….That’s what success looks like to me!

I truly believe I have the best team around.  If you’d like to share what success looks to you, I’d love to hear it.  Shoot me a message….

Be Like a Duck!  Wishing you a great 2nd half to 2019!

Matt Askland

Loan Options for those Looking to Downsize

(5 min read)

Over the past decade, Baby Boomers (those born from 1944 to 1964) have been the generation to watch both as consumers and home buyers.  Although a shift is taking place and many industries (including real estate) are beginning to focus on the Millennial generation – their housing needs, preferences and purchasing behavior — the Boomers still represent a significant portion of overall home sellers and buyers in 2019. Why? With their children out of the house, many Boomers are looking to downsize.

While they may be looking to transition into smaller homes, they still expect the same high-end amenities, finishes and offerings that come standard in a larger multifamily residence, and complements their modern, active lifestyle.

In this article, we’re sharing a couple of tips for those Baby Boomers looking to downsize, as well as mortgage options that complement their next forever home.

Reverse Mortgages

Reverse Mortgages hit the scene in 1961 and really gained popularity in 2018. It is a type of loan available to homeowners that are 62 years of age or older and have a high amount of equity built up in their current home. Borrowers are not required to make monthly principal and interest payments to their bank or lender, as they would be required to do with a traditional purchase or refinance mortgage. Instead, their bank or lender pays them in a lump sum(s) or via a line of credit based on their home’s equity.

Why is this a good option for the Modern Boomer? Picture a couple that would love to find a smaller home with less maintenance, etc.  They no longer need to live in the best school district and want a lifestyle that allows them the freedom to travel and be more active. The amount of equity they have in their current home, although high, may not allow them to buy a small house or townhome outright because of their desired area’s higher home values.  A reverse mortgage would allow them the opportunity to purchase the home they want, and still have money left over to travel because they are receiving their equity as additional income vs. rolling it into a traditional purchase.

 

Condos

Many of today’s higher-end condo communities offer a variety of upscale amenities to complement their convenient location and accessibility – making it  a very desirable option for the modern Boomer. However, it has been difficult in the past to acquire a loan on a condo because of factors like community occupancy percentage (how many units are owner occupied versus investment properties) and HOA status – including financial reserves and arrearages. Good news, tools like Freddie Macs Condo Project Advisor now lets the buyer request unit-level exceptions for existing condominium projects early in the loan origination process so condo sales and financing are more streamlined.

There are many finance options available to homebuyers looking to downsize.  If you have questions regarding any of the loan programs mentioned above, be sure to contact a Cardinal Financial expert today at 480-759-1500 and we’ll be happy to assist in finding your client a solution that works best for their lifestyle.