“The American Dream” of owning a home really hasn’t changed. Only the timeline people allow themselves to achieve it. What I discover is the biggest hurdle for many – especially first-time buyers – is getting past the mental block of thinking it’s simply not possible. But as a mortgage broker, I know that’s not the case. In fact, now could be the best time ever to buy.” Those might be surprising statements to some, but the truth is, Rick Piette – owner of Las Vegas-based Premier Mortgage Lending – comes across some version of this misconception every day. When he does, he and his experienced Loan Officers help their clients discover that today’s extraordinary opportunities can make owning a home a reality.
“People place limits on their homebuying ability that’s been based on outdated information,” he explains. “The past few years have given us a lot of negative headlines about the housing crash and The Great Recession because ‘bad news’ always grabs the headlines. Good news doesn’t get nearly as much press coverage. As a result, many don’t realize that the circumstances for buying a home have changed in their favor – immensely.
“What we’ve found is that many buyers have three common roadblocks they think they face, all of which couldn’t be further from the truth.
“Myth #1: It’s almost impossible to obtain a mortgage loan. Not today. Actually, more mortgage loans are being approved today than during any period in recent history. Certainly, after the housing crash, mortgage loans were infamously harder to get. But we’ve moved beyond that crisis and economic circumstances have changed considerably. Every year, more mortgage lenders loosen those previously tightened lending restrictions. Also, enough time has passed for individual credit scores to be on the rise with employment and financial stability to sustain them.
“Myth #2: Loans are too expensive. At Premier Mortgage, we can assure you that’s definitely not the truth. As a Mortgage Broker, our true “No Fee Loans” charge none of the ‘junk fees’ that banks and mortgage bankers do – and that means savings to borrowers of literally thousands of dollars.
“But fees are only half of the equation – the other half is the interest rate – and today’s buyers win on that score, too. According to a November 2016 CNBC story, interest rates have never been this low for this long in the history of our country. Since 2011, the average 30-year loan rate has been below 5%, frequently dropping below 4%. And keep in mind, these are fixed-rate loans – not Adjustable Rate Mortgages. Basically, today’s buyers can get better interest rates to buy a home than their parents – or even their grandparents – ever did.
“Myth #3: Buying a home is a bad investment. As with any industry, real estate will fluctuate over time. But if there’s one thing that is never going to change, it’s that people and families need a place to live. That’s even more important when you think beyond your own situation and take into account the needs of upcoming generations.
“For example, a recent study reveals that as of early 2017, as many as 34 million renters aged 25-44 were now credit-eligible to get a mortgage loan. That’s a huge number. Especially since as of the end of May, the total inventory of existing homes for sale in the U.S. was only 1.96 million.
“One other important detail about mortgage loans – and this is no myth – is that borrowers who take a little extra to shop around for the best deal can save even more of their hard-earned money. Unfortunately, many homebuyers don’t take this step because they’ve relied on someone else’s advice about their loan.
“When homebuyers turn their choice of lender over to the decision of their Realtor® or home builder, they’re handing their financial future over to someone who has no vested interest in the outcome,” Piette explains. “Think about it: Who’s going to be paying that mortgage each month? Certainly not them. Also, unknown to you – they may have financial incentives to steer you to a particular lender, which can put money in their pocket by taking it (in)directly out of yours.”
That’s a regret the Premier Mortgage Lending team wants to help borrowers avoid. “We advise our clients to keep in mind that above all, this is a business transaction. Be smart, take an extra hour of your time to get a Loan Estimate from at least two lenders, compare the interest rates and the loan fees – and the decision comes down to your dollars and cents.
“The interest rate and the fees are the only two things that really matter when it comes to the cost of your loan,” Piette explains. “They allow you to compare the numbers as “apples-to-apples” between lenders to see exactly how much you’ll be paying. Once you know that, you’re equipped to make the best choice for you. And if your Realtor® or builder disagrees with your decision, maybe you should ask them to explain why you should pay more for your mortgage loan than you need to?”
To learn more about the wide range of loan programs available today – from “No Fee” to “1% Down” and more, visit www.PremierMortgageLending.com, or call (702) 485-6600 to schedule an appointment.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, and Boulder City Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.