One of the pillars of KCM is that we will approach every appointment with the “heart of a teacher” not the “heart of a salesperson”. This principle has never been more important than it is in this current market. Sellers are confused about whether or not to move-up to the home of their dreams. If they do, they are unsure whether to sell their current house or rent it.
Research shows that buyers are very confused about the mortgage process. One study shows that more than one out of every three people believes that they would need a minimum of a 15% down payment to purchase a home.
The situation has caused Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management to call for all real estate and mortgage professionals to reach out to consumers and help them better understand the possibilities. Ms. Boyle recently stated:
“Letting more consumers know how down payments are determined could bring more qualified borrowers off the sidelines. Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5 or 10 percent…
The housing industry’s challenge is to truth-squad borrower misconceptions about down payments and make sure they know how to hold down the out-of-pocket cost of buying a home.
With mortgage rates still near historic lows, new homeownership opportunities are poised to grow. The challenge is finding those who don’t realize they can afford to finance a home and showing them how they can. ”
She went on to explain what Freddie Mac is doing:
Right now, free borrower seminars, counseling sessions, and education events are being held around the country to get out the word about these opportunities. For example, Freddie Mac is teaming up with organizations in North Carolina to hold a major housing fair for the soldiers and military families at Fort Bragg in Fayetteville.
THE BIG QUESTION
What are we doing to help consumers be better equipped to make the right decision for their families?