An expert’s overview of common issues in the market

During this time I have been focusing on two ends of the market: First-time homebuyers, and borrowers 55 years and older who are considering a reverse mortgage. In this elevated rate market, these two groups really aren’t rate-driven. You buy a home when you are ready, and you get a reverse mortgage to cover a need you have in retirement.

For first-time homebuyers, I am struck by how many of them are reluctant to sit down and get preapproved. They have been doing their “research” and don’t think that they are ready. Well, until you sit down and go through the preapproval process, you really can’t know what your underwriteable income is. Depending on how you are paid, it varies what you can use to qualify for a home.

The reasons for not getting preapproved are: wanting to travel, not having enough saved for a downpayment, prices are up, may have credit issues, or their rent is inexpensive.

Here is the reality: Until you get yourself into a home of your own, you can tend to get used to spending a lot of your in

» “For first-time homebuyers, I am struck by how many of them are reluctant to sit down and get preapproved. They have been doing their ‘research’ and don’t think that they are ready. Well, until you sit down and go through the preapproval process, you really can’t know what your underwriteable income is. Depending on how you are paid, it varies what you can use to qualify for a home.”

come on other things such as travel, fun, cars, eating out ... all those little things that can distract you from buying the one thing that will give back to you in the future.

So, if any of this resonates with you, then you are ready to get preapproved. Just do it.

Even if you need to save up more money, or ask your parents to cosign with you, or get a better paying job — whatever it is — at least you know, and then you can put yourself in a position to buy sooner than later. Make a purchase plan.

Once you have a property, then you will need to manage your finances around that mortgage, and over time you can start doing trips and buying cars and eating out again. All the while you are building up equity each month and getting whatever home value appreciation is happening in your area. You are now financially set for your future. Buying a home is the cornerstone of your financial future. Don’t delay the process.

And at the other end of the spectrum, for people who own their homes and have equity and are looking at their retirement, you may be able to put in place a reverse mortgage as part of your retirement strategy. Our company has a dedicated reverse mortgage division, and we have many options to choose from.

Whatever category of borrower you are on either end of the spectrum, call me and lets see what’s possible.