Michael Fanning talks to Cliff Taylor, who has been in the mortgage industry for 34 years, 27 of those years with Penrith Mortgage, an in-house lender owned by Windermere.
1. Interest rates have been high, but buyers are adapting to the new normal through "hedonic adaptation."
2. Ensuring the quality of the buyer's financing is crucial, as last-minute issues can arise.
3. Penrith Mortgage offers a "second look" process to validate buyers' pre-approvals and ensure they're getting a good deal.
4. Penrith's "certified approval" process involves full underwriting, allowing them to guarantee a closing date.
5. The NAR settlement decouples buyer and seller agent commissions, impacting buyers' out-of-pocket costs.
6. Lenders clarified that buyer agent commissions paid by sellers won't count against interested party contribution (IPC) limits.
7. IPC limits vary based on loan type (conventional, FHA, VA) and down payment amount.
8. VA loans have unique rules, like allowing sellers to pay off buyers' debts.
9. Financing buyer agent commissions may require a higher loan amount and mortgage insurance.
10. Sellers are still contributing toward closing costs and rate buy-downs, though less than before.
11. Rates may decline later in 2024, but waiting could mean competing with more buyers and higher home prices.
12. Building equity through home appreciation can offset higher interest rates.
13. Penrith offers tools to analyze the cost of waiting to buy and IPC scenarios.
14. Strong lender relationships benefit agents by protecting their buyers and providing expertise.
15. Continuous education is crucial as lending rules and processes evolve.
Contact information:
Cliff Taylor
Cell: 818-436-2022
Email: cliff.taylor@penrithloans.com