New Year, New Home, New Mortgage Options


Consumers' podcast graphic with image of a couple celebrating in their new home.

Listen in as host Lynne Jarman-Johnson talks with our Consumers mortgage experts on what 2023 looks like in the housing market.



0:00:06.7 Lynne Jarman-Johnson (LJJ): Welcome in Money, I’m Home, with Lynne Jarman-Johnson. Hey, guess what, it’s Consumers Credit Union, the place that you can find finance to fitness all in a new year packaged up tidy with a bow. And joining us today is Josh Summerfield and David Penley. They are our market gurus for mortgages – nobody better on the planet. We have a hint for you today. It is, what is your most trusted source that you need to have if you are going to put your house on the market or you go out there buying one.

0:00:39.3 LJJ: Josh and David, thanks so much for being with us. I love this topic because it’s not what anybody thinks automatically, but it is truly the number one thing, and that is a partner in selling or buying your home. David, let’s start with you. How important is that financial loan officer our MLOs, connecting you to that home and your lending experience?

0:01:00.4 David Pendley (DP): Yeah, I think it’s vitally important. I think it’s the starting point and while our titles are mortgage loan officers, I’ve often identified our team as mortgage planners. As you look at your comprehensive financial plan, we’re helping structure the debt side of that comprehensive financial plan. Nobody here wants to put somebody in a mortgage that is going to jeopardize their future. That house all of a sudden loses its shine really quick when you can’t pay for it. It’s about developing a really great plan for each individual number.

0:01:33.7 LJJ: That is amazing, and Josh, how does that happen? Most people, when I was in the home buying market, it was… I’d find a realtor that I really trusted, and it went from there, but there’s truly something to be said for actually knowing your financial partner is connected really well to your realtor, and knowing the answers to questions that you have are coming from a trusted source.

0:02:00.3 Josh Summerfield (JS): Yeah, like David mentioned, it’s extremely important to have that connection between your real estate agent and your loan officer. They got to have an open line of communication. We get borrowers coming to us through the realtor referrals, we get them coming through our members that just come to us naturally, but ultimately, when a homebuyer is getting ready to select a loan officer, they need to find the person that they feel comfortable asking questions to. Somebody that is going to tell them the truth, whether they want to hear it or not, obviously in a polite manner and everything, but somebody that has their best interest in mind is going to ask the tough questions about, hey, is this house necessarily the best fit for you based on your financial picture? Are you thinking about the utilities, the taxes and so many other things that people don’t necessarily think about as they’re falling in love with the pictures they see online, right? It’s easy to do that and forget about the behind-the-scenes stuff. Well, that’s where your loan officer has to pick up the pieces and really put it together for you.

0:03:01.4 LJJ: That is amazing. Landscaping is something that I always kind of giggle at, is that you really do need to keep your lawn mowed once you have a house, and that’s time. Time is money. Right, David?

0:03:14.4 DP: Yeah, when you throw a 10-acre parcel in there or something that’s all grass, you got to think that through a little bit.

0:03:21.8 LJJ: Man, those lawnmowers are expensive right now. Hey, David, when you’re looking at that mortgage planner, I love that term, being a mortgage planner, do people, when they’re looking at their house, and Josh has talked about the financial aspect of truly what’s all in. Where in your life have you heard of or seen like an epiphany where a family literally was… Their life was changed because someone really did talk to them openly, honestly, and got them on a path to financial success versus financial burden.

0:03:55.3 DP: Yeah, no, it’s a good question. And with what we do, after you meet with hundreds and hundreds of people, for me, as old as I am, I’ve met thousands of people, you see patterns, and you see people who come in on Monday morning, and they fell in love with the only house on the face of this Earth that will make them happy, and it’s 50,000 too much or 75,000, and it’s okay. They’re going to get a second job and then a house can grab you emotionally more than any other material possession, and I think meeting with the loan officer in the upfront and setting up a disciplined plan on how you’re going to search for a house that’s within your budget on that day’s rates on the taxes on that particular house, it’s super important. We always tell our buyers, “As you’re looking on Saturday night at 8 o’clock, if you fell in love with your dream house, call me immediately and let’s work the numbers on that day’s rate on that house’s taxes, and let’s make sure before you get the momentum where it’s actually bigger than you are.” So, it’s really super important to do that because it can grab you emotionally.

0:05:00.7 LJJ: And David, you just mentioned something and Josh, I’m throwing this to you because I think this is brilliant. There’s two things that you just focused on, and one is a preapproval. How important is it to have a preapproval, and the second, how important is it that someone is ready to talk to you when you’re ready because it’s the point of saying, oh my gosh, it might be a Saturday or Sunday, and that’s the way Consumers is? Right, Josh?

0:05:23.8 JS: No, absolutely. Our loan officers, a lot of them will say that they work round the clock and they’re ready to take your call or text or email when you’re ready to ask the questions. It is important to know that as you’re selecting the loan officer as well, that they’re going to be there when you need them. As far as getting a preapproval, I would say it’s extremely important in working with your loan officer to find that right price point. One of the biggest mistakes I see people make is coming in the door and asking, “What’s the most I can get preapproved for?” And that is a red flag for us, right? Meaning they’re going to put themselves in a bad financial position. So, we try to backtrack and go, “Okay, what’s a comfortable payment for you? When you go to the mailbox every month to get your mortgage statement, what’s the number that’s not going to freak you out?” That’s where we need to start and try to work into a little bit, and so that’s a big part of our preapproval processes, is just making sure you’re in the right spot.

0:06:16.7 LJJ: You know what, everybody wants to sleep well at night, right? So, our goal here is to help everybody sleep well. Well, thank you guys so much. What a great conversation. It is the New Year, and it is time for you to get your house ready. If you’re thinking about that spring part of putting it on the market, it’s a little bit of a different scenario than it was a year ago. David, real quickly, can you tell us what are the top three things that someone should be thinking about as they are looking at putting their house on the market and having it ready for a really solid sale?

0:06:49.2 DP: Yeah, a couple of quick things. Landscaping is a… Especially the front yard, is a very inexpensive way to spruce up that first impression when people pull up. It’s absolutely huge. The second thing is make sure your realtor, whoever you choose if you use a realtor, they take great photos because most houses are bought online before they actually view the house. They will not look at a house that doesn’t have great photos, so that’s it. And then the second thing is we’ve for the last couple of years, what a great time to sell a junky house? Now you can’t do that. Make sure your house is fixed and working and everything’s functional and so forth, because it’s going to show up on a home inspection and people are going to be pickier than ever.

0:07:30.0 LJJ: Alright. Well, Josh and David, thank you so much. Happy New Year. We’re looking forward to a lot more conversations as we head into the year and really do appreciate your expertise. It’s invaluable to our members and to our community.

0:07:44.5 JS: Always glad to be here. Thanks, Lynne.

0:07:47.1 DP: Thanks, Lynne.

0:07:47.5 LJJ: Hey, thank you for listening. We hope you had a great time as much as we have today. If you’d like, just send the topic our way and also don’t forget, you know what, if you really want to be on the show, we’d love you on the show. So, send us your name and information. Thank you, Jake Esselink, for your production skills, and I hope everybody has a, a happy new year and b, a very happy home. I’m Lynne Jarman-Jason with Consumers Credit Union. Money, I’m Home!


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