I believe that it is vital that we help buyers find a responsible mortgage lender with a mortgage product that fits their wants and needs, prior to looking for a home. No, we are not mortgage experts, however we can make sure they they get off on the right foot. Here's how.

1. First, ask them to put together a realistic budget. Both yearly and monthly. What are the expenses they have today? For utilities, car payments, student loans, credit cards, savings etc? Ask them to put down everything that they spend or are anticipating to spend each month and throughout the coming year.
2. Have them look at how much cash they have readily available for a down payment and for closing costs? How much extra cash might they have for moving expenses, for the expenses that a new home or property may cost (interior painting, new drapes, carpet cleaning, new appliances etc)
3. What are they currently paying for a monthly house payment or rental payment? Is it comfortable? What can they realistically budget for a house payment and still be able to pay their other bills, including the different house costs that they will have for the new property (utility costs etc)
4. OK. Now they are ready to start shopping. Give them a generic mortgage application and ask them to fill it out in preparation for their visits; ask them to make a copy for each lender. Have them visit no less than three companies which offer mortgages in your area. Make sure that if they visit an Internet lender, that they also visit at least 2 “brick and motor” lenders in your area!
5. Have them ask these questions and have them get whatever they are told in writing! a) What types of loans are available? b) Considering their monthly income and monthly debts, what is the anticipated monthly payment that they can afford per the lender’s criteria under the various loan types for which they are qualified? What does your monthly payment include (principle, interest, taxes and mortgage insurance)? c) How long does the entire process take from application through closing? d) Do these loans have an adjustable rate or a fixed rate? If adjustable, how much can they adjust over what period of time? Can the adjustable rate be changed to a fixed rate; if so when and how and what will it cost? Make sure they obtain a “Good Faith Estimate” on each of the loans for which the lender says they are qualified!
6. Have them go back home and look over the information that they have been given. Look at the monthly payments, the cash required for down payments, and closing costs and compare that to the budget they put together earlier.
7. Working with you, make sure that they understand the current market conditions and who is typically paying for which closing costs; as well as the entire process from viewing properties to making an offer to and through closing.

We are the experts in real estate. Buyers are tyring to find their way through this crazy market. Be there to help them and they will be clients for life.

Grrrrrr every time I see or hear a story on the media that trashes mortgage lenders as a whole and completely exonerates the people who got themselves into crazy loans, I want to scream! I grant you some lenders do prey upon unsuspecting home buyers who could not buy a home other than through predatory lending practices; however, by far the majority of homeowners who are feeling squeezed got themselves into home loans that did not realistically meet their family's budget.

So...what should they do now:

• Get on a realistic budget
• Look to refinance to a more conventional fixed rate loan
• Sell the house if you can't afford it.

Now, those folks that are preying on unsuspecting home buyers? String them up by their toes (in a manner of speaking!) Understand; I believe that it is our moral responsibility to assist home buyers by explaining the various of financing options and help them understand when looking at a mortgage and the payment, that they must consider it in light of their realistic monthly budget.

Interest rates are a heck of lot less today, than I went into the business in 1982 -- they were over 16% at that time. Housing prices have skyrocketed for most of the US. Interest rates on home loans are comparatively reasonable and choices for housing must be made with a reasoned discussion of all the facts.

We know that real estate is a long term investment in their family and their family's future. Please help home buyers and sellers to see the reality again.

In the middle of putting the finishing touches on a couple of continuing education courses I will be giving soon...it hit me...no one "teaches" new (or old)  REALTORS® how to responsibly, professionally counsel buyers, sellers, tenants, or landlords about how to achieve their real estate goals, and your role in helping to achieve those goals! Amazing!

I was lucky enough to learn from the very first moment I when to work with my Broker, how and why to ask questions in order to really understand  my customer's or my client's wants and needs, and how they wanted me to help them meet their goals in real estate.

I know from experience how important counselling is to being successful.

Do you agree?

Do you enjoy using tehcnologly? Such as a smart phone or a lap top, transaction management systems or single property websites, to meet the needs of your customers or clients? Have you thought about whether or not a Blog may be right for you, but are unsure how it will get you more business? You might want to consider attending one of the RE Connect Conferences by Inman; there are two a year, one in New York City in the early spring, and the other usually in late July or early August in San Francisco.

I just came back from the San Francisco Conference, which I attended on behalf of the National Association of REALTORS®. This was my first time attending; should not have been as I am one of those crazy people who is close to the "bleeding edge "when it comes to tech stuff. I can assure you now, this will not be the only time I attend this Conference.

For more information on the Conference, go to http://inman.com. There you will be able to find out more about the RE Connect Conferences and maybe you will get excited about going to the one nearest you!

More on what I saw and learned in later posts!

What types of technology (software or hardware are you most curious about, maybe afraid to try or unwilling to spend the money on something just yet? Let me know!