Review Questions from the last meeting

"Because of the fact you said....."

Presentation:

Rates:

“What they understand about mortgage rates and how they fluctuate? Rates have hit a 27-year high. Mr. Kressner, I don't want to make you a mortgage nerd—certainly not.

But I do want you to know that I'm unable to lock in an interest rate at this stage.      

I can't lock your rate in until you go under contract, have an address, and have a closed date. But what's really important for you to understand is that this is what's been going on in the last three months.

This might look like a string of Christmas lights.

But what it actually is is the mortgage bond market, and it shows how rates fluctuate not only every day but also over time.

But what I want you to take away from this is that it moves every single day and, on some days, multiple times a day. This is what's called the candlestick, and on this day, the candlestick was much longer, which means more volatility.

Do you see that, Mr. Customer? Yep. Okay.

So, at this stage, when I've just estimated a mortgage payment for you, my question to you is, would you rather I use an over-estimated rate or an underestimated rate when we're estimating your mortgage payment right now? What do they say? Over estimated. Great.

Because what I would rather do is over prepare you because You see how volatile this market is? So I want you to know that the numbers I've shown you are over estimated so you're over prepared. But I can tell you that most of my competitors, most other lenders, they're going to underestimate it. I don't want to do that to you. I prefer happy surprises. Not unhappy.   That's all basically the amount of detail I go into about rate. I will tell you that when you go under contract, I will show you all of your rate options.

I will show you behind the curtain. I want you to be empowered to know all your rates so I will show those to you here. And then I will always run a break even analysis based on the time frame that I think we're going to do the rate redo program which right now is typically.

“prices permanent, interest rate is temporary.”

Home Prices:

I'm going to ask them do you think next do you think home prices are going to go up or down. MBS High Way Chart I show them this MBS highway chart that shows that we've been in a shortage of inventory since 2017. A lot of people think we've been in a shortage since covid. I'm sorry I say so when interest rates come down do you think that's going to increase demand? Yes or no? They're like yes okay. And when demand increases. This is what do you think is going to happen?

(I'm specifically asking them these questions. I'm not giving them the answer. Why am I not giving them the answer?)

Sometimes I go into this which is just- this was for my mother-in-law to prove to her that we're not in a housing crash.   Create a post close slide This is our post closing customer service team.

The next stop Mr. customer is you are ready to go out and start shopping for our home. How are you feeling about buying a home now?

Mortgage Coach:

MMS Columns

1)    Max Purchase Price

2)    Target Payment

3)    Strategic Option

4)    Rate Redo Program:

(I'm going to always, always, always show them what our future rate redo program looks like because)

“We utilize AI technology. When rates go down, we have a rate-watch customer service team. Even after closing, when these rates come down, my team and I are going to watch the rates for you, and we will reach out to you once we feel like rates have hit rock bottom.

I can assure you that every lender in America will contact you when they're on their way down, but we don't want to redo it when they're on their way down.

Then if necessary:

• Cost of Waiting

• Commission Gap

• Rent vs Own

• Review commission Gap  

Competitive offer:

Say all right we're going to go out and write an offer you only got 3% down okay so your hands are kind of tied because you got most of your competitor buyers out there are going to have more down payment than you and more cash to throw around and look strong so what can we do with you only having 3% down to make this deal work?

For competitive offer we need four major things

• You need to Pre-Approved Buyer

• Pre-Approved also allows for a Quick Close

• Over List Price

• Large Earnest Money Deposit

• Contingencies

• Possible Seller Lease Back

Okay because I can tell you that you're probably in the most competitive price point as well now you did the huge First Step that we've got you fully loan approved. So I think the number one lever is a fast closing like you probably want to write a 13-day closing or 15-day closing. Now the seller might not be ready to move that fast but it shows how ready we are. Number two, you might have to write over the ask price because you're only putting 3% down. Now you got to make sure that the house would appraised because if it doesn't you don't have the money to cure the difference but I'm confident that Todd as your agent will know exactly how aggressive you can be realistically to really give this thing a shot. Number three earnest money some people put $1,000 earnest money on the contract and the earnest money is like a reservation on the house but if you're going to put 3% down I'd probably put all three% as the earnest money because again it shows you I'm being aggressive I'm putting it all out there I'm confident

I'm going to close the people don't get their offers accepted is because they're kind of like lukewarm like you kind of feel like they've got one toe in but the rest they're body out so if you find a house you want to go all in

.

These are kind of the levers that you can pull you know inspections those are really important but maybe you can tighten up the

timeline if if that becomes a Competitive Edge