“I’m a strong believer, give them as many options as available,” Brennan said. “If the payment is a little bit higher, there are options for buy-down. That will save you substantially. But if it’s something that’s going to be short-term, where you think it’s only going to be two or three years, it most likely would not make sense to buy down that rate, because you’re not going to recoup the money you paid upfront.”
Brokers can be important voices at the beginning of the loan process and in the days and weeks after the loan closes.
“Our job as a trusted advisor is not to be with them for the 30 days during the transaction, but to be with them for the next 30 years,” he said. “As we go through and look at options, whether it’s debt consolidation, or opportunities to go for an FHA loan. The most important thing is to meet the client where they are. Find out their needs and what they’re comfortable with on the payment side, and then back into it.”
“Know Before You Go”
Increases in home prices have made the market even more challenging for first-time homebuyers. This has forced some buyers to look at more affordable markets instead of their desired location.
“There’s been challenges when it comes to affordability for first-time homebuyers,” Brennan said. “People want to live in certain areas. Sometimes, that is a little challenging just based on how much the values have gone up. Young, first-time homebuyers going into certain markets might have to explore other areas around some of the big cities.”