WWW = Who, Where & Why
Dan Ranck, HomeSale Mortgage • February 25, 2022
The World Wide Web, or internet as most of us call it, drives our everyday lives in so many ways. Sadly it's safe to say that life as we know it would be difficult without it.
Those who are aged 50+ have somehow managed to make it through half their life without the internet. This group was still able to research information, find their way to destinations, book travel reservations, shop for needless gadgets and get groceries. And, yes, there was even the luxury of meeting people and dating when your true colors usually showed much more quickly. For those who are under 25, much of their life was developed through the internet.
Real estate and mortgage lending also existed before the internet; but today, like many industries, both would most likely struggle to survive without it.
The technology of the internet provides consumers access to a wealth of information and resources that can often spawn both favorable and unfavorable results.
From the mortgage lending perspective, online lenders can be a dime-a-dozen and generally have one main focal point -- marketing. They market for your attention, often through teaser interest rates or some other catchy gimmick or name. Service is rarely their top priority because they are more about quantity than quality.
Although online lenders may try to capture a consumer with something in their bag of tricks, it can often end up being more costly to the consumer, especially if a deal is delayed or falls apart due to inefficiencies.
Many real estate agents have expressed their discontent working with buyers who have a pre-approval from an online mortgage lender. Although some online lenders could certainly be reputable, listing agents are often hesitant accepting an offer from a buyer with an online lender due to the increased potential risk of fallout.
Some specific factors of an online lender that borrowers may want to consider include the following:
- When conducting any type of business via the internet, there can be an increased risk of fraud, scams and illegal business practices because of not knowing who you are dealing with. Many of us have seen those official looking emails from banks or online retailers asking us to click the link to verify our account or change our password. Some may be legitimate, some are not.
- The "loan officer" could be anywhere in the country and may not be familiar with or an expert in the local area market. In many cases a local expert will have the knowledge to provide a buyer with their best financing options.
- The virtual loan officer may not be available when needed or may be difficult to contact. Most local loan officers provide their direct contact information, usually a cellphone number. They are generally available whenever buyers need them or at least have a local team member to back them up.
- Some online lenders want to capture a credit card for an upfront fee for an application, appraisal, credit check or other expenses. Although they technically shouldn't charge any fees without providing proper disclosures to clients, they often do this to gain commitment from the buyer. Most local lenders will not charge anything up front and will only charge buyer-applicable fees when they find a property to purchase.
- It's very common for online lenders to advertise very low rates to entice you to fill out an application. Once they get a full application, run credit and get the process started, they will tell you that advertised rate is not available to you. Most local lenders will request that you complete a full application and collect necessary documents to verify your information before quoting you an interest rate. This allows the local lender to provide you with a more realistic rate that you qualify for based on your credit history and income, rather than a teaser rate from an online lender to suck you in.
- Online applications can sometimes be difficult to understand, and it may be tough to have your questions answered by calling a 1-800 number. Most local mortgage lenders can meet with you face-to-face if you so choose or have a personal conversation with you over the phone to ensure you know what is being asked and why. And they can immediately address any questions or concerns that you may have.
- The loan process can sometimes offer challenges depending on a variety of factors, including the property appraisal, home inspections that can impact your mortgage and who knows what else. An online lender may require you to call a 1-800 number or call center that has limited business hours and is closed for the weekend or holiday. Most local loan officers will provide you with their personal phone number -- usually their cellphone -- and you can often call, text or email them at virtually anytime day or night and even on the weekends.
- Service with a smile. Being able to work with a mortgage professional who can sit across the table from you builds rapport, trust and confidence in the entire mortgage process. Most importantly, it provides the human element so you know that individual is working in your best interest to get your mortgage financing done, and you can look forward to moving day into your new home.
The internet is indeed a valuable tool that enhances our everyday life in many ways. But when it comes to mortgage lending for the largest purchase of your life, know Who you're talking to, Where they are located and Why they will ensure a smooth financial transaction from contract to close.
Dan Rank
Mortgage Loan Officer NMLS #140989
HomeSale Mortgage, LLC NMLS #1054689
Direct: 717.271.2400 efax: 866-849-4320
dan.ranck@homesalemortgage.com www.danranck.com
Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.
When purchasing a home, buyers often have the option of choosing either a standard or enhanced owner’s title insurance policy. Both policies protect the buyer’s ownership interest in the property, but the enhanced policy provides several valuable protections that go beyond the coverage included in a standard policy. The enhanced policy is available for purchases of one-to-four-family residences and condominiums when the property is being purchased in an individual’s name, rather than in the name of an LLC, corporation, partnership, or other entity. A standard owner’s policy protects against common title problems, including defects, liens or claims against the property, an unmarketable title, and a lack of legal access. The enhanced policy includes those protections while adding coverage for issues that are especially relevant to homeowners, including certain building permit and zoning violations, improper subdivisions, vehicular access problems, and structures that encroach onto the property after the buyer takes ownership. One of the most important added benefits is post-policy forgery protection. A standard policy generally protects against title issues that existed before the buyer purchased the property. The enhanced policy also provides protection if someone later forges the homeowner’s signature or creates a fraudulent deed that clouds the homeowner’s title. With real estate and identity fraud becoming an increasing concern, this protection alone can provide homeowners with valuable peace of mind. The enhanced policy also includes an automatic increase in coverage. The policy amount increases by 10% each year during the first five years of ownership, up to 150% of the original policy amount. This helps the coverage keep pace as the value of the property increases. In Pennsylvania, the enhanced policy is available for a one-time premium that is only 10% higher than the standard owner’s policy premium, with no annual renewal cost. At Abstract Associates, we believe buyers should understand the difference between the two policies before making their decision. For a relatively small additional cost at settlement, the enhanced policy provides broader protection that can continue to benefit the homeowner long after closing.
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Most people think of a reverse mortgage as a way for homeowners to access the equity they've built in their current home. While that's certainly true, many Realtors are surprised to learn that a reverse mortgage can also be used to purchase a new home. What Is a Reverse Mortgage? A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), is an FHA-insured loan available to homeowners age 62 and older. Instead of making monthly mortgage payments, eligible borrowers can use a portion of their home's equity to eliminate an existing mortgage, establish a line of credit, receive monthly payments, or simply improve cash flow. Borrowers remain responsible for paying property taxes, homeowners' insurance, maintaining the home, and continuing to occupy it as their primary residence. What Is a Reverse Mortgage for Purchase? A HECM for Purchase allows qualified buyers age 55 and older to purchase a new primary residence using a substantial down payment and a reverse mortgage—without the obligation of monthly principal and interest payments.* This program can be an excellent solution for: Buyers looking to downsize. Retirees relocating closer to family. Homeowners moving into a 55+ community. Clients seeking a home that better fits their retirement lifestyle. Buyers who want to preserve more of their retirement savings or investment assets. Instead of paying all cash for a home, buyers can finance part of the purchase through a reverse mortgage, allowing them to keep more of their liquid assets available for future needs. Why Realtors Should Know About This Program A Reverse Mortgage for Purchase can help clients: Increase purchasing power. Improve monthly cash flow. Preserve retirement savings. Purchase a home that better meets their long-term needs. Age in place more comfortably. For many older buyers, this financing option can make the difference between settling for a home and purchasing the one that truly fits their retirement goals. If you work with clients who are 55 or older, a Reverse Mortgage for Purchase may be worth exploring before they write an offer. *Borrowers must continue to pay property taxes, homeowners insurance, maintain the property, and occupy the home as their primary residence. The amount available depends on factors including the youngest borrower's age, current interest rates, and the home's value. Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.
Whew! If you're anything like me, you blinked and somehow July is already halfway over. That also means we've officially crossed the halfway mark of the year. How’s business treating you? Maybe your year is right on track; if so - congrats! If you're holding your breath waiting for your transaction numbers to suddenly align with the goals you set in January, it's time to stop waiting and start resetting. It’s never too late! The beauty of this business is that January doesn't have a monopoly on fresh starts. In real estate, momentum can change surprisingly quickly. One listing can become three referrals. One conversation can lead to a transaction. The second half of the year has the potential to look completely different from the first. The key isn't wishing for a better year. It's changing what you do next. One of the most important mindset shifts an agent can make is to treat their business like a business. Business owners don't simply hope for better results. They create a plan, track meaningful metrics, review what's working, and adjust when needed. Your real estate business deserves the same level of intention. When you start thinking like the CEO of your business instead of just the salesperson in it, your daily decisions begin to change, and so do your results. So where to start? Ask yourself: How many meaningful conversations am I having each week? How consistently am I following up with past clients and leads? Am I asking for referrals? Am I visible in my community and online? Am I blocking time every day for lead generation? Many of us focus on results we can't control: closings, commission checks, or contracts signed. Instead, focus on the activities that create those results. Results lag behind consistent action. If you improve the actions, the numbers usually follow. Choose one or two meaningful goals for the next 3 months. Then identify the handful of weekly actions that move those goals forward. For example: Reach out to 5 people a day. Schedule three coffee meetings with your sphere. Host one open house every weekend. Post valuable content three times a week. Write five handwritten notes every Friday. Consistency beats intensity every time. Your calendar tells the truth. Look back at the last two weeks. How much time was spent on activities that directly grow your business? Admin work is necessary, but revenue producing activities deserve protected time on your calendar. While time blocking is considered a “bad” word to many, being in control of your time allows you to control your business. Schedule lead generation before you schedule anything else. Pick an accountability partner and share your weekly action plan with each other. Commit to checking in regularly and holding one another accountable for following through. Celebrate the wins along the way. When you accomplish the actions you set out to complete, reward yourself, even if it’s just an iced coffee with your accountability partner. Above all, don’t let a negative mind set deter you from forward momentum. Start small. Do the work. Finish big. Here’s to a successful 2026! "Success looks a lot like failure up until the moment you break through the finish line." – Dan Waldschmid “Today is always the most productive day of your week." – Mark Hunter
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