Welcome to the May episode of Learn with a Lender with Joel Schaub of Guaranteed Rate!



In this episode Joel discusses what’s going on in the world of lending rates and what are the opportunities that agents should educate their clients on at the moment. Joel also talks about the importance of understanding the numbers and how to educate renters for their opportunities as property owners. Joel also explains the recent changes in the market that are affecting both people with lower credit score and those with perfect credit score. Last, Joel reminds everyone how to sign up for his weekly newsletter.



If you’d prefer to watch this interview, click here to view on YouTube!



Joel can be reached at [email protected] and 773.654.2049.



This episode is brought to you by Real Geeks.











Transcript



D.J. Paris 0:00What can you do about high interest rates for your buyers and how it affects your sellers? Well, you probably think not much, but today we're going to show you what you can do to keep your business running in a high interest rate environment. Stay tuned. This episode of Keeping it real is brought to you by real geeks, how many homes are you going to sell this year? Do you have the right tools? Is your website turning soft leads and interested buyers? Are you spending money on leads that aren't converting? Well real geeks is your solution. Find out why agents across the country choose real geeks as their technology partner. Real geeks was created by an agent for agents. They pride themselves on delivering a sales and marketing solution so that you can easily generate more business. Their agent websites are fast and built for lead conversion with a smooth search experience for your visitors. Real geeks also includes an easy to use agent CRM. So once a lead signs up on your website, you can track their interest and have great follow up conversations. Real geeks is loaded with a ton of marketing tools to nurture your leads and increase brand awareness visit real geeks.com forward slash keeping it real pod and find out why Realtors come to real geeks to generate more business again, visit real geeks.com forward slash keeping it real pod and now on to our show.



Right Welcome to another episode of Keeping it real the largest podcast made by real estate agents and for real estate agents. My name is DJ Parris, I'm your guide and host through the show. And today, once again is our monthly series called Learn with a lender with Joel shop from guaranteed rate. Let's tell you more about Joel Joel is the vice president of lending at guaranteed rate. He's been doing loans at a high level since 1220 years now to that actually 21 years. He's been doing this since 2003. And he got to that level of being one of the top lenders in the nation because of what he does specifically for agents, which is he gives back part of his commission to your client on every transaction. Last year alone, Joel gave back over $300,000 in closing costs to buyers who worked with him. And that puts Joel's volume in the top 1/10 of 1% of all lenders nationwide, which is a really impressive number because there are over 400,000 loan officers in in the country and Joel is currently ranked 137 out of 400,000. So he is really at the very top of the mountain last year alone he closed 319 transactions is highest ever. And that was for 126 million in loans, which is insane. This year, he's already closed. And remember, this is not an easy year for loan officers. He closed 106 transactions already for just shy of 40 or sorry, just over $45 million insane. Now if you're ever looking for a to work with maybe a different loan officer, maybe you don't have a great relationship with people that you've worked with in the past or you're just want to expand your business and want to partner with one of the best we cannot more highly recommend Joel he's the very best we've ever worked with. Guess what he did my loan. That's how much I like him. And it's not because he's my friend. It's because he's literally the best. Joel can be reached at and I want everybody to shoot him an email [email protected] J [email protected]. Asked to be put on his newsletter but also asked to have a conversation with someone on his team where you guys can talk about how he can help you grow your business, shoot him a text message also or call him at 773-654-2049 Let's say hello to the biggest Cubs fan. I know Joel welcome again to the show.



Joel Schaub 3:57Hey TJ thanks so much for having me on. I love it that you referenced the Cubs even though they're not having a good year you got to stay positive. And that's kind of the message that I send over to real estate agents every time I meet them doesn't matter what the market is you got to stay positive and that's what we're doing with the Cubs this



D.J. Paris 4:12year. Well as as a Cubs fan that's pretty much always how it is it's we don't win but we don't care we just enjoy



Joel Schaub 4:20there's an old saying I think right win or lose will still booze you can go out to Wrigley and have a good time. That definitely holds true this year when they're not winning two games.



D.J. Paris 4:29Awesome. Well, what Okay, we got I think we have to talk about rates because rates are in the ether. Everyone's you know, either frustrated about rates hoping that rates move a certain direction or just wanting to know from somebody like yourself who really has an inside track to what's going on in the lending world. What do Realtors need to know about what's going on today right now in with rates.



Joel Schaub 4:53Well, listen, we're now in this new normal right where when a client hears that rates are at six or six and a half percent. They're actually not scared off by this, right? They may not like it. And I don't like it either. But if you're an agent, you're not telling borrower something that they don't know already, right? It used to be DJ, even just a few months ago, this was news. This was something that borrowers were not expecting. And now we're finally getting to the point where everybody's expecting it. Right? We're actually off from the highs, there were rates that were in October, November for a 30. year fixed, that surpassed 7%. And now on today, you know, they're averaging in the low sixes. It's something that we can spread positivity about that they're not as high as they once were.



D.J. Paris 5:44Yeah, my, when I first got when I first bought a condo, I think it was 2005. And I was younger, younger man with, I think I still had pretty, pretty good credit, but I certainly didn't have the income that I do today. And I Yeah, well, that's true. I had perfect credit, almost, but very little income. But I remember I got five points, 5%, maybe, around that number, somewhere around there. And I was, that was okay. For me, it seemed reasonable. So I think people need to remember, historically that we're, you know, if we're just comparing against the 3% days of a few years ago, you're always going to lose, because those were historic lows. But people are still concerned thinking that rates are higher than they'd like to be. Realtors are obviously struggling with this with their buyers. So what do you what sort of opportunities are there right now that agents should be educating their clients about and how to take action?



Joel Schaub 6:40Well, right now, since rates are higher, we just have less buyers, right? We just simply do, they're, they've been priced out. So there's a lot of people that only could buy DJ, when rates were at two and a half or three and a half percent. And now that they are up over 6%, there is a contingency of buyers that just are not in the market. And so that means if we are in the market, we have less bids on that property, even though at the moment I say that I know that agents out there, say and not my market, we're seeing multiple offers on hot properties. And I understand that for sure. But if we're a buyer in this market, and the strategy would be I'm going to wait until rates come down to buy it's not a good strategy, right? There's going to be even more of an influx of buyers, if all of a sudden rates drop, and we don't anticipate them just overnight. Dropping a full point, I think it's going to be a gradual thing. But I do think that it's going to start this year, even by the third and fourth quarter of this year. I do anticipate rates being lower than they are now.



D.J. Paris 7:42Yeah, I mean, we also have to remember to back in the 3% days that obviously you were working probably harder than ever because nobody was priced out of the market, except everyone was kind of priced out of the market, because prices went up so much higher. It was like the rate was amazing. We're like, whoo, I'd like to only pay 2.75% Except I can't get anything because everyone's buying things $100,000 over asking without even going to see the property. So let's let's all also everyone viewers, listeners, remember that those weren't just the easy days, those were good days, but they were very difficult to actually get if you had listings, you were doing great. If you had buyers, it was tough. So now as Joel mentioned, yeah, rates are higher. But boy, I, you know, I'd rather have less competition and a slightly higher rate or you know, even even a much higher rate, knowing that I could at least get the property that I want, then refinance a couple of years later and bring that rate down.



Joel Schaub 8:38What we're seeing right now is sellers just don't want to trade up and do that big of a rate increase. If I'm selling my house today that has a 3% rate DJ and I have to go with them take a 6.5% rate, I'm just not going to sell the home. And I think there's some evidence here that if rates do dip into the fives, which we probably will see here in q3 and definitely q4 of this year and into next year, we will start to see sellers say Okay, now that rates have come down, I'm okay trading up.

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