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Listen "Use By-Downs To Help Buyers With Their Home Lending Rate! • Learning With A Lender • Joel Schaub"
Episode Synopsis
Welcome to the June episode of Learn with a Lender with Joel Schaub of Guaranteed Rate!
In this episode Joel discusses the current situation in the real estate business. Joel and DJ discuss the strength of the correct pre-approval letter. Joel explains the buy-outs and 2-1 rate by-down and discusses how do sellers explore by-downs. Last Joel talks about interest-deductions for first-time home buyers and how to explain it in real simple terms and mortgage insurance rates.
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 0:00There's a secret strategy known by top Realtors on how to get their buyers lending rates down. Right now we're going to learn about how to do that today. 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. There 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.
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. Now, Joel is the vice president of lending at guaranteed rate, and he's been doing loans at a high level since 2003. He got to that level because of what he does specifically for agents, which is that he gives back part of his commission to the buyer on every transaction. Now last year alone, Joel gave back over $300,000 in closing costs to buyers who worked with him. And that puts Joe's volume in the top 1/10 of 1% of all loan officers nationwide. In fact, out of 400,000 lenders in the country. Joel is currently ranked number one 137 last year. Oh, you know, I deleted Joel's numbers from last year by mistake, but he did an incredible amount of production last year. But this year, he closed has closed already 137 transactions for just shy of just under $60 million in loans. If you're ever looking for a loan officer, we could not more highly recommend Joel he's the very best we've ever worked with. Joel can be reached at his email, which is [email protected] J [email protected]. Or you can shoot him a text message or call him at 773-654-2049. Let's say hello to the biggest Cubs fan. I know. Hey, Joel.
Joel Schaub 3:04TJ, thanks so much for having me on again. And now we feel like summer is in full effect. And I'm really excited to be sharing what's going on behind the scenes and mortgages so that the listeners can either close one more transaction on the buy side or maybe get one more listing. And it's always my favorite time of the month when we connect together.
D.J. Paris 3:24Me too. And you know, this is a time when it seems like there's a lot of activity in the market. And the two major grumbles or complaints that I hear is low inventory, and rates not being where we would like them to be. So I'm curious to sort of get your take on what's going on today in the market and how agents can take advantage of any opportunities that you see.
Joel Schaub 3:49And the third grumble, right. It's just my stomach before I have breakfast, right? It's gotta be the third one, its rates on right lack of inventory. And then maybe the days where I skipped breakfast, but no, DJ, you're exactly right. I feel that it's strange that these rates being as high as they are, you know, just below 7% Right now, haven't scared off buyers in the sense that we're seeing two out of three homes go into multiple offers, you know what I mean? It's amazing. And so when you have these properties that are actually hot, and they come on the market, there's multiple offers on these. And it seems like it's the dichotomy, right? There's properties that sit and they're listed incorrectly or they're the ones that are priced correctly. And buyers are still saying I'm going to pay you 20 grand more than the listing price 30 grand, and with rates being this high, it's not the way it should be. But there's a major lack of inventory in all the major metropolitan markets.
D.J. Paris 4:49Well, and this is an opportunity for realtors to understand and communicate to their buyers in particular, that you know, sitting on the sideline is is fine if your will Looking to lose a property, but with with restricted inventory, and the fact that there is multiple offer situations going on at, you know, sub, you know, high the high sixes in the lending rates? You know, I think realtors have to readjust their own expectations and make sure that when they communicate to clients that they're saying, Yeah, I know that seems like a high number for an interest rate. But you know, going back to something you always say about dating the rate marrying the home and understanding that, you know, yeah, we may pay a slight premium, maybe we're paying over asking, or maybe we're paying a higher interest rate because of where rates are currently. But we're going to be able to, you know, adjust that interest rate down, most likely when when rates do in fact, come back. But this is, I don't think this is a time to sit on the sidelines, because there's just not that much inventory out there.
Joel Schaub 5:50And the ones that are jumping in, and what we really need to do is design offers that are going to win, right? How many agents out there listening, are submitting offers, and we're losing, right? We don't want to lose if we're gonna go try to help our clients, we want to win offers, and we don't want to be the one that is always coming in with the highest offer. All right. So I wanted to just share two strategies that we can do right now. And when we hear that dreaded, I'm calling for the highest and best, right, it seems like agents are doing that. The day they put it on the market. They're saying, Okay, here's an offer. And the agent comes back and says we're looking for highest and best. So it's the second word, it's the best, right? So I don't always want my clients winning by being the highest, I want to go in and say that we're better than the other offers. And one of the ways that we do that is the strength of the pre approval letter. Right? Having the financing look as strong as possible is going to help you win here, are we going to be able to compete with a cash offer? Probably not. Right. But I just had one last week where we were not the top offer. We were really strong on the financing. And the most cash, the highest cash offer was about 10 grand less than ours. So we won even though we weren't the highest financed offer, we were better than the cash offer. And it's because we showed a strong downpayment, the property address on the pre approval letter. In other words, we were buttoned up, when all the other offers weren't as strong, we looked like we were the easiest option for the seller, that will get to the bottom line. And so
D.J. Paris 7:25not all three of not all pre approval letters are created equal. Right? Like, it's important to to, you know, read, if you're working with a lender, and you know, they're going to be putting out pre approval letters, you do want the actual address of the property on the letter, that's a significant thing. Because of course, that that that communicates a message to the seller,
Joel Schaub 7:52the seller actually called because they do good sellers do if you're listening, you know, you call and the other bank had a stale letter from over four weeks ago, they had an old rate, they weren't convinced the buyers and even been in contact with the bank recently, where our letterhead, today's date, it had the property address, it was all specific. And it encouraged the listing agent to actually reach out to me if they had any questions to make sure this deal went through. So working with a lender that will do that. And you guys have mortgage partners right now that are just dying to help you. So make sure that when you're submitting your offer, you're calling back that mortgage professional that you're working with. And having them put today's date on the letter, having them put the property address so that you can put together a nice package with a bow on top that looks better than every other offer. And I'm telling you that is better than coming in 50 grand over with a stale letter that doesn't really match up.
D.J. Paris 8:50Yeah, because if it's a stale letter, and you know, it doesn't look to be specific to the property or current, then then you have to investigate. Now the seller has to do homework and now they have to reach back out go, is this still is this current is this the right rate is still valid. And you never want a seller, especially in a multiple offer situation to have to do extra work because you didn't you and your lender didn't, you know, have an updated sheet?
Joel Schaub 9:19Absolutely.
In this episode Joel discusses the current situation in the real estate business. Joel and DJ discuss the strength of the correct pre-approval letter. Joel explains the buy-outs and 2-1 rate by-down and discusses how do sellers explore by-downs. Last Joel talks about interest-deductions for first-time home buyers and how to explain it in real simple terms and mortgage insurance rates.
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 0:00There's a secret strategy known by top Realtors on how to get their buyers lending rates down. Right now we're going to learn about how to do that today. 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. There 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.
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. Now, Joel is the vice president of lending at guaranteed rate, and he's been doing loans at a high level since 2003. He got to that level because of what he does specifically for agents, which is that he gives back part of his commission to the buyer on every transaction. Now last year alone, Joel gave back over $300,000 in closing costs to buyers who worked with him. And that puts Joe's volume in the top 1/10 of 1% of all loan officers nationwide. In fact, out of 400,000 lenders in the country. Joel is currently ranked number one 137 last year. Oh, you know, I deleted Joel's numbers from last year by mistake, but he did an incredible amount of production last year. But this year, he closed has closed already 137 transactions for just shy of just under $60 million in loans. If you're ever looking for a loan officer, we could not more highly recommend Joel he's the very best we've ever worked with. Joel can be reached at his email, which is [email protected] J [email protected]. Or you can shoot him a text message or call him at 773-654-2049. Let's say hello to the biggest Cubs fan. I know. Hey, Joel.
Joel Schaub 3:04TJ, thanks so much for having me on again. And now we feel like summer is in full effect. And I'm really excited to be sharing what's going on behind the scenes and mortgages so that the listeners can either close one more transaction on the buy side or maybe get one more listing. And it's always my favorite time of the month when we connect together.
D.J. Paris 3:24Me too. And you know, this is a time when it seems like there's a lot of activity in the market. And the two major grumbles or complaints that I hear is low inventory, and rates not being where we would like them to be. So I'm curious to sort of get your take on what's going on today in the market and how agents can take advantage of any opportunities that you see.
Joel Schaub 3:49And the third grumble, right. It's just my stomach before I have breakfast, right? It's gotta be the third one, its rates on right lack of inventory. And then maybe the days where I skipped breakfast, but no, DJ, you're exactly right. I feel that it's strange that these rates being as high as they are, you know, just below 7% Right now, haven't scared off buyers in the sense that we're seeing two out of three homes go into multiple offers, you know what I mean? It's amazing. And so when you have these properties that are actually hot, and they come on the market, there's multiple offers on these. And it seems like it's the dichotomy, right? There's properties that sit and they're listed incorrectly or they're the ones that are priced correctly. And buyers are still saying I'm going to pay you 20 grand more than the listing price 30 grand, and with rates being this high, it's not the way it should be. But there's a major lack of inventory in all the major metropolitan markets.
D.J. Paris 4:49Well, and this is an opportunity for realtors to understand and communicate to their buyers in particular, that you know, sitting on the sideline is is fine if your will Looking to lose a property, but with with restricted inventory, and the fact that there is multiple offer situations going on at, you know, sub, you know, high the high sixes in the lending rates? You know, I think realtors have to readjust their own expectations and make sure that when they communicate to clients that they're saying, Yeah, I know that seems like a high number for an interest rate. But you know, going back to something you always say about dating the rate marrying the home and understanding that, you know, yeah, we may pay a slight premium, maybe we're paying over asking, or maybe we're paying a higher interest rate because of where rates are currently. But we're going to be able to, you know, adjust that interest rate down, most likely when when rates do in fact, come back. But this is, I don't think this is a time to sit on the sidelines, because there's just not that much inventory out there.
Joel Schaub 5:50And the ones that are jumping in, and what we really need to do is design offers that are going to win, right? How many agents out there listening, are submitting offers, and we're losing, right? We don't want to lose if we're gonna go try to help our clients, we want to win offers, and we don't want to be the one that is always coming in with the highest offer. All right. So I wanted to just share two strategies that we can do right now. And when we hear that dreaded, I'm calling for the highest and best, right, it seems like agents are doing that. The day they put it on the market. They're saying, Okay, here's an offer. And the agent comes back and says we're looking for highest and best. So it's the second word, it's the best, right? So I don't always want my clients winning by being the highest, I want to go in and say that we're better than the other offers. And one of the ways that we do that is the strength of the pre approval letter. Right? Having the financing look as strong as possible is going to help you win here, are we going to be able to compete with a cash offer? Probably not. Right. But I just had one last week where we were not the top offer. We were really strong on the financing. And the most cash, the highest cash offer was about 10 grand less than ours. So we won even though we weren't the highest financed offer, we were better than the cash offer. And it's because we showed a strong downpayment, the property address on the pre approval letter. In other words, we were buttoned up, when all the other offers weren't as strong, we looked like we were the easiest option for the seller, that will get to the bottom line. And so
D.J. Paris 7:25not all three of not all pre approval letters are created equal. Right? Like, it's important to to, you know, read, if you're working with a lender, and you know, they're going to be putting out pre approval letters, you do want the actual address of the property on the letter, that's a significant thing. Because of course, that that that communicates a message to the seller,
Joel Schaub 7:52the seller actually called because they do good sellers do if you're listening, you know, you call and the other bank had a stale letter from over four weeks ago, they had an old rate, they weren't convinced the buyers and even been in contact with the bank recently, where our letterhead, today's date, it had the property address, it was all specific. And it encouraged the listing agent to actually reach out to me if they had any questions to make sure this deal went through. So working with a lender that will do that. And you guys have mortgage partners right now that are just dying to help you. So make sure that when you're submitting your offer, you're calling back that mortgage professional that you're working with. And having them put today's date on the letter, having them put the property address so that you can put together a nice package with a bow on top that looks better than every other offer. And I'm telling you that is better than coming in 50 grand over with a stale letter that doesn't really match up.
D.J. Paris 8:50Yeah, because if it's a stale letter, and you know, it doesn't look to be specific to the property or current, then then you have to investigate. Now the seller has to do homework and now they have to reach back out go, is this still is this current is this the right rate is still valid. And you never want a seller, especially in a multiple offer situation to have to do extra work because you didn't you and your lender didn't, you know, have an updated sheet?
Joel Schaub 9:19Absolutely.
In God we trust