I want to take a minute to focus on another aspect of the FREEandCLEAR Mortgage Survey that I found troubling. About 20 percent of borrowers said it was not possible to buy a home with a down payment of less than 5 percent. As you know, this is simply untrue. The assumptions and misinformation out there can be staggering. We, as an industry and as a trusted company within that industry, need to do our part to combat these fallacies.
We know most people who walk through our doors will have an interest in 30-year, fixed-rate loans or refinancings. And that’s fine. But your clients should be well aware of other options, such as FHA, VA, USDA loans, and other conventional programs and products that typically require a lower down payment or no money down. Naturally, not every product will be applicable to every borrower, but you cannot discount them without even presenting the options when appropriate. Imagine what that education could do for your business and those hopeful homeowners if you were able to inform even a small amount of that misguided 20 percent within your community. The difference would be palpable, not to mention the fringe benefits from word of mouth!
Our world is running rampant with “fake news” right now. While this form of misinformation may not be disseminated by the media, it is somehow being picked up as fact by a scarily large amount of the general homebuying population. Do your part to combat this problem by filling your clients with the facts they need to make confident decisions for their future.