Let’s take a trip down memory lane, shall we? It’s 2005-2006 and the real estate market is running wild as housing prices are through the roof. Owners are enjoying all of their equity and a lot of buyers are getting in over their heads with their home loans. In early 2008, it all comes crashing down. The bubble bursts.
Do you remember?
I remember the meltdown. I remember when millions and millions of people lost their homes. I remember Option Adjustable-Rate Mortgage Loans, Subprime Loans and Stated Income/Stated Assets Loans. The big banks ran wild on consumers, selling these loans to every investor in the world. Loans were approved without any financial data being verified – you know, like income.
A lot of millennials, many of which were just coming into the workforce at the time, forget we had a Great Recession. Their parents were hit hard and they may have not noticed the immediate aftermath at the time. Or maybe they did, and they now operate more cautiously because of it – that’s a good thing! The bottom line is that we shouldn’t forget what happened nearly a decade ago because history can repeat itself.
Which brings me to today and a question I have been getting a lot lately: Why am I focusing on MORTGAGE EDUCATION? There are two very simple answers:
1. They didn’t teach financial education in school.
2. If another systemic crash happens I want my clients who have mortgage loans to be well positioned to come out of it still in a good spot.
These are pretty self-explanatory, right? If you didn’t get educated in school when it comes to personal finances, particularly on how to obtain a mortgage, then you simply aren’t going to have a full grasp on it. Secondly, I believe a huge reason as to why the 2008 crash happened is because there was a complete lack of mortgage education out there among consumers. They didn’t know what they were getting into and didn’t have anyone telling them what they were getting into.
The big banks (you know the ones you have your checking accounts and car loans tied to) were bailed out, of course, and are still around today. They will gladly work with you on a mortgage, but more likely than not you are going to get subpar service. Not if you go to a local lender. I focus on mortgage education because I strive to be an effective communicator, provide education and explain the “why” behind the loan products and rates. If the consumer is educated, then they can make good decisions about their loan product when buying their dream home. And if the consumer is educated, then I believe they can make the type of decisions that would prevent another market crash like the one we had in 2008.
I am a mortgage educator and I believe my content is ideal for you if you are thinking about buying a new home, investing or refinancing. I debunk myths and provide insight and knowledge so you know what to do when the time presents itself with your own mortgage and real estate goals.
Let’s work together, and let’s make sure the home loan process is done right.