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Wednesday, June 29, 2022
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We are in a world of multiple communication choices. The telephone is not used as much as it used to be because video, texting, Instagram, Facebook etc., have become a major form of quick communication. Instant soup also exists, but I’ll take Bubbie’s homemade slow-cooked soup anytime (especially since she’s doing the cooking). I’m not going to go into all the advantages and disadvantages of all the types of communications available to us (which means I probably will but … whatever). My personal favorite is the phone, and I will say FaceTime and WhatsApp video are just as good and most times even better if it can be arranged.

We are in a world of information seekers. There is so much information out there that you can literally spend days, if not weeks, getting every bit and piece of information you want and need to make an informed decision. The one thing that we don’t have the luxury of is recapturing time, so although we’ve heard it before I’m going to say it again—you can’t get your time back even if you’re willing to pay for it. On second thought, even though you can’t get your time back, what you can do is find a way to free up your time, which is almost like getting your time back. Now that I’ve segued into talking about time and communication, you might be asking yourself, “What is his point?” Hang tight, it’s coming.

Time’s limitation and scarcity makes it a commodity, so it behooves us to plan the best way to communicate in the most effective way without wasting our time. Although emails and texting are great for quick short hellos while you are sitting in class (a “no no”) or a meeting, in my opinion they are not effective for full-circle communication. When I speak to someone I want to enjoy the conversation I’m having with that person; I want to hear the voice; I want to see their face if possible; I want to see their gestures; I want to see the expressions of joy and/or sadness on their face along with hearing the tone of their voice so I can empathize, create a dialogue, laugh, suggest and support the person I am communicating with.

In my mortgage business, I find that emails and texting have become a common way of communicating, but mortgages are large transactions. You’re not applying for a credit card, so after one or two emails or a text I’m picking up the phone. Why? I want to hear the excitement in the voice of a first-time home buyer buying their first home. Remove any stress and nervousness they may have, which can only be detected from the sound of their voice. I want to address their concerns at once without 500 texts and emails. I want to be able to go over numbers, strategies and game plans, and have a back-and-forth with someone who is trying to make their financial situation stronger or better and help them decide which debt to consolidate and the best ways to allocate any cash they are drawing from their home equity.

I want to clarify the personal and financial information supplied. Review the history and make sure there is stability in the present situation and no future surprises that can affect the strength of a mortgage commitment. Help them select the best mortgage product for their situation.

They say in real estate it’s location, location, location, and to get to the location you need communication, communication, communication.

How to effectively use and maximize your time:

Substitute quick communication with a thorough, well-thought-out, detailed conversation, so that down the line you make an informed decision and avoid errors that can be made by rushing.

Instead of combing through websites and all the other feeds, use an experienced, trustworthy professional who has the knowledge, experience and industry maturity to guide you and save you time and money.

Some important things I want to communicate to you:

Change is coming, and you will need to prepare to deal with this unfamiliar environment. I am not a prophet, but it just may be that during the next two to six months there will be economic turmoil—consolidation; mergers and acquisitions; business growth depending on the industry; and in some cases business closures. Common in an economic downturn. We had an epic two-year refinance boom that helped all those who were able to take advantage of the opportunity of low rates (usually a six-month cycle, but we benefited for two years).

Be aware: The Fannie Mae and Freddie Mac agencies have tightened up, and there are new loan level price adjustments (LLPAs) which went into effect on February 1. Double check to see if your rate was locked. Make sure you do not let your rate expire, and if you are close to expiration, find out the cost of extension fees and your lender’s policies.

There is good news even if rates are rising. The purchase market and the cash-out refinance market should increase from 2021—great for sellers and those who want to tap equity to reposition liquidity into better performing assets (if the shoe fits) or increase cash flow through debt consolidation. There seems to be more balance and health in the purchase market with many loans closing with rates in the 3s to low 4s. Looking into the future, any loans closing now may have refinance opportunities in a few short years. No guarantees, but you may want to structure your loans with short-term higher rates and low-cost options or investigate adjustable-rate options.

Oh, I forgot: Authoring articles for newspapers is one of my favorite forms of communication as well; this way I can tell you to communicate with me by phone and video. I’m here for you, so call me.


Carl E. Guzman, NMLS# 65291, CPA, is the founder and president of Greenback Capital Mortgage Corp. NMLS# 5668. He is a real estate mortgage banker and business financing expert with over 30 years’ experience. He currently has 207 5-star reviews on Zillow. Carl and his team will help you get the best mortgage financing for your situation and his advice will save you thousands! www.greenbackcapital.com  [email protected]

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