Dallas)

November 20, 2007

The best mortgage calculator is talking to a live mortgage broker. In person.

Not someone who’s been a bank loan officer for 3 1/2 weeks–but someone who has closed lots of loans and who understands the business. Someone whose business is built on referrals of past clients. (Think about it: If your loan guy or gal has to work for a fancy bank to get business–there’s a reason. )

Whenever I use a professional (dentist, doctor, CPA, computer professional) I’m always looking for someone who will bring more to the table– and I’m willing to pay for this. I mean, if I knew how to fix my computer or network I’d just do it myself. But the reason I use the professionals I do, and pay higher fees in the process, is because there have been times I tried to fix my own computer and network and spent more time and money than had I called a pro in the first place.

For example, I use a CPA instead of TurboTax because I expect my CPA to bring some level of expertise to the table than just punching numbers in a computer. They actually save me money since they bring more to the table than just being an order taker.

For example, they tell me how to legally maximize my deductions. Or I can ask them, Ms. CPA, Are there any expenses my small business is not taking advantage of that you know about? TurboTax is cheap but when you have to write a huge IRS check–this is when the value of a trusted CPA really comes to surface, right?

Likewise, your mortgage professional needs to bring more to the table than just shooting you a rate on a good faith estimate. They need to show you how to pay the mortgage off–not just put you in debt for 20-30 years. They should show you how this mortgage fits in to your overall financial goals. And if you don’t have a plan–they should offer one and/or introduce you to other financial planners/CPAs who can help you.

For example, I recently helped a single woman buy her home. Very straight-forward situation: Great credit borrower needs to buy a home. But in doing her loan I noticed she had no retirement plan. Nada. Zip.

Not only did she not have a 401K, or an IRA but she didn’t even have a plan. She was simply living pay check to pay check.

Naturally she wanted a low rate (who doesn’t) but when I met with her I suggested she keep–not sell–her smaller home and keep it as a rental. It had some equity and was in a great area, close to an Austin lake. My plan was for her to use it as a rental so someone else can pay her mortgage down while she builds equity each year. Where she saw an old home–I saw an asset that would fuel her retirement.

Sure, she’ll have the occasional tenant problem this is why I told her I’d pull her tenet’s credit just to make sure she only leases her home to someone credit-worthy.

When we closed on her new home–she didn’t just get a good rate. She got a true financial plan.

The next time you are thinking about buying a home, or refinancing your home or investment property and google ”mortgage calculators” consider talking to a professional mortgage broker–in person. They have tons of fancy mortgage calculators. And let them bring more to the table than just a rate.

Hopefully, you’ll call us.

www.mylendingplace.com

Category Posted in Financial planning begins with the right mortgage, Getting out of Debt, Mortgage investment