September 18, 2020
The housing and mortgage market has seen significant ups and downs in recent years, both from the lender and the borrower’s perspective. But recent data highlights a positive road ahead, even following a global pandemic. The broad mortgage market is expected to experience more stability in future years due to slower growth and decreased mortgage rates. Plus, with the rise in mortgage applications, the mortgage market is set to help consumers get into the home of their dreams or refinance a current mortgage for better terms.
In turn, this has helped the portfolio of professionals in the industry in gaining more clients to guide. And with the market being more complex and wide open than ever before, Real estate appraisal professionals, as well as brokers and agents, will need to have a thorough understanding of the opportunities in front of them.
More Competition, More Open Doors
The surge of mortgage lenders over the last decade has created a highly competitive marketplace. Traditional financial institutions, including credit unions and banks, now have to compete with private lenders and online providers, causing confusion among borrowers. The high level of information available on current mortgage rates, loan terms, and qualification requirements has become more stressful and overwhelming than anything for consumers.
The many different options borrowers have when selecting a lender have raised brokers’ position as resources for getting the best deal. Brokers who can work with various loan providers offer the advantage of streamlining the entire process, cutting down on time and frustration among homebuyers. Many consumers are willing to pay for the additional professional advice of brokers and agents for their guidance.
More Affordable Terms
The mix of increased competition in the industry and the ability to gain better access to lower rates give brokers a better negotiating position. Borrowers who want the best price for their purchase or rate for their refinance recognize that working with a broker is a better solution. As interest rates remain stagnant for now, homebuyers will likely move toward working with a real estate professional to ensure they are getting the most value out of their loan.
More Buying Power
Consumers also recognize the increased buying power they have when working with a real estate broker. Many independent real estate brokers have access to better rates through the wholesale mortgage market than standard retail pricing.
With a lower interest rate comes a lower monthly payment, but many potential homeowners or refinancing customers are not focused on reducing monthly costs. Instead, they are looking for more value, which a lower interest rate offers over time. Working directly with a lender may not allow this to happen, and consumers are moving toward brokers for this very reason.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive liability insurance they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. For more information about our products and services, contact us today at (800) 882-4410.