Buying in bulk is understandably popular. Most all of us have visited warehouse stores that require membership and offer huge packages of an array of items at low prices. Well actually, you are spending more money in that moment more for say, paper towels, because you’re taking home sixteen rolls at once instead of buying a two- or a four-pack. You can save money if you plan well and have a system for buying your necessities in this manner and as a result, these types of stores have grown in numbers and popularity – causing them to expand their reach beyond food, groceries, house wares and automotive.
Shrewd executives at these retail giants have forged partnerships with all kinds of companies and placed representatives and displays in the highly-traveled aisles of their stores offering everything from window-coverings to carpet to automobiles to vacations. These partners generally create packages and members have a menu of pre-negotiated options to choose from. These partnerships afford the ability to move volume (versus more product to one customer as in the paper towel example) due to the great exposure to potential customers…for example, a car company will offer special terms and pricing on one or two models with specific options and no flexibility to up- or downgrade. Sounds like a great deal if what you’re looking for happens to be exactly what they’re offering. But when it comes to mortgages, bulk-big box-warehouse-high volume-discount and members-only aren’t such a great idea….
Costco recently began offering a mortgage lending program a few years ago, but has recently expanded the program and there will be eleven participating lenders. Members log on to the retailer’s site, fill in several required fields of information and the process and experience is conducted online. At first glance, this sounds like a great deal: The ability to shop banks who have presumably cut advance deals to offer lower costs to Costco members. It’s always hard to argue with “lower costs” for anything, but when it comes to getting a mortgage, “costs” extend far beyond the “price tag” borrowers pay to get the loan in the first place or the amount of one’s monthly payments. I didn’t see any fields on the Costco site asking about a potential borrower’s spending comfort level, lifestyle amenities (from entertainment and clothing budgets to the cost of sports and activities for your kids) or goals over the next five, ten or twenty years. “Costs” of a mortgage can extend into every area of a borrower’s life if you don’t select the right loan for your current needs, future and long-term goals.
You’ve probably heard of people who bought “too much house” and later suffered foreclosure or were forced to do a short sale…those are two tough blows to credit and can set your financial stability and advancement back years.
The ability to get mortgages online and “compare rates and prices” is not new. What is new is the world we live in since the infamous “bursting of the housing bubble” and “mortgage meltdown.” Solid, professional advice and experience is more important than ever with to help navigate the tricky trails as we move into a new era that’s unlike what we’ve experienced in most of our adult lives. The downsides of this include lack of or slow appreciation on homes, falling prices in some areas and uncertainty as to when the market will speed up – and how much. There are upsides though too: Mortgage interest rates are still historically low, people can buy homes for the same – or close to – amount of rent in many areas and my team (along with many outstanding Realtor partners we work with) operate at an extremely high level of experience, commitment and service to help consumers discover and take advantage of the great opportunities available in this changing market.
Technology and the ability to bulk up for bargains are both great. But when it comes to analyzing your current financial situation and discovering the best moves to make considering the many important factors in home buying and refinance situations, I don’t believe there’s an “app” or “bulk price” for that. My team and I are here to help! Contact Carrie Guarrero at 952-808-2810 or start the process online now by completing our online pre-qualification worksheet. It’s a great place to start before we truly dig in and build a customize mortgage plan for you.
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