It’s pretty nervy to start a blog by disagreeing with a deceased Scotch poet who wrote a famous line that’s been adapted and used by later famous authors. But I’m going to. Robert Burns might have been accurate and insightful about a lot of situations when he declared, “The best laid plans of mice and men often go awry.” But when it comes to getting a mortgage, buying a home, refinancing or investing in real estate, Mr. Burns couldn’t be more wrong.
A lot of people believe that getting a mortgage and buying a home are messy, difficult processes fraught with uncertainty, difficulty, hurdles, struggles and just about anything else you can think of that you’d rather not experience. Watch the news, talk to friends-family-coworkers and you’ll hear at least one story confirming that belief. The truth is, the job of expert mortgage and real estate professionals is to evaluate your situation, anticipate potential difficulties, prepare you for what to expect, direct you through the process and assist you in meeting the various requirements of getting a mortgage and buying a home to avoid surprises whenever possible, and ease the stress of such a big event in your life.
Seriously, how often do you expose your personal information to the degree required to when you’re getting a mortgage or buying something that costs exponentially more than your annual salary? Different clients have different challenges and needs. First time home buyers most often require far more detailed instruction than move-up buyers or folks who are downsizing. Choose expert professionals to work with who know how to assist you – wherever you fall on the mortgage financing and real estate spectrum.
What do these plans look like for different people at different phases?
Renters or First Time Home Buyers: Plans for renters include matching up when they want to buy their first home with when they will be able to. Debt and credit analysis will help us formulate a timeline. Then we’ll compare the current budget with what will be necessary when that renter has a mortgage and other expenses associated with homeownership. Then we’ll look at the savings situation – what’s there now and what’s necessary to buy a first home.
Homeowners: This group might need to update or redirect a current plan, which could include any number of adjustments to budget, debt structure, savings amounts and other aspects of the overall financial picture. If the goal is to move up or refinance, we’ll compare the current and desired scenario to make an educated decision on the best direction. Then we’ll go over the areas of the financial picture and adjust accordingly to reach the chosen outcome. If the homeowner owes more than the home is worth, an entirely different set of questions and considerations are necessary – but there are options and that’s a situation where one absolutely needs professional guidance and yes – a plan.
Current and potential real estate investors: Like the other groups, an examination of this person’s overall picture and short and long-term goals is necessary. When considering investing in real estate; cash flow potential, strategies like buy-and-hold and other expectations should all be explored and discussed – along with worst-case scenarios like the possibility of extended vacancy and its impact.
There’s something for everyone – but every plan is custom-made.
I might agree with Mr. Burns and even that Murphy guy who’s “Law” always gets referenced when it comes to outdoor parties, surprise marriage proposals at televised sporting events, vacations with extended family, and just about any scenario when you need a kid to be on his best behavior. But when it comes to buying a home, getting a mortgage, refinancing, household finance and investing in real estate, the plan is the key…we just have to remember to make and stick to them.
“The best laid plans of mice and men often go awry?” Not ours. Let’s make one for you now, for later and for long term.
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