Spring is the start of the home-buying season in the real estate world. For many people who dream of home ownership or are looking to downsize or remodel, the mortgage loan process is, at best, annoying and, at worst, terrifying.
The typical industry mentality for a home buyer is they need a 20-percent down payment and a credit score in the 700s or higher to qualify for a mortgage. However, the team at Heartland Financial and Mortgage thinks differently. With the motto of "Putting People First," they are willing to help homebuyers in all circumstances become homeowners.
"Well, it really boils down to this: I think our industry can do better," says Heartland President Dan Farmer. "Mortgage lenders, including banks and mortgage lenders, often have a corporate mentality where the dollar comes first. However, I believe that if you take care of your people—clients and team members—the mighty dollar will take care of itself. Our philosophy is to try to help everyone who walks through the door, regardless."
Farmer has been in the mortgage business for 40 years. When he or any of his team meet with clients, they take the time to look over their financial situation and help them set realistic expectations. That includes understanding how much house they can afford, the monthly payments, and if they need a down payment. Should a client have credit issues, they will help them work on that score and eventually enjoy home ownership.
Farmer notes, "We try to treat everybody the same, whether you're buying a $200,000 or a $2 million home."
One of the clients' most significant questions is whether they should buy now or wait until interest rates come down. Farmer believes the rates will continue to come down as inflation comes down. However, there are drawbacks to waiting to buy, primarily due to a lack of housing inventory. With fewer homes for sale, as the rates decrease, more people will be trying to buy a limited number of homes, causing an increase in housing prices.
He says, "The home you can buy right now for $350,000 in two years could be $400,000."
"Or may not be available at all," adds Sadie Spalding, Executive Vice President and Chief Administrative Officer. "We can always refinance a loan six to twelve months out when rates do drop, and you already have the home you wanted instead of waiting to buy that home when everyone else is trying to buy it, too."
Farmer is passionate about the idea that home ownership should always be a person's first option, and the team's job is to figure out how to make that happen.
He says, "When I wake up in the morning, what motivates me is thinking about who we can help today, whether that's an employee, a client, or a realtor referral source. As I mentioned earlier, I believe that if you take this approach, the mighty dollar takes care of itself, rather than the other way around."
Learn more about Heartland Financial and Mortgage at HFMKC.com.
Our philosophy is to try to help everyone who walks through the door.