The Importance of Financing and Home Lending Savvy for Real Estate Agents

As a real estate agent, it is important for you to stay ahead of the curve. One way to do that is by studying financing and home lending. This area of real estate is constantly changing, and it's important to be knowledgeable about mortgages and other types of loans. By understanding financing and mortgages, you can do more for your clients and help them find the best deals possible. In this blog post, we will discuss the importance and advantages of being well-versed in the financing side of real estate.

Set realistic expectations for your clients.

One of the most important things you can do as a real estate agent is to set realistic expectations for your clients. This is especially true when it comes to financing and home lending. Many buyers think they can just go to a bank and get approved for a loan without any knowledge of the process. However, this is often not the case.  There are many different factors that go into getting approved for a loan, and it is important to be able to explain this to your clients. If you have knowledge of the financing process, you can help your clients understand what they need to do in order to get approved for a loan. You can also help them understand what type of loan would be best for their situation.

Make sure buyers are aware of their finances.

As you guide buyers through their home search, you can also make sure they're taking the steps necessary for a smoother financing process.  You don't want your buyers to become discouraged because they can't get approved for a loan. By tackling steps like pre-approval early on you can ensure a more appealing offer and a quicker close. You can also help buyers with understanding their credit, and how even seemingly small financial decisions can impact their credit report and in turn the process of securing financing.

Give buyers and sellers more informed market advice.

There is more to the real estate market than metrics median prices, time spent on the market, and other local trends. By being aware of developments in the mortgage space, you can better advise your buyers on when is the best time to buy or sell. You'll also get a better idea of how changes and trends in the mortgage industry are shaping the direction of the housing market and buyer/seller sentiment, helping you stay ahead of the curve. You can also inform buyers about historical rates and market trends, and why it might be a better time to buy than they might think.

You have to take continuing education anyways.

Why not make CE work double duty and take courses that will not only fulfill your requirements but also improve your skillset and marketability? Not to mention, being knowledgeable about mortgages and financing will only help you in your future career as a real estate agent. There are simply no downsides to becoming an expert in home lending!

Put yourself on the path to Mortgage Loan Origination

Taking CE courses on the subject of financing will prove advantageous if you begin looking into the possibility of obtaining an MLO license. Earning your MLO license is a great way to show your commitment to your profession, and make you even more valuable to a broader pool of potential clients. By studying for and passing the NMLS Exam, you'll be able to originate loans in addition to working as a real estate agent.