Educating NJ First Time Home Buyers about Information on the Internet
Last night I had the privilege of spending a little over half an hour on the phone with a first time home buyer. Initially I wasn't overjoyed at spending time with a client at 7:30 on a Friday night, but the reality was that I ended up having a good time helping a young couple understand the home buying process.
There are various programs available (which can be confusing even to someone in the business). Locally in Gloucester County and South Jersey there are several loan programs that first time buyers can take advantage of.
In this particular case this buyer had done a good amount of research on the Internet. And so it makes sense that they came across the same bogus websites that I come across when doing research: The websites that offer programs, incentives, and other options that DON'T EXIST. It is no wonder why many first time buyers are so confused; Even when they do study up and research they are bombarded with misleading, inaccurate, and even blatantly false statements.
Why do some websites and lenders mislead and even lie on their websites?
There are three main reasons I have found these misleading websites exist:
- To "up-sell" a buyer into something they "qualify for" (As the case in offering SUPER LOW rates)
- To sell ad space for other businesses (These sites often just get you there in hopes you will click on an ad on their page)
- To sell a buyer's information to a company that actually is a lender. (A lead generator site)
It is rather simple - they want "the phones to ring" so they can sell people on something. Some websites will pull people in with the right "keywords". Some of these websites will offer just a little information and THEN SELL OFF YOUR NAME AND INFORMATION TO REAL LENDERS, at times without the home buyer having any knowledge of this. Working with these websites is a roll of the dice at best!
Even with the great amount of regulation taking place in the mortgage industry, there are still some screwballs out there. As an experienced lender I can not emphasis the importance of working with a local lender. I will be the first to admit that I have no idea what first time buyer programs are offered in other states (Other than NJ and PA). And I can guaranteeyou that someone outside on New Jersey can not offer you programs that a New Jersey based lender can offer you. (Not even all NJ lenders can offer the same programs, such as the case with many NJ first time home buyer programs.)
When it comes to buying real estate, the phrase often used is location, location, location. Many people don't realize that when it comes to choosing a mortgage company and a loan officer, the phrase location, location, location is just as important.
If you specialize in first time home buyer programs in other states, feel free to contact me. I often meet buyers that I can not help in many other states.
Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.
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