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Proven, successful real estate prospecting strategies include:
- Calling expired real estate listings (perhaps their listing price was too high or their previous agent was not of the highest quality; a word of caution - these people are likely frustrated with real estate agents and so you must work extra hard to convince them that you are hardworking and smart)
- Talking to For Sale By Owners (over 85% of people trying to sell their own homes give up and hire an agent)
- Going door-to-door
- Calling past clients
- Sending holiday cards/ small gifts with your name and contact information (my family is a big fan of magnets)
- Calling people in your social network (everybody knows someone that wants to buy or sell a house)
- Calling out-of-town owners (a lot of them may be facing frustrations with managing a home from a distance and be ready to sell)
- Sending a notice to your alumni or fraternity/sorority newsletter (there could be alumni in your area)
- Paying for the White Pages to make your name distinct, such as bold or large lettering
- Organizing neighborhood parties (what better way to build rapport with the people that live around you)
- Creating a quarterly neighborhood newspaper that includes news such as weddings, honors, college acceptances, move ins and outs, selling prices of homes, etc (of course the newsletter will include your photo and contact information)
Considering refinancing your mortgage? If you hold off
until the fall, you might not be able to afford it.
If you've been putting off that mortgage refinance you've been thinking about, beware: you might
not be able to afford it - or even qualify - if you wait until fall.
Why? Rising interest rates, an improving economy, and impending stricter lending guidelines
mean waiting a few months to refinance a mortgage could be a costly mistake.
Here are three reasons mortgage experts say you should refinance before fall arrives.
The Government May Stop Investing In Mortgage-Backed Securities
Are you holding off on a refinance until the government confirms the economy is improving?
Doing so could make your refinance more expensive. Why?
In March 2013, Federal Reserve Chairman Ben Bernanke said the Fed may adjust the pace of
buying mortgage-backed securities according to the pace of economic recovery - which means
slowing purchases if the economy improves.
The problem is that the buying of mortgage-backed securities has been a large contributor to
rates staying low, says Dean Vlamis, VP of Residential Lending at Perl Mortgage in Chicago, IL.
In fact, rates have already jumped in recent weeks since the Federal Reserve Board starting
hinting at ending the buying program. For example, the average interest rate in May 2013 for
a 30-year fixed-rate mortgage was 3.54 percent, and jumped to 4.07 percent for June 2013,
according to Freddie Mac.
So with rates already on the rise, the time to lock in a rate is now - before they go up even more.
Tightening Credit Guidelines May Make it Difficult to Qualify
Though they won't come into effect until January 10, 2014, changes are coming to laws that
govern how strict lenders have to be when qualifying borrowers for mortgages, including
refinances. And your lender may soon start getting ready to use the new guidelines.
Amendments to the Dodd-Frank Act, a consumer protection rule that identifies mortgage
qualification criteria, will require lenders to confirm at least eight criteria through third-party
documentation, including other debts, child support and alimony payments, and income.
Because of these stricter qualifying standards, prospective homeowners may find it difficult to
get approved for a loan.
And don't be surprised if the guidelines start changing before January 10th.
"Some lenders may adopt tighter credit guidelines later this year in anticipation of new DoddFrank rules set to take effect in January 2014," says Mayfield.
So, to avoid the extra paperwork and tighter application requirements, homeowners should
refinance now - before their lenders implement these changes.
Improving House Prices
The median existing single-family home price rose a whopping 12.9 percent in the 12-month
period from May 2012 to May 2013, according to the National Association of Realtors. And
while the real estate market is improving, it may not be good news if you're planning a fall
refinance.
"For the first time in years home values are increasing," Vlamis says. And while higher home
values give refinancers more equity in their homes, Vlamis also cautions that an improving real
estate market also means that interest rates are likely to rise even higher - so you have to act soon
to reap the benefits.
What's more, Mayfield says it can take longer for a loan refinance application to be approved
than a mortgage on a new home purchase. And with the housing market improving, refinance
applicants may be waiting in a long line to get their paperwork processed.
"Borrowers should be aware that lenders typically give priority to purchase loan applications
over refinances," says Mayfield. In fact, borrowers who want to refinance in the fall may have to
wait longer for their transactions to close as the purchase market continues to pick up, she warns.
