Monica first came across Dan while she researching mortgage reports. He actually started two separate ventures — first, was The Mortgage Reports, and second, he recently moved into a broader personal finance field with his project Growella. This project extends beyond mortgage and real estate, although that’s where Dan’s passion lies. In today’s episode, Monica and Dan discuss relationships and communications with lenders and details about some of the products, as well as suggestions on how to keep in touch with clients. There are many people who want to buy a home but don’t think it’s possible because they’re not getting access to the information that lets them know how possible it really is. It really means a lot for people to own their own home, and it is a privilege here. For the next generation of home buyers, many of their opinions about finances were shaped by the negative attitude in the economy in the previous decade. One of the things Dan strives to do with his team is to empower people to let them know yes, you can get a home. As REALTORS®, we need to recognize that we don’t know it all, and it’s important to have a mortgage lender that you know and trust and that you can recommend to your clients. How can real estate agents work with lenders and help facilitate the process without giving advice on something we don’t know about? When REALTORS® are working with mortgage lenders, both the REALTOR® and the lender are working toward the same goal. The situation for each buyer will be different, and in the end, both parties want to do what’s best for the client. As a REALTOR®, it’s important to read and keep up with mortgage-related news so you can be aware of when your client may be missing a piece of information. In these instances, it’s important to refer your client to a lender, who can handle the details of the situation better than you can. It may be more likely you’re in a situation where you don’t know your client’s mortgage lender. It can be hard to put your faith in someone you don’t know, but we must remember that any mortgage lender who is serious about their business will hold each of their clients to the highest regard. Lenders who you don’t meet face to face often put a different standard of care on being available for communication. Proactive communication will help everybody be in the know more quickly and can pave the way for easier communication moving forward. It can prevent a lot of miscommunication and potential drama. Many lenders are using their open communication as a selling point to clients. This helps REALTORS®, as well, and it’s important for REALTORS® to respect the two-way channel of communication between themselves and the lender. There are several different types of loans. Conventional mortgages are any mortgages that are backed by Fannie Mae or Freddie Mac. They make up about two-thirds of all loans that are done. The stereotypical conventional mortgage borrow no longer exists. This is in contrast to the FHA, which used to be thought of as a home affordability product, and used to have a stigma attached to it for several years. There are also VA loans, which are loans that are available to people who are active military or veterans. They are most well-known for being 100% mortgages (the average down payment is 2%). The USDA loan (United States Department of Agriculture) are also 100% mortgages, and they offer lower interest rates as compared to other loan products. These are meant to promote home ownership in less densely populated areas. For these four types of loans (conventional, FHA, VA, and USDA), many borrowers can move interchangeably between these four. You can’t necessarily know what’s best for you client without talking to a loan officer. Dan talks about some mortgage options that exist within these four categories, and the goal of the mortgage lender is to figure out which option is going to be best for the borrower for their specific home in this time. It is a constantly movi