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To succeed in such volatile times, some pivoting may be in the offing: “You may need to spend twice as much time with the client as before on qualifying for the best program or pricing,” Cooke said. “But you must do whatever it takes because, if you don’t, someone else will.”
Housing affordability will continue as a factor this year, he added: “With rates at 7%, affordability is a concern for many buyers, especially first-timers,” Cooke said. “Taking the time to educate buyers about the state of the market and thoroughly explaining their options is more important than ever.”
Given the state of the market, it might be time to be creative. “The seller-paid temporary rate buy-down loan program has gained steam industry-wide in recent months,” Cooke noted. “It’s been a great program to help buyers withstand the spikes in interest rates and spur demand on the buying side, which would have otherwise led to further declines in home prices. Additionally, our lender-paid temporary rate buy-down option has been even more popular with many of my clients.”
And yet, this too shall pass: “As most economists have predicted, rates will eventually fall as inflation declines,” Cooke said. “How fast that descent may happen, or how high rates may go, is unknown. Regardless of the direction of rates, learning to focus time and energy on things within your control will make you a better originator.”
This year, he added, will serve as something of a litmus test: “2023 will be the greatest test and challenge many originators have faced in years,” he said. “However, as the famous Mark Cuban says: ‘If you outwork everybody, if you try to be a little smarter than everybody, if you try to be a better salesperson than everybody, if you try to be better prepared than everybody, you got your best chance. Because if you don’t do it and somebody else does, work like someone is trying to take it all away from you.’”
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