A new way to look at the mortgage preapproval process

On any given day, people make important decisions that impact their personal financial lives, whether it's large purchases, stock investments, managing debt, or saving for long term goals like retirement. However, one of the most important financial decisions with the farthest-reaching consequences for a family's financial future is buying a home and determining the amount of home purchasing power they have and the mortgage to support this decision.

The irony is while people often will spend a dozen hours or more researching a stock investment of a few thousand dollars, or maybe looking at mortgage rates online, but not the amount of purchase power they have and what that means to their financial situation. And this is often the biggest financial commitment people make. The problem today is that many consumers think of a mortgage as simply a financial tool that helps them finance their homes and not as a key component of their financial future. Compounding this problem is that much of the financial services industry approaches mortgages the same way. But at Opes Advisors we see things differently.

Entering the mortgage process is part of one's real estate decision, which it is a very complex financial puzzle that is different for every person, based not just on their current needs, but their lifetime goals and plans. That's why at Opes Advisors, we see real estate decision-making as a key component of each family's financial future.

Asking the right questions

Today's housing market is complex and changing rapidly, both buyers and sellers know it. Currently, more than 70 percent of adults believe that now is a good time to buy a home and 43 percent believe that strongly, according to the National Association of REALTORS®. With rising rents, rising rates, appreciating home prices yet still historically low mortgage rates, homeownership continues to be attractive for the long term. Importantly, first-time buyers accounted for 34 percent of all home sales in June, up more than 30 percent since May and the highest in over four years, the NAR says. But is this trend reversing, are people more afraid today than even three months ago?

Unfortunately, home buyers may be asking the wrong questions. Before determining if you can afford a home, each buyer should ask, "In light of my personal financial situation and my long-term financial goals, is now the best time for me? If so, what works best for me today and tomorrow?" Again, the decision to buy a home and finance a mortgage is not a one-size-fits-all answer.

Leveraging Mortgage + Tech + Advice

We choose to look at the mortgage as part of the real estate decision process, because it is a vital piece of one's overall financial strategy. That's why we created Opes Advantage, a revolutionary technology invented in Silicon Valley. It is the first real estate decision technology to fuse mortgage lending services with financial advice. Opes Advantage provides clients with a personal financial analysis that empowers more effective life decisions, such as buying a home, which is one of the most important financial decisions people make.

Powered by Opes Advantage, our new mobile app (called OpesView™) helps home shoppers see the future financial impact of buying a house at different price points before they make an offer. How much the bank approved is important, yet more important is how a home loan can affect one's lifestyle.

In a matter of 45 minutes, working with one of our Series 65-Registered Advisors, home buyers get to see the future of owning their new home inside their long term financial concerns. Working with Opes Advisors, people get to imagine different possibilities of things that might happen in their future and how they will impact their finances – 5, 10, 20 years down the road. This unique process, only available from Opes Advisors, helps people discover what matters for their financial lives, for all times in life, and allows them to move forward confidently.

Why does a new approach to mortgage matter to real estate agents?

Many home buyers struggle unknowingly with financial uncertainty, and it's not limited to first time home buyers. Real estate agents often recognize the signs of this condition – looking within a wide range of home prices, unsure of how much they can bid on a new home and difficulty in making a real estate decision. Just because the bank qualified them for a loan, doesn't mean buyers are comfortable with the amount or understand how the financing affects their lifestyle. By contrast, home buyers who get to see the long-term impact of their home purchase – and its financing – on their own financial future are settled in their real estate decision and better prepared to act. For real estate agents, a confident home buyer also has peace of mind after the closing, and is more likely to use their services again or make referrals.