The Market Is Moving Fast and Your Purchasing Power Is Not Guaranteed
We just dropped Episode 6 of the Off the Market Podcast, and I am going to be honest with you… this one hit different. We brought in Alex Shelton, a 14-year residential mortgage advisor right here in the Coachella Valley and the surrounding desert, and from the moment we started recording, the information just kept coming.
If you got pre-approved a month ago and you have not heard from your lender since, this episode is your wake-up call.
Why Interest Rates Are All Over the Place
One of the first things we got into was the rate volatility we have all been feeling. Rates jumped half a point just recently, and a lot of buyers had no idea why or what it meant for their budget. We talk about some of the current circumstances that may be influencing the housing market overall.
Global instability, oil supply concerns, and bond market shifts are all playing a role. And because of that, your monthly expenses can change significantly from one week to the next. That is exactly why your lender should be giving you at minimum a weekly update on where things stand, not just going quiet until you find a house.
The Negotiation Tool Most Buyers Are Sleeping On
This was one of my favorite parts of the conversation. Alex explained seller credits in a way I think a lot of buyers and even some realtors have never fully understood.
Instead of just trying to knock down the purchase price, you can ask for a seller credit and use it to buy down your interest rate through mortgage points. Three points can lower your rate by a full percentage point, which could mean a difference of around $200 in your monthly payment. For a seller, a credit and a price reduction can net out the same. For you as the buyer, the credit can change your financial picture for the entire life of the loan.
There are three levers you can pull: money out of pocket, your interest rate, or your monthly payment. Alex was clear that you cannot have all three. Knowing which one matters most to you before you start negotiating is everything.
How Regular People Start Building a Real Estate Portfolio
We also got into “house hacking,” which is one of those strategies that sounds complicated but is actually more accessible than most people think. If you have owned your primary residence for at least a year, you can buy a new primary with as little as 5% down, convert your current home into a rental, and use the projected rental income to help you qualify for the new loan.
Alex called it the leapfrog method. You are not selling. You are stacking. And you do not need to be a seasoned investor to start.
Go Watch the Full Episode
We barely scratched the surface in this post. Alex also broke down DSCR loans for investors, adjustable rate mortgages, HELOCs versus cash-out refinancing, and renovation loans that let you finance a fixer-upper and the repairs in one single loan.
WATCH THE FULL INTERVIEW BELOW! 📺
