Can I Negotiate Some Of The Mortgage Fees? – Ashley Ridenour
On this episode of The Closing Table, we sat down with Ashley Ridenour!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Ashley Ridenour…
The conversation began with a fill-in-the-blank icebreaker on the key to longevity as a realtor, what the real estate industry will be in 10 years, and more. Ashley then introduces herself as a wife of 13 years and a proud mother to an 11-year-old son. She holds the distinction of being the oldest among her seven siblings and cherishes spending quality time with her family and friends.
Geographically, Ashley operates in the Metro Detroit area, specifically in the suburbs of Detroit. Her services extend within an hour’s drive from Dearborn, covering multiple counties in the region. To narrow it down further, she specializes in the downriver area, located just 15 minutes south of Detroit along the Detroit River. This locale boasts a tight-knit community and holds particular significance for Ashley, as she was born and raised in Metro Detroit. The unique aspect of her location lies in its proximity to both urban cities and farmland, offering a diverse setting for real estate opportunities.
Ashley understands that the average consumer may not be familiar with the intricacies involved in a smooth real estate transaction. To make her clients feel more prepared and comfortable throughout the home purchasing or selling journey, she emphasizes the importance of effective communication and setting clear expectations. Recognizing that every client’s situation is unique, Ashley takes the time to ask a comprehensive set of questions—up to 50 of them—to gain a holistic understanding of their circumstances. This knowledge allows her to proactively devise tailored solutions to potential challenges that may arise during the transaction. From timelines to financing and more, Ashley values having a thorough understanding of her clients’ specific needs. Additionally, she adapts her means of communication to suit the preferences of each client, ensuring convenience and a seamless experience.
Beyond personal financial preparation, there are resources and assistance programs offered by local governments that can help buyers overcome financial challenges and make homeownership more attainable. Ashley emphasizes the importance of buyers and sellers being aware that a real estate transaction involves various professionals, including real estate agents, title companies, and mortgage loan officers. She encourages people to ask her about these resources because she has a wide network of industry contacts and can connect clients with the right loan officer that suits their needs.
Ashley is well-informed about different down payment assistance programs and understands that some may be more suitable for certain clients. She aligns herself with professionals who specialize in these programs on a daily basis, allowing her to effectively guide her clients and help them access the appropriate resources. She also mentions specific banks that are currently offering fully forgivable $10,000 grants, provided certain credit score requirements are met. By fostering open communication, Ashley gains a thorough understanding of her clients’ situations, enabling her to connect them with the most relevant assistance programs.
When it comes to negotiating fees at closing, it is generally easier to negotiate the fees charged by your lender rather than third-party fees. Ashley provides insights into negotiating mortgage terms and costs. She explains that mortgage costs cannot be negotiated at the closing stage; they need to be addressed during the process. It is crucial to have these discussions upfront when starting the mortgage process and not wait until receiving the final closing disclosure. There are two costs that can be negotiated: the loan origination fee and discount points.
Ashley advises clients to consider their goals carefully when aiming for a low interest rate. While a lender may offer a low rate, they may charge discount points to achieve it. If the goal is a monthly payment that is affordable and lower closing costs, paying for discount points may not align with the client’s objectives. It is indeed possible to negotiate mortgage fees, but only the loan origination fee and discount points can be discussed. Open communication with the loan officer is key, as clients should communicate their specific goals and allow the officer to guide them accordingly.
Addressing the question of how mortgage loan originators get paid and how negotiation of loan origination fees affects their compensation, Ashley explains that it varies depending on whether one is working with a broker or a retail company. The negotiability of the loan origination fee is contingent upon the chosen entity, such as a broker, credit union, or bank. Brokers typically offer negotiable fees, while credit unions and retail companies may have less flexibility in this regard.
Being a realtor involves being intimately involved in other people’s personal situations, and Ashley understands the importance of providing emotional support to her clients throughout the highs and lows of the real estate process. She recognizes that buying or selling real estate is often tied to significant life events, such as expecting or growing a family, going through a divorce, or downsizing after the death of a loved one. Ashley emphasizes the need for compassion while also keeping sight of the client’s ultimate goal. She acknowledges that emotions can cloud judgment and lead to irrational decisions. As an agent, Ashley sees herself as a thermostat or project manager, gently guiding her clients towards their end goal, helping them navigate the emotional aspects of the transaction while maintaining focus.
Striking a balance between being a professional and a friend with clients is a delicate task, and Ashley shares her approach to managing this dynamic. She believes it takes time to establish boundaries and understand the appropriate moments for personal connection during the transaction. While she wants to be there for her clients, she recognizes the importance of maintaining professionalism. Ashley understands the significance of timing and being mindful of the context and environment. Business always comes first, even when working with relatives or close friends. However, she also knows when it’s appropriate to let down the professional facade and be a friend. Over time, she develops relationships with her clients and learns to navigate these boundaries. Ashley shares a rewarding story of a client who became a friend, highlighting the joy of being part of their home buying journey and witnessing their growth beyond the transaction.
Managing unfortunate financial situations as a homeowner can sometimes lead to foreclosure, but there are options available to mitigate the situation. One such option is a deed-in-lieu of foreclosure. Ashley provides an explanation, stating that it occurs when a homeowner fails to pay their mortgage, and the bank initiates the foreclosure process. In Michigan, the foreclosure process has a relatively short duration, with a six-month redemption period. The homeowner receives letters notifying them of default and the upcoming share of sale, which is an auction where the home is sold. Within the six-month period, the homeowner can either pay off the redemption costs or buy out the property.
If these options are not exercised, the home officially forecloses. However, there are ways to avoid foreclosure, such as pursuing a loan modification, which involves modifying the loan terms to account for the unpaid balance. Another alternative is a short sale, where the homeowner works with an experienced agent to request that the bank accepts a loss on the loan. A short sale is beneficial for all parties involved, as it prevents foreclosure from appearing on the homeowner’s credit report, allows the bank to potentially recoup more money than through foreclosure, and enables the homeowner to purchase another property more quickly.
Regarding the question of whether it is possible to buy a home again after losing one to foreclosure, Ashley explains that it is indeed possible but typically requires a minimum waiting period of seven years. However, she emphasizes the importance of exploring various options to avoid foreclosure altogether. Seeking assistance from an experienced agent right away can provide valuable insights and guidance in evaluating available alternatives.
The conversation wraps up with Kevin asking Ashley that if she were to start over as an aspiring homeowner, what approach would she take to owning if she have the resources and knowledge she has today. The first step Ashley would take is to consult with a real estate agent and provide honest information about her financial situation. The agent can then connect her with a lender who will assess her for pre-approval. If pre-approval is denied due to factors such as a high debt-to-income ratio, Ashley suggests seeking guidance from a financial adviser who can help improve credit scores and reduce debts. Several key factors come into play, including having a minimum of two years of stable employment history, a credit score of at least 580 (or higher for conventional loans), and minimal debt. To qualify for a mortgage, it is crucial to manage debt responsibly.
To ensure the homebuying process is enjoyable and successful, Ashley emphasizes the importance of aligning oneself with an agent who is responsive and available to answer questions and provide guidance. Drawing from her personal experience of purchasing a home without industry knowledge, Ashley recalls the stress of relying on Google searches and well-intentioned advice from family and friends, which may not have been relevant or reliable. If she had the opportunity to start over, Ashley would have interviewed more agents, recognizing the value of finding an agent who can provide the necessary support and guidance throughout the homebuying journey.
Check out Ashley Ridenour:
Facebook: https://www.facebook.com/ashley.wilson.75470
Facebook Business Page: https://www.facebook.com/Ashleyridenourr
If you loved this episode subscribe so you never miss one! Want more The Closing Table content? Head over to our blog.