The lending industry is changing in a big way. Actually, in several big ways. Most people close to it would agree. They’re looking at all sorts of trends, from peer-to-peer lending and microfinancing to the evolution of blockchain and decentralized finance projects. And even that is only part of the picture. There are lots of changes in how “vanilla” property lending works, too, with advances in business processes, but other complexities, too, that can actually make deals harder in some ways.

So Many Choices

Here’s another major aspect of lending for the majority of borrowers who have limited capital to bring to a deal up front. You have, for example, an FHA loan that relaxes certain money down restrictions, but leads to private mortgage insurance applied to the life of the loan. You also have no money down options, where any down payment is folded into successive monthly payments. Which of these is right for your borrowing strategy? The answer can involve some research.

Less Human Contact

In the hours of dealing with multiple stakeholders during a mortgage or refinancing process, you may find that it’s hard to get a hold of a person and spend time face-to-face to work out a deal. This is another major challenge in today’s lending world that we work through with our clients. In this kind of scenario, what if you have questions about FHA vs. conventional? What if it’s not an easy decision? That’s when communication matters most.

The Emergence of Cryptocurrency, Defi, and New Tech

Cryptocurrency and new technologies also complexify the lending market. In some ways, they break down barriers and limitations, but in other ways, they lead to even more confusion and uncertainty about lending outcomes. A term called “decentralized finance” or “defi” brings with it the promise and the peril of completely different lending models, and all that entails.

The bottom line is that we can help Kirkland, Washington families and individuals to utilize their capital in the ways that make the most strategic sense for them. If you need price leader guidance from capable, attentive people, call us and let’s talk about what makes the most sense for you in today’s market. The context of a deal is critically important, but so is the methodology. You need to be able to know how to “work the market” and what your options are. Don’t wait to get the information that you need to make a good deal – because the market, once again, moves quickly!