Professional Spotlight: James George, President, Global Mortgage

What would happen if a team walked onto a field without a goalie, a shortstop, or a center? That’s how valuable a mortgage expert can be for a homebuyer. We all can use someone to ease the financial pressures of achieving or maintaining our goals of homeownership, but having the right professional can feel like playing alongside Andre Blake, Trea Turner, or Jason Kelce.

Founded in 2001 and located in Warminster, PA, Global Mortgage, Inc. is licensed in Pennsylvania, New Jersey, Delaware, and Florida. “We assist clients on credit enhancement, program flexibility, and education,” Global Mortgage President James George said. “Whether it’s a purchase or refinance transaction, our brokerage has options to assist all types of clients.”

For the past several years, homebuyers (I was one of them) found themselves competing for overpriced homes with many upkeep items and rates that were stretching their budgets. That may have created a belief that maintaining homeownership is out of reach. According to George, the time may be now to act. The latest rate drop has made it easier for owners to lower their rate or even cash out to consolidate debt or make that home improvement they’ve been waiting to start.

For potential homebuyers, many who are waiting to build a 20% down payment on a conventional loan, the fear of record high prices may be keeping them from fulfilling their goals of ownership. Yet even in this market, buyers can still find solutions. “The challenge to save 20% plus closing costs can end up costing the client money,” George said. “Homes have increased 10% in price year after year, and it’s difficult to save at that rate. We offer numerous 3% down programs and even 100% financing options to assist the client in obtaining the house at a price now rather than watch the prices continue to increase.”

Potential homeowners can feel better knowing how a mortgage broker helps them acquire their dream home. With the process of homebuying affected by the recent NAR settlement and buyers on the hook for agent commissions, one positive is that George doesn’t see a big difference in the way buyers close. “Many of our transactions remain somewhat unchanged. There are options for rate credits when these situations arise.”

This means homebuyers can still trust the experience a valuable team member provides when the game is on the line.

The current market has been difficult for young homebuyers. Whether a lack of savings, mounting student loan and credit card debt, or the increasing cost of groceries, additional monthly expenses affect debt ratios and ultimately buying power. But before parents worry about their twenty-something year old children and their families moving back in, George and his team recognize new trends. “The younger buyers are looking at multi-unit homes to share the cost of mortgage debt, and several clients are purchasing a home with friends or family members to get started in the market.” While building equity through a partnership can help homebuyers achieve similar end results, Global Mortgage does offer grants and specialty programs to allow younger buyers to focus on lowering debts rather than runaway mortgage payments.

Despite the changes in the industry over the past several years, owning a home is still a stable investment and a dream worth pursuing. With the right teammates, current owners can avoid feeling bogged down by house expenses, and potential homebuyers can be a champion of the process.

Visit www.globalmortgageteam.net to achieve your homeownership goals today. For additional tips, Global Mortgage also posts a blog with invaluable information.

Buyers Post-NAR Settlement

If you haven’t been following the real estate market lately, you may have missed the latest news to affect the homebuying process. Earlier this year, the National Association of Realtors settled a class action lawsuit over alleged antitrust violations, which resulted in slight changes to how real estate transactions occur moving forward. Though the NAR affirms that agent commissions have always been negotiable, the center of the issue is the communication and transparency of consumer information. As a result, the consumer is now more informed when entering a transaction, and though current homebuyers may have been affected the most, the long-term benefit of the settlement lies within the homebuyer’s control in the process.

So what’s changed?

Agreements between a buyer and broker via an agent are now required before an agent is permitted to show a home.

Though buyer agreements have been strongly recommended for decades, most real estate buyer-agent relationships had been solidified through an Agreement of Sale. Buyer agent compensation is Included in this agreement. Prior to August 17th 2024, buyer agents were typically paid by the seller through what is known as a broker cooperation agreement. Essentially, a seller’s agent was paid a commission by the seller then split that commission with a buyer agent for bringing the buyer to the table. The buyer didn’t need to put up the funds necessary to pay their agent because compensation came from the seller. That has since changed. A buyer is now responsible for compensating their agent as agreed to in the buyer agency contract, and that number has to be specific in the BAC, whether a percentage of the sale price, a flat amount, or any other agreed upon number.

What’s important to note is that agent commissions are negotiable. When buyers are about to work with an agent, they should have conversations upfront about what the agent will do and what their time and efforts are worth. Also, buyers do not need a contract to speak with an agent at an open house or inquire about their services.

During this post-settlement transitional period, buyers may be better informed about their options but may not be financially prepared to incur these extra costs. Fortunately, support may still come from the seller. In an Agreement of Sale, two categories under Seller Concessions define how buyers may request financial support. Sellers may offer a buyer broker fee or closing cost assistance. The buyer broker fee refers to a buyer asking a seller to cover some or all of their agent’s commission. Sellers may still approve a seller’s agent to share a portion of the commission with the buyer agent as had been done in the past. All that transaction requires is an additional form that recognizes the agreement between two cooperating brokers. This section asks a seller directly for support. Closing cost assistance, formerly known as a seller’s assist, provides money back to a buyer at closing to pay for costs not associated with buyer broker fees. So whether it’s support with an agent commission or additional closing costs, a buyer may receive assistance from the seller to secure the deal. Other options for buyers to find additional funds should be discussed with a mortgage lender.

But why would a seller offer assistance to a buyer’s agent? For the simple reason that sellers still need buyers. Even in a seller’s market, more buyers means stronger offers. Sellers who fail to offer some sort of cooperation this soon after the settlement changes could be losing out on an opportunity to reach motivated buyers.

The second change to come out of the settlement for buyers focuses on the role Multiple Listing Services play in the sharing of information. MLSs are the most prominent way brokers share information with other brokers. After August 17th, 2024, seller agents are not permitted to advertise buyer agent compensation through the MLS. Sellers can still offer buyer agent compensation, as stated earlier, but must relay that information through other forms of communication (conversations, company website, flyers, signs, social media, etc.). A buyer’s agent can’t just rely on the information through MLS. They will need to pick up the phone or check another source.

In the end, the recent changes from the NAR settlement should bring more awareness to the buyer about the process of real estate transactions and encourage transparent conversations about a buyer-agent relationship. That in itself, should help buyers navigate one of the most stressful financial decisions of their life.

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