Pro Spotlight: New Home Mortgage Expert Shelly Scheuer
While taking the first steps toward buying a new home is undoubtedly exciting, we understand that navigating the new home mortgage landscape can be intimidating. That’s why at Cristo Homes, we work with local preferred lenders to make the process as easy as possible for our homebuyers.
That’s where home mortgage expert Shelly Scheuer steps in. With over 22 years of experience, Shelly is not only a certified trainer for home financing in Ohio, but also a preferred lender who has helped countless individuals and families secure their dream homes.
Read on to discover Shelly's valuable insights on mortgages, common mistakes to avoid and her invaluable advice for new home buyers.
The Role of a Preferred Lender
As a preferred lender, Shelly has established trusted relationships with builders like Cristo Homes. “Builders prefer to have specific lenders that they work with that they know and trust,” she explains. Her expertise and reliability have made her a key player in the industry.
Shelly’s deep knowledge of new home mortgages is a valuable asset for buyers. “I'm also a certified trainer for home financing in the state of Ohio. I teach Realtors about construction financing,” she says. She simplifies the financing process, emphasizing, “The loan doesn't know whether your house is new or old. All the loan cares about is that you pay it back.”
Understanding Fixed-Rate vs. Adjustable-Rate Mortgages
One of the first decisions homebuyers face is choosing between a fixed-rate and an adjustable-rate mortgage. “The vast majority of mortgages are fixed rates,” Shelly explains. “The only people that I ever suggest doing an adjustable rate mortgage are investors or people who are buying a house to fix up and sell in a year or two.” For most buyers, the stability of a fixed-rate mortgage is preferable.
However, Shelly acknowledges scenarios where an adjustable-rate mortgage might make sense. “We have a lot of ‘relo’ customers in Cincinnati because we have P&G and GE, some larger companies. So, if it's a customer on a contract for two years and then they're relocating, I might suggest an adjustable rate mortgage if the rate is lower than the fixed rates,” she says. But she cautions, “The hard thing about this market right now is there are not a lot of good adjustable rate mortgage products out there that are significantly lower than fixed rates.”
Shelly also emphasizes that situations may change, even for someone who plans to only live in an area for a short time. “Never say never: You can have your best-laid plans of only being here two years, and then maybe you meet the love of your life and decide to stay forever. Then you have to worry about the rate adjusting.”
The Impact of Credit Scores
Credit scores play a critical role in determining mortgage terms and interest rates. “Credit score is the most significant impact on a mortgage loan in terms of the terms themselves and interest rates,” Shelly explains. A higher credit score can significantly lower your mortgage rate and monthly payments. “If you have a 700 credit score, you might get a rate of 7 percent. If your score is 650, you might get a rate of 7.5 percent.”
Private mortgage insurance (PMI) is another cost influenced by credit scores. “PMI also varies with credit score. A 700 credit score might have PMI of $50 a month, while a 650 score might have $100 a month in PMI,” Shelly adds.
Avoiding Common Mistakes
During her lengthy career, Shelly has seen her fair share of mistakes that can derail the mortgage approval process. “The biggest ones that I see are buying a new car and wanting furniture for their new home,” she says. Purchasing these big-ticket items can have an impact. “They'll do a 12-months same as cash and think that it doesn't affect anything, and it does.” These financial decisions, while exciting, can impact credit and mortgage eligibility.
Another common error is changing jobs during the mortgage process. “Changing jobs can also be a mistake, especially if they are changing to becoming self-employed or a 1099 employee, which can disqualify them,” Shelly notes. Large, unexplained deposits into your bank account can also raise red flags. “This is a big red flag for underwriting,” she warns.
To help her clients navigate these pitfalls, Shelly uses educational videos and offers courses. “I use videos to guide clients through every phase of the mortgage financing process. My most popular video is called the '10 Commandments,' which tells people what to do and not do when considering buying a home.” This resource is so valuable that she sends it to all her clients, even those who have previously owned homes.
Locking in Interest Rates
One of the unique benefits Shelly offers her clients buying a new construction home is the ability to lock in interest rates. “We give our customers an option to lock in an interest rate at that time when they're starting the construction for up to one year.” This opportunity provides peace of mind in a fluctuating market. Additionally, if interest rates drop as the closing date nears, Shelly’s clients can benefit. “If the interest rates go down when they are within 30 days of their closing, we can float them down to a lower rate for free.”
Working With Cristo Homes
Shelly’s long-standing experience with new construction and remodeling has led her to team up with home builders like Cristo Homes. “Cristo Homes has a great process. They work very well with my team, and it's always very smooth,” she says, praising the collaboration. "I have been certified in new construction and remodel, and I can do renovation loans too for 22 years. My best builders and favorite builders to work with are the family businesses,” she added.
New Home Mortgage Expert Advice
Shelly’s wealth of knowledge extends beyond mortgages. She encourages potential buyers to explore neighborhoods thoroughly. “It's important for buyers to drive around in different areas, both day and night, to see if that's an area where they really want to live.”
Shelly Scheuer’s expertise and dedication make her an invaluable resource for our new home buyers. To make sure you're checking off every step of the new home mortgage process, check out Shelly’s new home buying checklist. If you're in the market for a new home, contact us today to start your journey.