Home Ownership, Finances, and Values: A Chat with Dean Harrington of Shamrock Financial Corporation

EAST PROVIDENCE, R.I. - Dec. 12, 2014 - PRLog -- In a recent question-and-answer session with Shamrock Financial CEO Dean Harrington, the host of television show For the Record Shawn Murphy delved into topics surrounding home ownership, finances, and of course, Shamrock Financial itself.

Tell us about Shamrock Financial and how it dealt with the housing crisis of 2008: “We started in 1989 so we’ve now officially seen every kind of real estate market ever invented.  The largest cracks started to become evident in late 2006 and into the summer of 2007. Many of the previously available mortgage products dried up so tons of potential buyers could no longer enter the housing market. This started the proverbial domino effect – fewer buyers in the market, too many houses coming onto the market, lower values – and thus no ability to refinance for people in trouble. Bad mix. This also began the purging of competing mortgage lenders, many who relied on refinances and sub-prime lending. Fortunately, we transitioned nicely into the purchase-only market of 2008, 2009 and have flourished since.

How would you describe the current state of the housing market? In 2015, I see the continuation of a sellers’ market because we simply don’t have enough homes available for sale. There is what we call a “shadow inventory” – homes held by large pool of investors from foreclosure inventory -  that could become available and really change things to a buyers’ market but that remains to be seen. But let’s keep our eye on the ball: rates are low, rents are increasing so buying a home in 2015 is a great idea.

Where do you see the future of housing? Gradual price increases, more aggressive lending and  more inventory. All looks to me like the return to a traditional lending market. The 90’s with better rates. Keep in mind that, since 1930, real estate typically doubles in value every 10 years - but not in a straight line – so I’m hopeful for that to be the case once again.

What advice would you tell potential clients who are thinking of entering the home market? Everyone - new or existing home owners - must be prepared financially. You need to make sure that you can pay back your mortgage so that we do not experience another housing meltdown. Don’t leave yourself cash-dry when you buy. Have a Nor’easter Day fund not just a Rainy Day Fund.

How much should a home owner have as a down payment? Enough to avoid mortgage insurance if possible and if that is not possible then as little as possible to retain that Nor’easter Day Fund. For example, you can put down as little as 0% or as much as you want. Many clients have a 3-5% down payment. Here at Shamrock, we act as financial planners to an extent. We want to put people in homes and have them STAY in homes.

How do you find the right real estate agent? Interview them. Treat it like a job. After all, they are working for you. Ask them about their last housing transaction. You want to hear details: the type of people who bought the home, the price, type of home, and details of the loan. I’d look for the specifics.

How can Shamrock Financial help potential clients? Our philosophy is Educate & Motivate. We want every client fully informed – about everything. We use dedicated in-process communication tools – emails, texts, video – to keep the buyer tethered to the process each step along the road. We effectively assign a personal concierge to each buyer and real estate professional.

Tell us about your web site: As I said, we aim to Educate and Motivate out clients, and our website reflects that practice. For example, it contains a webinar library, two blogs a week about seasonal, economic, topical events and titles, as well as links to social media for networking and easy access to information.

Are we out of the recession? Technically, yes, however, employment numbers should be higher. Many people are underemployed, still lots of capital on the sidelines, housing starts need to be higher. Businesses are hesitant to hire – they don’t want to be in the position to let go of staff, especially full time employees. Obamacare worries many employers.

What can potential home buyers do to help their chances of getting a good loan? Improve your credit rating. It is just as important as having a decent down payment and income. Aim for a rating of at least 620 or higher. Here at Shamrock, we can help you find the right path to clean up your credit so that you can achieve your dream. Also, people need to pay attention to their financial details on a regular basis. It is a common misconception that routinely viewing your credit will adversely affect the  score. After all,  knowing is much better than not knowing.

About Shamrock Financial

To find information about Shamrock Financial and to access tools for consumers and real estate professionals alike, visit http://www.shamrockfinancial.com/.