Mortgage Questions Every Home Buyer Is Asking Right Now: A Conversation with JR Obrecht of Homestead Financial
For many buyers, the mortgage process can feel overwhelming. Between rising home prices, fluctuating interest rates, and conflicting information online, it’s hard to know what advice to trust.
To help answer some of the most common questions buyers have today, Quinn Realty sat down with JR Obrecht of Homestead Financial. With 23 years of experience in the mortgage industry, JR has helped thousands of buyers throughout Southern Illinois (and beyond) navigate the home financing process—from first-time homebuyers and VA borrowers to families relocating to the area.
We asked JR the questions he hears most often and had him separate mortgage myths from reality.
Meet JR Obrecht
JR has spent the last 23 years helping people secure home financing, including 21 years with Homestead Financial. Based in Southern Illinois, he serves buyers throughout the region from offices in Edwardsville and Mount Vernon.
What keeps him passionate about the business after more than two decades?
“I love helping people understand the process,” JR says. “I enjoy answering questions and working on the tougher deals—the situations where someone has been told they can’t get approved, and we’re able to find a solution.”
Because Homestead Financial handles underwriting internally and works with multiple investors, JR says they can often provide quick answers and financing options tailored to each buyer’s situation.
Should Buyers Wait for Interest Rates to Drop?
It’s one of the biggest questions in today’s market.
JR’s answer may surprise some buyers.
“We still have a shortage of homes,” he explains. “When interest rates eventually come down, more buyers will enter the market. That increased demand could push home prices even higher.”
Rather than trying to perfectly time the market, JR encourages buyers to focus on whether purchasing a home makes sense for their personal financial situation today.
What’s More Important: Interest Rate or Monthly Payment?
Many buyers become laser-focused on interest rates, but JR says that’s not always the best approach.
“Ideally, you want the lowest monthly payment that fits comfortably within your budget.”
He also cautions buyers against chasing the lowest advertised rate.
“Interest rate isn’t everything. Sometimes a lower rate comes with significantly higher costs. Buyers need to look at the entire picture, not just one number.”
How Do You Know What You Can Afford?
According to JR, the mortgage process should start with a conversation—not a calculator.
“When someone applies, I ask a lot of questions to understand their financial situation and, more importantly, what monthly payment they’re comfortable with.”
He believes affordability isn’t just about what a lender will approve.
“Just because you’re approved for a certain amount doesn’t mean you should spend that amount. Buyers should establish their own comfort level and stay within it.”
How Do You Know What You Can Afford?
For buyers who think homeownership is out of reach, JR says there are often more options than people realize.
Sometimes those options include down payment assistance programs or grants. Other times, it’s a matter of reducing debt or making small financial adjustments to improve affordability.
“Not every conversation ends with an immediate approval,” he says. “Sometimes my job is helping people create a plan to reach their goals. We coach them through the process and help them make smart financial decisions.”
The Biggest Mortgage Myth: You Need 20% Down
If JR could eliminate one mortgage misconception forever, this would be it.
“Twenty percent down is absolutely not required.”
Many buyers are surprised to learn that loan programs often allow down payments of just 3% to 5%.
For buyers wondering how much cash they should realistically have saved, JR says 5% is a good target.
“Many buyers can negotiate seller-paid closing costs, and most programs fall in that 3% to 5% range.”
What Factors Affect Your Mortgage Rate?
Mortgage rates aren’t one-size-fits-all.
According to JR, several factors influence the rate a borrower receives, including:
- Credit score
- Debt-to-income ratio
- Employment history
- Income
- Loan amount
For buyers hoping to secure a better rate, he recommends focusing on improving credit, reducing debt, increasing savings, and strengthening overall financial health before applying.
For buyers wondering how much cash they should realistically have saved, JR says 5% is a good target.
Does Shopping Around Hurt Your Credit?
Another common concern is whether talking with multiple lenders damages your credit score.
According to JR, the answer is generally no.
“If you’re rate shopping within a reasonable time period, it typically doesn’t have a significant impact.”
He also notes that many lenders can begin with soft credit inquiries to help buyers understand their options before moving deeper into the approval process.
Pre-Qualification vs. Pre-Approval: What’s the Difference?
One area that often causes confusion is the distinction between pre-qualification and pre-approval.
“A pre-qualification may or may not involve pulling credit and verifying information,” JR explains. “A pre-approval is much more thorough and provides a clearer picture of what you’re actually qualified to purchase.”
His recommendation?
Get pre-approved before you start house hunting.
“The last thing you want is to fall in love with a house before knowing what you can comfortably afford. If you fall in love with a $400k home and find out you’re approved for $150k, no house will ever compare.”
Common Mistakes That Can Derail a Mortgage
Once buyers are under contract, there are a few mistakes JR sees repeatedly:
- Buying a new vehicle
- Opening new credit accounts
- Purchasing furniture before closing
- Making large unexplained bank deposits
- Changing jobs during the process
These actions can affect a buyer’s loan approval and create unnecessary delays.
“The smoother you can keep your finances during the loan process, the better.”
What Surprises First-Time Buyers Most?
According to JR, the answer varies.
“For some people, they’re surprised by how easy the process is. For others, they’re surprised by how much documentation is needed.”
A borrower with a straightforward W-2 job may have a relatively simple experience. Self-employed borrowers often face additional documentation requirements because lenders need a more complete picture of their income.
Programs Available for First-Time Buyers
Southern Illinois buyers may qualify for several assistance programs, including:
- Illinois Housing Development Authority (IHDA) assistance programs
- Down payment assistance options
- Local grant programs in certain counties
- VA loans for eligible veterans
JR encourages buyers to explore all available options before assuming they need a large amount of cash to purchase a home.
The Best Advice for Future Home Buyers
When asked what advice he’d give someone hoping to buy a home within the next year, JR’s answer was immediate:
“Don’t wait to get pre-approved.”
Even if you’re months away from purchasing, speaking with a lender early can uncover opportunities to improve your credit, reduce debt, and strengthen your financial position before it’s time to buy.
The earlier you start planning, the more options you’ll have when the right home comes along.
One Last Thing Buyers Should Remember
While many buyers spend countless hours worrying about interest rates, JR believes they’re often focusing on the wrong thing.
“Rates matter, but they’re not the only factor. Rent is expensive too. At the end of the day, you’re making a payment somewhere, either towards equity in your home or into the packets of a landlord.”
For buyers who are considering purchasing a home, having a conversation with a trusted lender and a knowledgeable real estate professional can provide clarity, options, and a realistic roadmap toward homeownership.
If you’re thinking about buying a home in Southern Illinois, Quinn Realty can help connect you with trusted local professionals and guide you through every step of the process.
Share This Article
For many buyers, the mortgage process can feel overwhelming. Between rising home prices, fluctuating interest rates, and conflicting information online, it’s hard to know what advice to trust.
To help answer some of the most common questions buyers have today, Quinn Realty sat down with JR Obrecht of Homestead Financial. With 23 years of experience in the mortgage industry, JR has helped thousands of buyers throughout Southern Illinois (and beyond) navigate the home financing process—from first-time homebuyers and VA borrowers to families relocating to the area.