Local knowledge is essential in buying and selling real estate, and the same can be true for lending and helping clients secure a mortgage.
Richard Honquest grew up in suburban Chicago before his family moved to Lake Geneva, Wisconsin, one of the most popular weekend getaway and second-home vacation destinations for Chicagoland residents. His local knowledge of both the Chicago area and southern Wisconsin is essential in his role as vice president of mortgage lending at Preferred Rate.
Understanding Lake Geneva, including its various neighborhoods and what’s important to the locals, is not something that can be faked. Honquest worked for seven years pumping gas at Gordy’s, the popular bar and restaurant on the west side of the lake where boaters often stop to refuel their tanks. After college, he worked as an IT headhunter, learning how to connect with potential clients, and eventually became a Realtor for more than 10 years.
In the last few years, Honquest and his wife wanted to plant more permanent roots in the Lake Geneva area, and a shift to lending has allowed them to do that. “I made a big push to design my life how I want it,” Honquest said.
Today, he’s considered one of the region’s top mortgage experts. Some locals call him “Rescue Rich” for his ability to problem-solve in a pinch.
Securing a mortgage for a second home often has hurdles that are slightly different from those for a mortgage on a primary residence, Honquest said. The rate is likely to be about a half-point or a full point higher on a second home. To make things more affordable, he advises clients to consider a larger down payment than they might make on a primary residence.
The second-home market remains strong in the Lake Geneva area, Honquest said. New developments are going up, and he estimates about 85% of people buying second homes in the area are from Illinois. He anticipates rates will tick down soon.
“I think we’ll see some tension let up in the fall,” he said. “People are getting off the sideline, and when the rates come down, inventory is going to change.”
That’s good news for the industry and for Honquest and Proper Rate. In July, Honquest said he was on pace to have equaled his 2023 volume by the end of the month.
“We bring a Chicago hustle to an industry that can be very dry,” Honquest said. “People get excited about buying a second home because it’s an exciting thing. They are less rate-sensitive and may not be as focused on the details. We help guide them through that.”