Mortgages are extremely competitive so rates and fees are generally the same with most (established, credible) lending firms. What is different lender-to-lender is the loan agent’s ability to: (1) advise properly, (2) analyze borrower and property profiles, and (3) close with no surprises. So shop to find the lender and loan agent you feel most confident can perform on these three things. Then work with that loan agent to pick a rate target you cannot or will not go above. Keep in mind; these guidelines are for those refinancing a current home. For prospective home buyers, you cannot lock a rate until you are in contract to buy a home, but once in contract, the same approach applies.
Rate Targeting- There are two reasons for the pre-approval and rate targeting tactics discussed above: (1) A rate quote that flies through the air means nothing. If a loan agent doesn't issue you written terms after obtaining a full profile on you and your home, then you haven’t received a quote you can count on. (2) Low rates are here and gone in minutes each trading day as mortgage bonds rise and fall on economic and technical trading signals. So if you don't first get pre-approved then set a rate target with a standing lock order, it's nearly impossible to hit the lows AND close with no surprises. Your loan agent also must be able to brief you daily or weekly on the market outlook, so if you're not sensing market competence from your agent, then keep shopping. A loan agent must have a strong read on what's impacting the rate market ups and downs to deliver you the best terms.
*Mainstream media is almost always off the mark on rate data and commentary. Bay to Bay Lending strives to provide accurate and realistic rate data and commentary daily. Still, the premise of this piece is to explain what a mortgage consumer must do to manage extreme rate volatility.
Marc Hutchison is a Mortgage Loan Originator at Bay to Bay Lending in Tampa, FL. He can be reached via phone at (813)-489-5566 or via email at firstname.lastname@example.org. For more information, visit Bay to Bay Lending on the web at www.baytobaylending.com.
Whether you are seeking to purchase a new home or refinancing (http://www.baytobaylending.com/