I advised my clients to lock if they could. I had three that were ready to lock.
Talk about Volatility.
Today interest rates are back up and don't look like they'll be dipping again anytime soon.
For the rate shoppers out there. If you didn't have your Ducks in a Row - you lost.
What exactly are those Ducks? Good question.
- a Complete Mortgage Loan Application including all requested documentation.
- an Underwriters Conditional Loan Approval
- The ability to meet those Conditions in a timely manner
That's it. Seems pretty simple right?
But that's also why you cannot pick up the phone and shop for rates.
Without covering items 1 thru 3 above, the rate quote you hear on the phone is either from a Liar or a Knucklehead (thanks Jack)
You must work with a True Mortgage Professional. One that can properly advise you to lock or NOT to lock at any given point. One that has real time information on what is happening in the marketplace.
Speaking of locks - you did get that lock verification in writing didn't you?
Here's the proof in real dollars.
Yesterday I ran a purchase scenario for a potential client. They were not ready to lock.
Had they locked they would have been able to buy $33,000 more home. Same loan, a Conforming 30 Year Fixed.
Not for the same monthly Principal and Interest Payment - but LESS!
Yes, that's $33,000 for nothing.
If you extend that out 30 years, at an annual appreciation rate of 7.2% (go ahead and ask why) that same $33,000 becomes $265,679.17.
Is it worth working with a True Mortgage Professional yet?
As my friend Brian Brady says, "If you thought dealing with a professional was expensive, wait until you find out how much dealing with an amateur costs!"
You mortgage guy types are so brainy.
Mike, good information! There is such a thing as being too cautious....I think some people are afraid they will miss out on a better rate down the road...or a lower sales price..and they end up losing out on the best rate.
Now, how to make them believe you?
I agree with Alisa. I had one client the mortgage broker and I were begging him to lock...He was so convinced that rates were going to keep going down.
It is so confusing to the consumer when the fed cuts rates.
Hey Mike, that is amaing..and I am really liking that video. Exellent wat to get a point across since writing sometimes just doesn't cut it.
Mike,
You are the man! It is true that dealing with an amateur in almost any situation is very expensive in the long run.
Hi Mike - from your lips (fingers) to every buyer's ears (eyes) out there even giving passing thought to buying. This post shows in very clear black and white the WHY behind working with a true professional makes such a HUGE difference.
Ann
C.E.G. - Nah, but thanks.
Alisa - Don't know. Got any ideas?
Melina - "It is so confusing to the consumer when the fed cuts rates" so very true!
Stephanie - Thanks!
Cynthia - Much to generous of you.
Ann - Thanks!
Anyone else notice I have 6 lovely ladies comment and NO GUYS? I did!
Morning Mike - wonder if it could be that lovely ladies love lenders like....like, like MIKE!! ;-))
Ann
By the way, I'm still cool because I can still see "IT"!!
;-) Ann
Mike,
This is good! And why is it not featured?!
Mike in Tucson
Edit: I came back to bookmark it. You have a way with words, Mike.
I like Mike. I think Mike is brainy. Locking loans is an art and a skill and one of the most important things a mortgage broker can do for a client. One of the hidden points in this post is how much money you can save by trusting that your mortgage broker knows when to lock.
Another great post, Mike....and Brian Brady is so right (as usual)
I hope rates climb just a bit more in the future. It will motivate these guys on the fence to get off the fence, lock and shop.
So much truth in one post. And I like Brian's saying. I haven't heard that before, but it makes a lot of sense!
Mike,
Great post, what site/software do you use for that video marketing?
Thanks,
Bryan