Low rates and the buyer, the lender and the real estate agent

Although the interest rates are historically low, the market is very volatile. When prospective buyers are going after the rates that were yesterday's news they don't understand why that rate is no longer available. It can change from hour to hour, minute by minute.

The buyer needs to have identified the property they will be closing on order to be able to "lock" into the rate and have a loan application in process. This is where the partnership of the Realtor®, the mortgage professional and the purchaser comes in. The time to start looking is now and getting your loan in order now. I find one of the biggest mistakes the buyer makes is continually shopping lenders after they have gone under contract and losing out on capturing a rate.

The inventory level is still high offering a lot of options and great value. Work with your lender from the start to make sure you are qualified for the home you want and the home is qualified for you. There are a lot of loan products available but many of them have very particular regulations especially on condominiums such as owner occupancy and rules and conditions of the association. This is where the team work comes in to make sure you can close on your new home.

Frank Sommese of American Bank and Trust says of the low rates:

30 year fixed rates fell under 5% for a short time on Thursday, December 18^th, 2008. There is a good chance we will test these levels again. I recommend that the borrower start the loan process in anticipation of falling rates. The ability to lock a rate and quickly close on the loan will guarantee a better rate.

For more information contact Frank Sommese at 312 388-2176 or fsommese@ambankqc.com