Don't let rising rates catch you off guard… here is what you need to know and how to avoid costly unknowns…Verify my mortgage eligibility (Feb 29th, 2024)
Yes- rates have been steeply rising since mid-January this year. This was not a surprise for educated mortgage professionals but may have caught many by surprise that are newer to the industry as well as home shoppers, or homeowners considering refinance.
What does this mean and what do you do?
1. Don't make the mistake of just shopping for the lowest rate, especially online. Most often this will result in much higher costs in discount points OR more of a bargain basement type of lender who could put your entire process in jeopardy. There are countless experiences of closing delays, bait and switch, even litigation for shortcuts in qualifying that put you the borrower at risk. Red flags for these places are super high tech, low human touch "low rate-online-call center" types of mortgage operations, and often missing fees on their initial estimates. Before you know it, you are down the assembly line of scripted call center "headset jockies" that perform more like an order taker than a strategic advisor and educator.Verify my mortgage eligibility (Feb 29th, 2024)
2. Don't blindly accept a higher rate because it comes from a local office or outside the mortgage model explained the first point. This goes for fees as well! As rates increase some companies have to build in cost in other ways like charging processing fees, docs prep fees or other types of loan origination fees that help them quote a lower rate. You likely won't know if they don't provide full transparency, or are not asking about "section A- loan costs". It's a great opportunity to be working with an Independent Broker who can shop many wholesale options for you because they typically have less overhead costs, transparency in commissions and fees resulting in better options for you the borrower.
3. Ensure that your Advisor is planning with you for the future, not just making a loan for today. The future has potential that should also be considered in today's planning. Most homeowners do not keep their same mortgage loan for a full 30yrs, but are obtaining a 30 yr fixed rate mortgage. How you structure your loan should consider the future that is related to both the industry trajectory AND your potential plans.
4. Don't forgo the idea of a refinance. Just because a refinance may not lower your mortgage rate doesn't mean there won't be a benefit. There are multiple wise options for a refinance that stretch beyond lowering rate.Verify my mortgage eligibility (Feb 29th, 2024)
Your loan needs, structure and strategy are as unique as your fingerprint. Your guidance, education and empowerment during the process should be the same.
Want to know more? Let's Work Together!
Alysha Boles- Mortgage Strategy Advisor for the Navigate Lending Team is a licensed loan officer serving California and Texas personally and in multiple states nationwide as a team. www.advisoralysha.comShow me today's rates (Feb 29th, 2024)