Categories
Mortgage Process

What Determines a Borrower’s Mortgage Rate?

Here’s a follow-up to my blog What Makes Mortgage Rates Go Up and Down. Now let’s talk about What Determines a Borrower’s Mortgage Interest Rate?

As we discussed, many factors determine the interest rate on a particular mortgage. A Interest Rates Will Riseborrower’s rate will reflect general conditions in the financial markets, the type of mortgage they chose, the lenders assessment of the risk involved in your financial situation and, of course your credit history.
That’s why a quick “rate quote” over the phone or a rate you saw online or pulled from a newspaper advertisement may not reflect the interest rate you will finally be offered once a lender has evaluated your specific circumstances as presented in your mortgage application.

Risk Matters
When lending money to finance a home purchase, lenders and their investors seriously consider the risk that these borrowers may not repay the money loaned to them. For example: the larger the down payment, the greater the investment in the property and the lower the perceived risk. Therefore, the lower the mortgage interest rate. Vice versa: The smaller the down payment, the less equity in the home and the greater the risk of default. The higher the risk, the higher the interest rate

When someone calls me inquiring about interest rates, I tell them, “I don’t sell interest rates.” I go on to explain, “There is no “one low mortgage interest rate.” Rates fluctuate daily-even hourly-with movements in the financial markets. A borrower’s final interest rate is determined on the day it is “locked” by an assessment of:FHA MI
•  Mortgage type
•  Mortgage term
•  Loan amount
•  Type of property
•  Credit Score
•  Debt-to-Income Ratio
•  Amount of cash the borrower will contribute to the down payment, closing costs and points.
I might tell them, “Today, at noon on July 2, 2014, it is conceivable for a buyer want to buy a single-family home selling for up to $400,000 with a conventional 30 year fixed rate mortgage has a credit score greater than 740, is able to make a 20% down payment and is willing to pay all closing costs and about 2 points to get a rate in the 4.00% range. If any of these criteria do not fit your situation, then the rate will be higher. How does that sound to you?”

Bottom Line
In the final analysis, it is the borrower’s unique personal situation that determines his/her final mortgage interest rate. His financial position will help him decide which mortgage program right for him and what interest rate scenario is right for his family budget, how big a house he can buy and how large a mortgage he can afford to repay. My job was to guide you to that decision.

Do not hesitate to reach out to me with any questions or concerns you may have about how your situation might impact your mortgage interest rate. I’m here to help.

Categories
Mortgage Process

Why Should I Get Mortgage Pre-Approval?

Few experiences are more frustrating than falling in love with a home that’s for sale and then discovering you can’t afford to buy it. The majority of First-Time Home Buyers need to finance their home purchase.  A consultation with a Mortgage Broker is a crucial step in the home buying process because you need to understand your purchasing power before you begin to look at homes.

What Is a Mortgage Pre-Approval?
Most Lenders will offer borrowers a Mortgage Pre-Qualification Letter or a Mortgage Pre-Approval Letter. But most REALTORS® recommend that you get Mortgage Pre-Approval before shopping for a home. A Pre-Qualification letter will state the amount a lender thinks you can borrow based on your income and your credit profile without any actual documentation. Mortgage lending standards have tightened since the housing crisis and all loans now require full documentation and verification of income and assets. Astute sellers know this and will only accept an offer from a buyer with a full Mortgage Pre-Approval letter that’s based on verified information.
Sellers aren’t the only ones who benefit from you obtaining a Mortgage Pre-Approval. You’re better off with Mortgage Pre-Approval for two reasons:

  • First, you’ll have gone through the credit check and paperwork requirements for a mortgage, so you’ll have clarity about your ability to finalize a home purchase. If the Application Checklistlender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.

  • Second, since your documentation will already be in place, a Mortgage Pre-Approval based on everything other than the actual value of the home you’ll purchase will speed up the process once you make an offer.

How to Find the Right Mortgage Broker
Your REALTOR® might be able to recommend a Mortgage Broker for you to interview. You can also ask friends and colleagues for someone they trust. You should check a Loan Officer’s NMLSNMLS license and read reviews online to be sure you’re working with someone reliable. As a First-Time Home Buyer, you should look for someone experienced with First-Time Home Buyer needs, one help you identify those loan options that fit your particular situation.

What to Expect From Your Broker
The best Mortgage Brokers take a collaborative approach with borrowers and take the time to explain all your loan options. When you feel your comfort level is right, your broker will check your credit report. You should expect feedback about ways to improve your credit profile that might increase your loan approval potential and perhaps improve the terms of your mortgage. You should expect recommendations for how to handle your money between the time you apply for a loan and settlement day. Your lender should provide advice about when to lock in your loan rate and discuss the pros and cons of various loan programs.

What Your Mortgage Broker Expects From You
Your Mortgage Broker needs you to be honest about your finances and responsive to all requests for additional information. They may seem burdensome and unimportant to you, but it is important to the mortgage approval process. The more cooperative you are, the easier the loan process will be.
Your Mortgage Broker will submit your application file to your lender of choice. The lender will analyze your documentation and generate a Mortgage Pre-Approval Letter based on your debt-to-income ratio and credit score.  However, you should also consider your budget and your own comfort level with a payment. There’s no need to borrow the maximum amount you qualify for, particularly if you know you plan to spend money on items that don’t show up on your credit report such saving for a college education(s), a new car down the road, or vacations.

Loan ApplicationYour careful planning and preservation of your emergency fund are important for responsible, long-term homeownership. In today’s dynamic housing market, First-Time Home Buyers can own their own home when they demonstrate the financial responsibility to deserve one.

Categories
Mortgage Process

Why Should I Get Mortgage Pre-Approval?

Few experiences are more frustrating than falling in love with a home that’s for sale and then discovering you can’t afford to buy it. The majority of First-Time Home Buyers need to finance their home purchase.  A consultation with a Mortgage Broker is a crucial step in the home buying process because you need to understand your purchasing power before you begin to look at homes.

What Is a Mortgage Pre-Approval?
Most Lenders will offer borrowers a Mortgage Pre-Qualification Letter or a Mortgage Pre-Approval Letter. But most REALTORS® recommend that you get Mortgage Pre-Approval before shopping for a home. A Pre-Qualification letter will state the amount a lender thinks you can borrow based on your income and your credit profile without any actual documentation. Mortgage lending standards have tightened since the housing crisis and all loans now require full documentation and verification of income and assets. Astute sellers know this and will only accept an offer from a buyer with a full Mortgage Pre-Approval letter that’s based on verified information.
Sellers aren’t the only ones who benefit from you obtaining a Mortgage Pre-Approval. You’re better off with Mortgage Pre-Approval for two reasons:

  • First, you’ll have gone through the credit check and paperwork requirements for a mortgage, so you’ll have clarity about your ability to finalize a home purchase. If the Application Checklistlender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.

  • Second, since your documentation will already be in place, a Mortgage Pre-Approval based on everything other than the actual value of the home you’ll purchase will speed up the process once you make an offer.

How to Find the Right Mortgage Broker
Your REALTOR® might be able to recommend a Mortgage Broker for you to interview. You can also ask friends and colleagues for someone they trust. You should check a Loan Officer’s NMLSNMLS license and read reviews online to be sure you’re working with someone reliable. As a First-Time Home Buyer, you should look for someone experienced with First-Time Home Buyer needs, one help you identify those loan options that fit your particular situation.

What to Expect From Your Broker
The best Mortgage Brokers take a collaborative approach with borrowers and take the time to explain all your loan options. When you feel your comfort level is right, your broker will check your credit report. You should expect feedback about ways to improve your credit profile that might increase your loan approval potential and perhaps improve the terms of your mortgage. You should expect recommendations for how to handle your money between the time you apply for a loan and settlement day. Your lender should provide advice about when to lock in your loan rate and discuss the pros and cons of various loan programs.

What Your Mortgage Broker Expects From You
Your Mortgage Broker needs you to be honest about your finances and responsive to all requests for additional information. They may seem burdensome and unimportant to you, but it is important to the mortgage approval process. The more cooperative you are, the easier the loan process will be.
Your Mortgage Broker will submit your application file to your lender of choice. The lender will analyze your documentation and generate a Mortgage Pre-Approval Letter based on your debt-to-income ratio and credit score.  However, you should also consider your budget and your own comfort level with a payment. There’s no need to borrow the maximum amount you qualify for, particularly if you know you plan to spend money on items that don’t show up on your credit report such saving for a college education(s), a new car down the road, or vacations.

Loan ApplicationYour careful planning and preservation of your emergency fund are important for responsible, long-term homeownership. In today’s dynamic housing market, First-Time Home Buyers can own their own home when they demonstrate the financial responsibility to deserve one.

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Uncategorized

CT Mortgage Broker With A Unique Advantage

I’m a Mortgage Broker with a Unique Advantage in the world of Mortgage Finance. The relationships I have formed with trusted lenders over the years means that I can get loans done quicker and closed on time when others may not be able to accomplish anything at all.
The majority of the dozen or so lenders I work with have Account Reps. When these Reps are really good at what they do, and you do a lot of volume with them, they will do everything possible to keep me and my clients happy. The #1 reason … the happier I am with their service, the more loans I will send their way… and the more money they will make!

Every Mortgage Account Rep is always vying for more business. The reason is obvious… they cooperationwant to make more money. Over time, true relationships are formed. I have done business with many of these reps for years and strong bonds have been formed. I know them professionally and they know how much I love my dog.

I wouldn’t try to count the cups of coffee I’ve shared with these Reps. Their message is always the same …When I have a problem with one of my loans, call them ASAP so they can expedite the problem. They always know…if they fix issues, I can deliver on my promise to my clients and that means more future business they’ve earned and deserve.

What Does This Mean To You?
 The relationships that I’ve formed over my 40 years of Mortgage Approvedfinancial service experience means that loans can get done quicker and, when glitches arise, loans can still get closed when the big box banks turn their customers out to the wolves.   

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Market Updates Uncategorized

Luck O’the Irish

gold 4

May your blessings outnumber the shamrocks that grow,

May trouble avoid you wherever you may go.

May you pockets be heavy and your heart be light,

And may Good Luck pursue you each morning and night.

Happy St. Patrick’s Day

*************************


It feels like you have the Luck O’ the Irish when you work with a professional you can really trust.
One who will give honest answers to your concerns.
If you, or your friends, are ever in need of a professional mortgage advisor,
do not hesitate to give me a call. Licensed in all 6 New England states, NY & FL too. I’m here to help.

Categories
Market Updates

Banks To Layoff Thousands! What It Means To You.

News FlashJPMorgan Chase plans 8,000 layoffs in 2014 on reports of double-digit declines in their mortgage and retail banking business. That’s in addition to 16,500 layoffs in those divisions last year. Other banks expected to make similar announcements soon.What does that mean to you?
1.      Rising Interest Rates. JPMorgan and other big-box banks expect interest rates to continue to rise in 2014. With higher rates, fewer Americans are walkingRising Home Prices through their doors seeking to refinance their mortgage. They expect that trend to continue.
2.     Service. Fewer loan officers in the branches means home buyers will be directed to a sales clerk at an 800#. Purchase or Refinance…borrowers will not be able to talk face-to-face with some about the most significant transaction in their financial lives.
3.     Products. As the level of service declines, the range  and complexity of the product line has to decrease also to adapt to the experience of the sales force.
So I ask …Do you want to be a faceless #, Or…do you want to work with a Mortgage Broker who will continue to meet up close and personal with his clients? I will bring 40 years of financial services experience to the table along with direct relationships with over a dozen trusted lenders who offer a wide range of mortgage options.
I have the keys to help families live comfortably and financially secure in their own home; and I will uphold my promise to ‘”Do my best to provide the right mortgage solution at the right rate to meet a family’s unique situation.”

Categories
Market Updates

Banks To Layoff Thousands! What It Means To You.

News FlashJPMorgan Chase plans 8,000 layoffs in 2014 on reports of double-digit declines in their mortgage and retail banking business. That’s in addition to 16,500 layoffs in those divisions last year. Other banks expected to make similar announcements soon.What does that mean to you?
1.      Rising Interest Rates. JPMorgan and other big-box banks expect interest rates to continue to rise in 2014. With higher rates, fewer Americans are walkingRising Home Prices through their doors seeking to refinance their mortgage. They expect that trend to continue.
2.     Service. Fewer loan officers in the branches means home buyers will be directed to a sales clerk at an 800#. Purchase or Refinance…borrowers will not be able to talk face-to-face with some about the most significant transaction in their financial lives.
3.     Products. As the level of service declines, the range  and complexity of the product line has to decrease also to adapt to the experience of the sales force.
So I ask …Do you want to be a faceless #, Or…do you want to work with a Mortgage Broker who will continue to meet up close and personal with his clients? I will bring 40 years of financial services experience to the table along with direct relationships with over a dozen trusted lenders who offer a wide range of mortgage options.
I have the keys to help families live comfortably and financially secure in their own home; and I will uphold my promise to ‘”Do my best to provide the right mortgage solution at the right rate to meet a family’s unique situation.”

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Market Updates Uncategorized

When Should You Fire Your Real Estate Agent?

 You're Fired“Not all Real Estate agents are created equal. In today’s tumultuous real estate market, clients need to partner with an agent who works tirelessly to get them the best deal. Here’s why a client might want to fire their agent.”
1.  He gives away too much information.
2. He doesn’t have time for you.
3. He’s too  pushy.
4. He insists that you use affiliates.
5. He’s a part-time agent.
6. He is unethical.
7. He doesn’t listen.
A final word of advice: Once you’ve decided to discontinue your relationship with your agent, make sure to get a dissolution notice in writing. This keeps the agent from doing any work on your behalf after you’ve moved on and charging you fees or commissions.

http://www.pr.com/press-release/537286

Categories
Market Updates Uncategorized

When Should You Fire Your Real Estate Agent?

 You're Fired“Not all Real Estate agents are created equal. In today’s tumultuous real estate market, clients need to partner with an agent who works tirelessly to get them the best deal. Here’s why a client might want to fire their agent.”
1.  He gives away too much information.
2. He doesn’t have time for you.
3. He’s too  pushy.
4. He insists that you use affiliates.
5. He’s a part-time agent.
6. He is unethical.
7. He doesn’t listen.
A final word of advice: Once you’ve decided to discontinue your relationship with your agent, make sure to get a dissolution notice in writing. This keeps the agent from doing any work on your behalf after you’ve moved on and charging you fees or commissions.

http://www.pr.com/press-release/537286

Categories
Mortgage Process

I Like Mortgage Puzzles

In the past month, I have received 3 First Home Buyer referrals from a mortgage officer at a small savings bank. Over the years, he has referredreferral numerous bank customers to me when the applicant’s situation didn’t quite fit the bank’s mortgage parameters. Rather than just saying “no” to his customers, we have worked together to preserve the bank’s small town reputation by offering alternative mortgage solutions that really work.

During our last conversation, the loan officer apologized for only referring the tougher transactions to me. He hoped I understood why he couldn’t send me some easier ones. My answer was “Yes! I like Puzzles!”I told him I was flattered that the bank thought so much of my experience, empathy and resources as to share his customers with me for help. “I don’t mind being challenged,” I told him.

house puzzleEvery mortgage application is a puzzle. My clients are real people, with real concerns and busy lives. They need help putting the pieces of the puzzle together. I focus on finding those solutions. And when the pieces do come together to form a pretty picture, they are happy and I get a warm fuzzy feeling knowing I did a good job.

Mortgage Approved

I think one of the best compliments you can give someone is a problem; that just means they think enough of you to help them solve it.