Under Promise and Over Deliver!

I am sure we have all heard the expression "Under Promise and Over Deliver". It could never be more important that right now. With rates dropping recently and jumping back and forth, many people have come out of the woodwork to refinance or purchase a home. This is great news for the mortgage and real estate market, but borrowers need to be on their toes. If you have paid any attention you can see the market is extremely volatile. This means when you are quoted a rate you need to confirm the following:

1. Is the rate realistic with the current day's market?
2. What are your closing costs?
3. Is this rate locked or floating?
4. What is the current market projected to do leading up to your closing?

These are all very important details. We are finding that many lenders are quoting rates based on what they think they can get in the near future or telling the customer what they want to hear! This is setting yourself up for failure. Now it is common to start a refinance at a rate on a given day and then have the market turn before the loan can be locked. In this case the borrower just needs to be made aware that the market must be carefully monitored so any sudden rate drop can be capitalized on! Either way I think you get the point. If a lender is up front and quotes a rate, it is always best to set the appropriate expectations. By doing this you don't put yourself in an awkward position and the borrower is taken care of in the proper way! Why put yourself in a position where you do all the work and the deal blows up at closing as a result of you telling a borrower they will get x when they actually can only get y!

Brought to you by:

Professional Mortgage Group, Inc.

Your Columbia, MO Mortgage Broker