Are You A Frustrated Rate Shopper?

With the recent drop in rates we have really seen the phone calls pick up. Shopper's are out in full force calling around for the best deal. Lately I have noticed a slight bit of frustration in some of these people. This stems from the fact that 4.5% rates have been plastered all over the Internet and print media. These callers want this rate and they are finding out that it isn't available! That's right, currently this rate is not available. Actually, for the most part it never was. This rate is what the government set as a goal. By pumping the MBS market with money, they hoped the result would be reduced rates. It did work for a short time and rates dropped in the 4's. Many local or regional banks have taken advantage of this in the short term and some customers found some luck going this route. The problem is that there is a very select few that can obtain the super low rates. They then tell their friends and family and the word spreads! When rates hit their low point in mid December, lenders were flooded with applications. I mean absolutely swamped. In some cases it has taken a full month to just get a loan commitment from them. To help fight off this problem lenders have actually raised rates to deter us from sending loans to them! This will allow them to catch up. This only compounds the problem. Rates never got as low for the masses as people thought they did and now lenders aren't even offering out the good rates they do have. Confused? Wasn't the point to keep rates low? Well these are questions these callers and even people in this profession are asking. Rates will turn around at some point. We hope sooner rather than later. Just remain patient. Also, keep a few things in mind. First, don't get greedy. If you have a $100,000 loan and you are holding out for an extra .125% or .25% lower rate, it is probably a bad idea. This will only save a few extra dollars per month, but you run the risk of rates spiking and you lose the rate you had in your grasp! Second, you should start the application process with a lender you trust. If your file is in underwriting we can lock at a moments notice when the market turns. If you haven't started the process you run the risk of us not being able to lock in time. Not to mention you get a head start on the longer underwriting times. Lastly, consider Flat Branch Mortgage. At Flat Branch we do a couple things far better than our competition. We are unique in that we have a live feed of the bond market and are able to make our own float or lock decisions. We don't rely on some Internet service to tell us when to lock or float. We can save you money this way! We also have in house underwriting. Not every single loan can be underwritten in house, but the majority can. What does this mean for you or for your clients? This means we have total control of the file and we don't have to ship it off and be subject to the ridiculously slow turn times at other lenders! This means faster closings and ultimately in some cases better pricing. How is that possible? This is because we don't have to lock so far out to preserve your rate in order to accommodate the turn times brokering requires right now!
Please remember, rate is important but it is not everything. Especially if you are with a lender that locks you in and has to extend it several times before you close. This ultimately causes you stress and costs money.

So if you are a frustrated shopper, we understand. We are frustrated as well. When you call, we truly want to offer you the best. By this I mean the best rate and the best service. We can do this in the service department, hands down! When it comes to rate we are at the mercy of what the market gives us. If it is possible, we will offer it to you! We want your business and we ask that you give us a shot. We realize we will not be the cheapest every single time, but if you present us a competing offer we will do our best to match or beat it!

Brought to you by:
Flat Branch Mortgage, Inc.
Posted By: Eric Hemmer