Sassy Mortgage Rates

 

The Sassy Mortgage Loan Officer

Circa 1997

I loved that lime green suit but the big hair, not so much!

 

Interest rates on mortgage loans continue to be low, real low.

How do I know this? Well, my phone starts ringing.

Do y’all remember I used to be in the mortgage business for over twenty years? That is until the entire industry got turned upside down. I got kicked around and stressed out and decided that I had enough fun for a while.

After a couple of years of going back for a little bit as a contract employee, I then started this blog because being a blogger and mortgage loan officer, processor, account executive and underwriter is exactly the same thing! (sarcasm meter pretty high)

If I’m not in the business anymore, then why does my phone start ringing you may ask, or maybe not?

It rings because there is always a shortage of people that can handle the volume of phone calls, paperwork and know the guidelines that are required to get a loan approved. And when the rates get particularly low, I start to get texts and voicemails that hint at asking me if I want to work as a temp for them. It is very flattering and nice to know that you are wanted but I am still committed to this little blog.

Yesterday, I assisted one of my friends in seeing if they would qualify for a mortgage loan.  The rates were anywhere from 3.625 on a 30 yr. fixed mortgage to 3.00 on a 15 yr. fixed loan. I felt so smart because it had been so long since I had felt like I knew what I was doing, unlike this new world of blogging where I feel like I am winging it on a daily basis!

I wanted to share some of my tips in applying for a mortgage loan for my readers in case they want to take advantage of refinancing their house or buying a new one. The rates have been low for quite awhile but there is really no way of predicting just how much longer that may be the case.

My husband is an economist and he has advised me through the years on if I should lock loans in or not. The advice would always come with a disclaimer. There is only one certainty; that there will always be uncertainty in the financial markets. (my words, not his!)

If you suspect that you might be saving some serious money by refinancing your home, then you should wait no more. The rates are so low that you could not only save on your monthly payment but reduce the term on your mortgage AND not pay any out of pocket closing costs or add any balance to your loan amount.

The following are some of my Sassy Tips in Applying for a Mortgage Loan:

*Come prepared-There is nothing worse than taking a loan application of someone that is in a hurry to close but they forget to bring you their pay stubs or a bank account statement. If you have missing items as important as these documents, then your loan will be delayed, period. Every lender will have a list of items that you should be expected to bring or email to them. Otherwise, you will go to the back of the line!

*Know How Much You Realistically Can Afford-There is nothing like getting all excited about your dream home and realizing that there is no way in the world that you could afford it. You can easily figure out what price range of house that will fit in your budget. Bankrate.com is a website that has the average rate to use as well as the calculator to plug in your salary and debt, etc. My best advice would be to not over buy. You do not want to be “house poor.” You still need to budget for repairs and decorating. You will eventually want to take a vacation and send your kids to college too. Remember, you might think it’s your dream home going in but you don’t want it to turn into your nightmare.

*Try to Use a Local Lender-There is nothing like using a lender that knows your local market. I can’t begin to tell you how many times that I had to provide recent data on San Antonio to convince someone far away that our economy wasn’t in the tank like the rest of the country. We have been fortunate to not have the huge dips in values of properties in most of the state of Texas. The underwriters that live here know about certain types of properties that might appear quirky to some in other parts of the country. There is also something to be said for lenders that have a niche. For example, some understand VA (Veterans Administration) loans a lot more than others. It is best to ask your friends and family for recommendations. Mortgage loans are getting approved every day at a local level.

*Be Aware of Your Credit Worthiness-If you suspect that you may have some bad credit along the way, it is best to be upfront about it. Life happens and you will see some credit dings from time to time but you need to realize that the lender has to justify why they should lend you money. If you don’t paint a pretty picture in your credit report, then don’t be surprised when your loan is denied. You need to show responsibility and a willingness to pay your bills. Don’t be shocked if you have to explain in great detail a foreclosure or bankruptcy.

*Recent History is Very Important-You will notice on the application that the lender will want to gather a minimum of the most recent two year history of residence and employment. Be prepared to explain any gaps or fluctuations in income. Self-employment income is a little riskier so it is important that you have documentation or explanations of why amounts may differ. And common sense prevails so if you have a major career change with less than a 2- year history of income (like me!) then you won’t be able to use that income in qualifying!

That felt so good to be talking “mortgage speak” for a little bit! I might have to go watch a little CNBC while I’m eating lunch!

Now, go find a mortgage lender and show them some love. They are working hard to help you get into your dream home or save you some serious cash on your existing house payment!

 

Stay Sassy Y’all.