One of the most common questions (and usually the first question) I
get asked after I identify myself as a mortgage broker is, “What is your
mortgage rate?”.
It’s kind of like going into a nice restaurant and asking the hostess,
“What is the price for dinner?”.
The answer is of course, “It depends”. In the case of the dinner, it depends on what you are going to eat, how many people are eating, are you going to drink water or wine, etc.
In the case of a mortgage, it depends on the type of property, the occupancy of the property, the credit scores of the borrowers, the debt-to-income ratio, the loan to value, the income and employment status of the borrowers, the amount of assets available, the purpose of the mortgage, etc, etc, etc.
All of these parameters have an effect on the mortgage rate that can be offered.
So, if you are shopping around for a mortgage, be prepared to answer some
questions so that you will be quoted an accurate rate.
In the current mortgage market, which is extremely volatile, mortgage rates can and do change two or three times a day. If you are getting rate quotes over a period of a week you may not be able to compare apples to apples.
After you have given a loan officer your information, always ask for a Good Faith
Estimate. You will be able to compare offers more easily. If the offers are all
comparable, choose the loan officer who has given you the most knowledgeable,
accurate and trustworthy information.
Posted by Terry Brunner. Terry is a Senior Loan Officer. You can reach Terry at
(877) 627-9211 x150 or tbrunner@horizonfinancial.org
