Financing A Home Is A Big Investment - Do Your Homework!

Financing a home could be the biggest investment you will ever make!  Take your time and do your homework!  Remember, this is your investment, your financing, your home.  A Mortgage Loan Officer (MLO) should work for YOU; not the other way around!
  
Be cautious when you see claims of "lowest rates", "rock bottom pricing", or "we beat any rate out there". 

Mortgage interest rates are based primarily Mortgage Backed Securities (MBS).  Short version - MBS are fixed-income investments that generate interest revenue through pools of home loan mortgages.  Mortgage loans are grouped together and sold to Fannie Mae or Freddie Mac, who in turn securitize the loans.  They are used as collateral for the bonds they issue.  Investors buy and sell these bonds. 

Generally speaking, if bonds sell low, mortgage interest rates rise.  If bonds sell high, mortgage interest rates fall.  There is a little more involved when it comes to interest rates, but that may be left for another day.

Mortgage interest rates can change several times each day.  Loan officers, banks and brokers do not set mortgage rates. 

What am I really trying to say?  Almost all lenders have access to the same pricing! 

There are dozens of lenders to choose from.  The mortgage market is very competitive.  Although lenders may get their money from the same place, each lender may structure rates differently due to various factors such as overhead and profit expectations.  So, each bank may offer slightly different rates and pricing even though they may have access to the same money other banks do. 

A broker may have access to certain lenders with mortgage rates generally unavailable to the public (wholesale).  If you choose a broker that can only do business with one or two lenders you have limited your options.  Each mortgage broker is different and can do business with a different amount of lenders.    

It really comes down to your Mortgage Loan Officer(MLO).  Honesty, integrity, being upfront about your situation and disclosing everything while walking you through the process is very important!  

Ask questions, do your homework.  Take the time to ensure your MLO is up front, honest and has the ability to get you the right rate at the right price!

Please feel free to call me personally with any questions you have.

 

 

Rich Conley
Mortgage Loan Officer
Main 949.472.4228
Mobile 951.751.2105
Fax 951.268.9156
www.RichConley.com

 

 

If you would like additional information regarding mortgage services please visit my website or call me directly.

 home loans done right...