Financing Solutions with David Reed

The Best time to Lock in Your Mortgage Rate

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"What do you think about rates ... should I lock in now or wait to see if they fall further?" Think I've been asked that a time or two over the past 18 years? You better believe it.  It's a good question-one that goes through every single buyer's head at some stage. 

A quoted interest rate is no good unless you've confirmed, in writing, that your loan is indeed "locked," or guaranteed for a designated period of time. You need to be proactive with your locked rate as well and don't assume that your loan officer already locked you in. In fact, your loan officer shouldn't lock in your rate without your specific instructions. If it was locked in and rates went down you'd be pretty mad, wouldn't you?

While neither real estate agents nor loan officers are in the business of predicting the future, it's still possible to make a prudent choice in the face of uncertainty. Would you rather lock in your rate and watch rates fall or not lock in your rate and see rates go up?

If you decided to lock and rates go down, you've secured the market rate that you were happy with. But if rates went up and you didn't lock, you'd be paying for that mistake for the rest of the loan.

There is an even worse possible scenario: After not locking in your rate, rates shoot up and you no longer qualify for the loan. So it's important to ask yourself:  "Which way would I rather be wrong?"

If you are comfortable with the rate you've been quoted, talk to your real estate agent about the possible consequences of waiting to lock it in.

Looking to buy or sell, please visit my website at: http://www.ClickThisHome.com. Search for Michigan homes without the hassle. Save your searches for easy use and save your favorite homes for future reference.

Lisa Bender, Keller Williams Realty - www.ClickThisHome.com - Direct: 810-534-2058 - Email: lisabender@kw.com

Bruce Hardie is an excellent trainer and hugely successful, active agent out of Spokane, WA. This is sure to help agents at any stage in this buyers market. It's going to be held in Livonia, MI at Laurel Manor and agents from any company are welcome. If anyone is interested in attending, please let me know and I will get you on the list. I've been told he shares a lot of his marketing pieces as well. Give me a call or send me an email. He's also training in 4 other locations around the US for those out side of the Detroit Metro area. I'd be happy to get you other location information as well.

Many people are having difficulty with their mortgages for one reason or another. We all have heard about Michigan's forecloures rates as well as the rest of the US. Many of us are banging our heads against the wall trying to talk to someone at their mortgage company. It can be mind numbing! I can empathize with what you're going through as I help a lot of people with short sales. So, I talk to these banks on a daily basis. Some mortgage companies are better than others. Here's a few tips to hopefully help you when dealing with your lender:

• Document all phone calls, who you talked to, date and time and the nature of the conversation and the result.
• Don't be afraid to ask for their Manager if you feel you are not getting the answers you need.
• ALWAYS be polite ... kill them will kindness!
• Ask questions to understand their process.
• Create a dialogue sooner than later. DO NOT wait until you are facing the sheriff sale or worse when your redemption period has expired.

Additional things you must be doing:

• Talk to a mortgage broker, they can help assist you in possibly working out a loan modification to help make your payments more managable.
• Don't bury your head in the sand, this problem will NOT go away.
• Always communicate with the lender and start the dialogue early. (I said this one already ... YES, it's that imoprtant!!!!!)
• If you have to sell your home, but owe more than it's worth, consult with a few different Realtors who have had experiene in dealing with short sales. Get it on the market NOW.

If you are still not getting anywhere with your lender, you can always call the Attorney General. I have been successful several times in getting the names of contacts who can HELP me. Who are decision makers who can make things happen. If it's Fannie Mae or Freddie Mac there is always the Office of Federal Housing Oversight (www.ofheo.gov). I just recently was sucuessful in negotiating a buy back for a previous owner who lost her home and the redemption period had expired.

Don't give up and don't hesitate to seek professional assistance from a mortgage professional or real estate professional.

Feel free to visit my website at www.ClickThisHome.com and email if you need any assistance or more information.