Anybody who has even considered buying a new home needs to act now!. With 30 year fixed rates hovering in the mid 3's and 15 year rates even lower, this is prime buying opportunity. At the risk of sounding like a used car salesman, these rates will not last and we will not see these low rates again in the foreseeable future.
In an earlier blog, I stated that the average buyer does not ask the right questions of their potential lender. They ask about the rates and everybody's rates will be about the same. The difference is the closing fees they charge. This can vary by thousands.
Some unscrupulous lenders offer rates far below the market. You can get these rates, but you pay a fortune in prepaid interest to get them. Why would you do that? You would have to keep the loan for 12 years to get your money back in reduced payments.
Ask the question: "Do you have in house underwriters?". This is important, because, if they have to send it to China for underwriting, it will not close on time.
The worst of all are the Internet lenders. I want my buyers to choose a local lender, so that if the process faulters, you can look the guy in the face and find out what is wrong. You don't have to spend an hour on hold listening to elevator music, while they find someone who knows what's going on.
Buyers, it's time to move, but consult your real estate professionals as to the proper direction.
Thanks for reading, Steve Houck