Are You Trying to Get the Very Best Rate?

Are you waiting 'till those rates hit the bottom before you make the call to start your refinance process?
Do you watch the paper for rates only to call on Monday to hear that rates are higher?
Have you applied for the mortgage and then learn that rates go higher before you can lock in according to that person on the phone who suckered you in by offering too low a rate?

Before I go any farther, I must warn that most people who try to the very best rate don't usually get it. Ask any stock broker about trying to time the market and you will get the same answer from every one, don't do it! That is the same in the mortgage market.

In addition, if you are trying to shop for a mortgage in this way, there are people in the mortgage industry who make a living off of people just like you. Please be careful. Read my article about how to tell if it is really a deal or is it a scam?

However, here are some insider tips on how to get the very best rate when rates are close to where you want them and you are willing to take a higher rate for taking a chance and you are working with someone you can trust to do you right.

I must note that either getting pre-approved and waiting to lock in or just plain waiting is not a very good idea if rates are rising.

Make your phone calls first
It all starts with picking a good mortgage professional who will work with you and getting pre-approved instead of waiting if you want the very best rate. Of course, you can sign up for a rate watch and take that rate. There is nothing wrong with that approach. However, when rates are fairly steady or going back and forth between rates being pre-approved can often get that next rate lower!

Make those phone calls now, if rates are close to where you would like them to be.

Make the phone calls for interviewing and pick a person that you communicate well with and is offering competitive pricing right now or of course pick a website that you have found!

That good mortgage professional is really what will make the difference.

Get your application in and the paperwork started.
The underwriting process, the appraisal and the title work are the items in the mortgage process that take the longest time.

When you already have the appraisal done, your application approved by the underwriter and the title work underway or completed you can then lock in the rate.

You don't have to wait until it's all done and you don't have to lock in as soon as it's all done. In fact, most of the banks currently will have you approved for 30-60 days.

As long as the paperwork, etc., is all done when you lock the rate you can actually be at the closing table in 3 to 4 days. When you are in this position, you can take advantage of . . .

Better Rates for Approved Borrowers
Most clients are familiar with the idea that they have to pay a fee in order to lock in a rate for an extended period of time.

Doesn't it make sense that if you can lock in for a shorter time that it works in reverse and that you should get a better deal?

It does work that way! The rates that are quoted here on my website are for 30 day lock periods, but that banks offer rates for 15 days as well.

Generally the difference between 15 and 30 days is about 1/4 of a discount point.

What can that mean to you?
Well, that 1/4 point may just be the difference between one interest rate or another when it comes time to lock. (It is not always 1/4 point=1/8% in interest rate. That varies every day.)

It also could mean the difference between paying 1 point and 3/4 of a point for the lower rate, too.

You could also use that quarter point to pay closing costs.

If you know . . .
So, if you know you are going to refinance, just not quite sure when you are going to lock in, then what are you waiting for?

Summary
If you are a shopper who has the time to wait and really wants to get the lowest rate, the method of getting pre-approved can often pay off in getting a good rate.

There are many pitfalls in trying to get a little better rate though and you must be prepared to possibly take a higher rate for trying to get a better one. The market often works that way and rates go up much faster than they ever go down.

In the long run, more often than not getting a better rate depends more on your mortgage professional than watching the market or hoping for the rates to fall.

Email me or even fill out my information request form and I will be happy to discuss the possibilities for you and whether this approach even makes sense at the time you read this article.

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