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What a difference a day makes – in the mortgage business

What a difference a day makes – in the mortgage business

By Michael Fidanza

These days, it is not uncommon to see mortgage rates below 4%, however, many buyers have seen rates over 4% when the date of the closing rolls in. What is the reason for this? Shane Force of Atlantic Home Loans has a simple explanation:

“It used to be that mortgage rates fixed once every week, so you used to have some time to think about locking in on a rate. In today’s global economy, a hiccup in the Middle East could cause a quarter-point swing.” Force adds, “Many people wait for the perfect time to lock in – hoping that rates will drop and only watch as rates creep up. If someone locks in at a higher rate and the market moves significantly, we will work with them to get a better rate.”

This is a great reason to start your home shopping with a reputable lender. There are issues that you may want to address before you even click ‘search’ on your favorite real estate site.

In regards to financing, here are some things to think about when considering purchasing a home:

– Have your documentation ready. Don’t wait until the last minute to get your bank statements, W-2’s, paystubs or income statements. You may want to have your accountant get the paperwork in order.
-If you have less than perfect credit, you may want to start working with a lender who has a program to rehabilitate your FICO score. A FICO score of under 720 starts adding hundreds of dollars per month to a payment. FHA / VA programs, first time home buyers
-First-time home buyer, FHA and VA loans can help get a would-be new homeowner.
-Sub-prime mortgages as well as low- or no-documentation loan days are all but over but money to lend is more available than it has been since 2008.
-Know how long you want to be in your new home. There may be loan options for newlyweds who are buying small to start a family and may move up in 5-7 years.orld events cause 1/4 pt —- Online mortgage companies may tempt you with low rates but lack the knowledge of the local market and will never meet with you fact-to-face and try to understand your specific situation.
-Be prepared to walk away from a bad deal…one way to avoid is to get a personal recommendation from a relative or friend who has worked with a mortgage lender before.

Be proactive! By shopping for a mortgage banker before you shop for a home, you will save yourself time, trouble and stress that are inherent in the home buying process.

Michael is a licensed realtor and can be reached at

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