Mike Mueller, Social Media.ist: May 2008

It Takes Just 3 Words to Stop the Rate Lock Scam!

I know... "What Rate Lock Scam? Never heard of it."

The other day I gave you the power to determine if you were being Bait and Switched on your mortgage loan. There was a lot to digest there.

Yesterday, I gave you the ability to look up a Loan Officer and determine if they are currently licensed in the state of California, for how long, and if they have any violations recorded against them.

FEELING EMPOWERED YET?

After today, you'll be able to understand a Rate Lock, why it's important, and know the one incredible scam nobody knows about.

You'll also have the power to defeat that scam with just 3 little words.

ARE YOU READY?

The Rate Lock Scam

That great rate you were quoted, was it based on the best day we had last week?
Is it for a 5 or 10 day lock period?

Did you know there are different rates for different lock periods?
The best rates are for the shortest rate lock periods.
The catch is that you must be able to close by the end of that lock.
How do you know your Rate is Locked?

Some Loan Officers will say you are locked, hoping to lock you later if rates go down and pocket the difference themselves!

Even if rates stay the same,
the lock period will be shorter and they'll still pocket the difference.

If rates go up, you lose.
The Loan Officer will come up with some excuse as to why your rate increased.
This is called the Pocket Lock Scam, it happens every day and the public never knows!

Are You Locked?

or Do You Just Think You Are?

Demand a Written Lock Confirmation

When a Loan is Locked

it's locked for a particular program,

at a particular rate,

for a particular loan amount,

for a particular period in time

When the lock is placed a Written Lock Confirmation is sent to the Loan Officer with all these details and much more. Demand a copy of this.

DO NOT BE FOOLED!

Do not settle with a letter from your Loan Officer or Broker.
The Written Lock Confirmation will come from the Lender's Lock Desk.

If you get any hesitation at all - Walk Away!
If you see any hint of White-Out or cut and paste - RUN AWAY!

Are you ready to Lock Your Loan ?
Mike@PatagoniaFinance.com or (925) 288-9977 Ext 104

Related Posts: The 7 Deadliest Mortgage Mistakes

Get a
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

4 comments • Mike Mueller • May 29 2008 07:50AM

B A L A N C E

Last week I was in beautiful Victoria, BC.

My daughter and her High School Marching Band were there to march in the Victoria Day Parade. They even made the front page of the local paper!

My wife and I were there to celebrate the beginning of 20 years of Marriage in the place we honeymooned.

While we were there we met so many very nice people and saw so many beautiful things.

You might know, I'm a hockey fanatic.

The Stanley Cup is named after Lord Stanley. He also happens to have a park in Vancouver aptly called Stanley Park. We had to stop by and say Hi.

I also was able to go by GM Place, the stadium of the Vancouver Canucks. The truth is they have never been one of my favorite teams. Can you tell?

We had lunch in a cute little tea house up island called Adrienne's.

Who would have guessed it was owned and run by the parents of one of my favorite NHL Goal Tenders of all times, Ron Hextall! Ron wasn't there but I did manage to get behind the cash register for a photo.

On the way back we had to stop off at Timmy's place. No, I wasn't hungry for a Timbit.

Wait - did you know Tim Horton was a NHL Hockey Player? Now you do!

Hey, I met another famous Ron along the way...

While touring the gorgeous Butchart Gardens we were able to recreate a picture my wife and I took almost 20 years ago, this time with a small addition.

It was a beautiful time.

On the last day, my daughter surprised me with a little something.

A small pocket reminder in pewter.

You'll recognize this as the symbol Yin Yang. Good vs Evil. Light and Dark. Chose your own label. My interpretation is simply, Balance. In everything there is balance.

I was reminded of that balance on our return home.

One of our best friends live in Colorado.

Windsor, CO to be exact.

This is a video of her neighborhood.

She wasn't hurt. Her family is ok.

Her toddler son was in the Day Care but came out ok (the restaurant next door was leveled).

Right now we're looking to help those that didn't.

Balance...

Get a
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

10 comments • Mike Mueller • May 27 2008 09:31PM

How NOT to be one of those

Bait and Switch Victims

Everyday there is at least one email or phone call from someone who is a victim of bait and switch on their mortgage.

This may come as a surprise to you but I'm okay with the occasional complaint about a loan officer's incompetence screwing up someone's mortgage. I'm okay with the occasional complaint about loan officer greed and overcharging. In both instances the borrower had the ability to determine who and what they are dealing with and fix the situation.

I'm not okay with the Bait and Switch business model so many mortgage originators are using out there.

WHY?

Because to the borrower, it's so very hard to see the Bait and Switch coming before it's too late. We, in the business can see it a mile away. To the poor unknowing borrower, these scam artists look like us, they talk like us, they even ask for the same documentation as us. Which is why the "Bait and Switch" even happens to smart people who should know better.

I shot a 15 minute video that I hope explains the bait and switch. It's 14 minutes longer than what I would prefer but all of it needs to be said. If you cannot spend 15 minutes of time learning how to better protect yourself - maybe you need to learn the lesson the hard way.

VIDEO NOT YOUR STYLE?

Maybe the following flowchart will help. It's not an absolute, there are too many variables involved but this might serve as a good reference.

True Mortgage Professionals	The BAIT and SWITCH
Mortgage Quote based on 13 vital loan and credit profile aspects and current accurate interest rates.	Mortgage Quote based on "best day" past interest rates and assuming "best possible" scenario. Often times no rate sheet is used.
Requests a complete loan application. Bank Statements, Pay Stubs, and Full Tax Returns. (May have an easy online application but still wants all the documentation)	Requests a loan application. It may be a mini application. No other documentation needed at this time. "We'll see if we need anything else later."
The Good Faith Estimate Within 3 days of application the Loan Officer will send a Good Faith Estimate based on what they see as the potential real costs for the loan. Over the course of the closing the Loan Officer will continually update and refine these costs as the terms of the loan may change.	The Good Faith Estimate Unfortunately the GFE sent by the Bait and Switch Artist has been manipulated to obscure the real costs. Although it is federally mandated, it's accuracy is not checked. Because of this loophole, they use the incorrect GFE as a sales tool.
Pulls Credit Report and shares the findings with borrower. Identifies any possible shortcomings and suggests solutions. Cost of the actual credit report may be paid by the borrower.	May pull the Credit Report but more than likely will defer pulling credit until after the appraisal. Findings are not openly shared. Borrower may be referred to "credit fixing" company for a yielding a hefty referral fee to the loan officer.
With the Credit Report, Complete Loan Application, and Complete Documentation in hand a Conditional Loan Approval is obtained. At this point the one missing item is the appraisal.	The Borrower Paid Appraisal is ordered. This runs a couple of hundred dollars. Although the appraisal was paid for by the borrower, it's not released to the borrower immediately and often not until at least 90 days after the loan is canceled. This is just one way to entrap the borrower.
Only now is the Appraisal ordered. Borrower also pays for the actual cost and is given a copy as soon as it is completed.	Sorry No Updates. One of the key factors in the Bait and Switch is to string you along.
Phone Calls and Questions are returned promptly. The Loan Officer knows exactly where the file is, and what status it is in at all times during the entire process. The borrower knows exactly what loan and the terms of the loan at all times.	Phone Calls and Questions are not returned. Often times the Loan Officer, when finally reached will say, "The file is in process" or "it's in underwriting" Specific details of the transaction are never answered.
The Rate Lock. The Rate can be locked anytime during the process. Once a particular loan program has been identified the Loan Officer will look for dips in the market. These dips will save the borrower thousands of dollars over the course of their loan. All benefit of the dip will be passed directly to the borrower. The rate lock confirmation from the Lender's Lock Desk will be sent to the borrower detailing the specifics of the rate lock.	The Pseudo Rate Lock. The loan is never really locked. The borrower is given a verbal rate lock or told they are "in line" for getting the best rate. If rates happen to dip below the quoted rate the loan officer will lock at a the lower rate but pocket the difference themselves. No written Rate Lock is ever offered.
Constant Updates Your Loan Officer calls or emails you constantly. You are kept continuously informed at all times. They call you many times before you have a chance to call them.	Finally with Appraisal in hand the loan is sent to the processor or "Closing Specialist". They are in charge of gathering all the missing documentation. Once received, you'll be hearing from them again soon. - Sorry.
The Underwriter? We passed that stage way back there! We have an approval. We have satisfied all conditions. Yes there might have been speed bumps or turbulence along the way. Often times your Loan Officer saw it before it happened and diverted around it or took steps to minimize it.	The Underwriter. They are not part of the Bait and Switch. They work for the Lender. They will analyze the documentation provided and issue a conditional loan approval. At this time the rate adjustments will be finally known. That best case scenario that was initially offered cannot possibly be completed. They can do the loan but at a much higher rate or much higher fees.
The Phone Call. The Loan officer has reviewed the Estimated Closing Statement from the title company. Everything is going according to plan. The Rate and fees are the same as quoted. They call the borrower and ask when and where they would like to sign the loan documentation. "Yes, I know it's a week before closing was scheduled, but we can close early if you like..."	The Phone Call. This may come from the Loan Officer, but chances are it'll come from the "Closing Specialist". "We're sorry to inform you that the underwriter has <insert your favorite excuse here> and we have a problem. I know you're scheduled to close a couple of days from now and we might be able to make it. However to do so, we cannot do it at the quoted interest rate." Yes, they do know that steam is now coming out your ears. Remember, they do this all the time. They know what you are going to do before you do.
They've got you! You signed the loan papers you thought you would be signing. The rates and terms were identical to what was quoted. You were informed all along the way. Your Loan Officer looked out for your best interest and advised you properly. You now have a loan that best matches your wants, needs and goals. Not to mention that your Loan Officer advised you when to lock. That move alone saved you thousands of dollars over the life of the loan! According to you, your trusted true mortgage professional is a star. You go on to tell everyone you know about the difference a single person can make.	They've got you! You walked right into their trap. You were initially drawn in by low rates and fees. The False Good Faith Estimate helped reinforce your commitment. The hook was set when you paid for the Appraisal or Application Fee. By stringing you along to the very end they've effectively stopped you from going elsewhere. Out of sheer desperation you agree to their new rates and fees. According to you, all mortgage people are lying, thieving, stealing slimeballs.

DISCLAIMER:

Although I hope this helps, in my heart I know full well that someone out there will read this lengthy article, they'll watch all 15 minutes of the video, and then they'll be seduced by the very next Bait and Switch Artist they come across.

Maybe P.T. Barnum was right after all.

Related Posts: The 7 Deadliest Mortgage Mistakes

Get a
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

4 comments • Mike Mueller • May 27 2008 04:44PM

Dear Mortgage Insurance Underwriter,

I've got two perfectly good short sale negotiations that have been shot down by your Mortgage Insurance Company and I'm not happy!

I'm not talking about Mortgage Insurance that the Homeowner had.
No. That would be too easy.
I'm talking about a dark, sinister, evil form of MI that is killing perfectly good short sales everywhere.

Once the loan was put into place, some (not all) Lenders bought a policy with you (which they paid for) on either the individual loans or an entire pool of loans. Maybe you insured a tranched portion of those pools. It doesn't matter.

The Homeowner doesn't know about this policy. Nobody knows. Ok, you do and the Lender at some level does.

And in the case of a short sale, the Listing Agent, the Buyers Agent, the Buyer, and all the parties concerned don't know about this.

Until what we thought was the "Decision Maker" at the Lender submits the deal to their boss for final approval we don't get to find out about the presence of MI or your involvement.

So the Lender's Negotiator sent the approved deal to you. It was a good deal. It was inline with the comps. It was a good offer considering. But then you come back to me saying that you are requiring a Promissory Note of $XXX,XXX ?

Did you not read the comps? Did you not see the hardship? They don't have a job! No Income! They've drained their savings to make the payments.

Thanks for taking my call. I weaseled your number out of the Lender. I think they might have been a little tired of talking to me. You were pleasant enough. I understand your position. If the home goes to Trustee Auction, your company is set to pay to the lender $xx,xxx. In approving a short sale you are setting your company up for the same loss - ONLY if the Homeowner signs the Promissory Note. I get that too.

My problem isn't in the business decision to insure the loan. that's business. My problem isn't that you wasted a lot of people's time, I can blame the Lender for that.

My problem is that there is no room is this business model for humanity, empathy, or compassion. Your calculator shows either black or white - period. The only loss you are concerned with is the loss your company will have in paying the claim. If the home becomes an REO - you don't care.

You are forcing two perfectly good short sale transactions this week into foreclosure.
Two perfectly good deals.
Two family's who tried to sell, tried to refinance, tried to modify, and then finally tried to short sale, all in good faith.
And to you, their efforts mean nothing.

Shame on you!

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

23 comments • Mike Mueller • May 14 2008 02:38AM

LIBOR Liars

LIBOR: "London InterBank Offered Rate"

It's what one London based bank will lend money to another London based bank.

To us, it's an index. This is all about London - why should we care?

Remember how ARM's work

An index is just something that we can all point to and agree upon. It's a factor that cannot be, or should not be manipulated. It is what it is. LIBOR is an index, so is COFI, MTA, or the 1 year Treasury. We generally all agree to use the same figure, as reported in the Wall Street Journal on such and such a day. That way we are all on the same page (pun intended).

To create a Adjustable Rate Mortgage we then take an Index (any index) and add a Margin to it. The Margin is just a number that the Lender adds to create the Note Rate. It does not correlate directly to profit margin.

INDEX + MARGIN = NOTE RATE

Simple enough right? While the Index may change, moving up or down, the Margin is the constant. It never changes. The ARM goes up or down depending on the movement of the index.

what if the LIBOR Index was manipulated?

Today, Bloomberg has an article reporting that London is cracking down on the banks that help create the LIBOR Index. It seems they've been fibbing. It has some pretty harsh quotes...

"The Libor numbers that banks reported to the BBA were a lie," said Tim Bond, head of global asset allocation at Barclays Capital in London. "They had been all along."

"Since the credit crunch, it's something that appears to have been manipulated," said Hahn, a former managing director at Citigroup. "We are in an extraordinarily delicate confidence time where a small event can shatter things quite easily."

Why is this so important to us here in America? This Index determines the interest rate of MANY consumer loans here in America. Not just a few exotic loans either.

Most every Sub Prime Loan,
Many A Paper ARMS,
ALT-A Loans like the popular 3/1 or 5/1 Fixed Portion ARMS,
And then there are the Payment Option ARMS or Neg Am Loans, many are tied to LIBOR as well.

So now, if London makes these banks tell the truth, you'll see LIBOR go up. That'll have implications for all those loans based on the LIBOR Index here. You know where I'm going with this...

We're all connected.

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

2 comments • Mike Mueller • May 13 2008 12:11PM

How to get a Rate Quote

There's a lot of information on the internet. Google currently lists over 1.3 MILLION pages for the seemingly simple two words, "Mortgage Rates".

You'd think with that many pages, getting a mortgage rate quote would be pretty easy. Wrong!

Everyday I receive a query or two on Mortgage Rates.

I can sort these mortgage rate questions into three distinct categories, each one receives a slightly different response. Let's start with the best and work to the worst.

1. The Full Loan Application:

With a full loan application, I have the information to find and quote the best rate and program to fit the financing you need. Your cost to complete a full application is ZERO (No application fee). Your obligation is also ZERO. However, if you like this loan and rate... it is LOCKABLE. Right then - right now!

Rates can change multiple times a day, your rate quote can be easily updated at any point in time. The complete application also tells me you are serious. You get my full attention.

Here's what I'll need. 3 months of Bank Statements, 2 Years of complete Tax Returns or W-2's, and 1 Month of Paycheck Stubs. Fax those three things to my online secure fax (800 745-1032), I'll send you a loan application as a .pdf, get that back to me and you are done!

2. The Mini Loan Application:

16 questions. That's what I'll ask you. 13 of which can have a tremendous impact on your interest rate and fees. While not a complete loan application, armed with the answer to these 13 questions, I can get a close approximation to what you would qualify for.

To make it easy for you I have a quick little online form.

Unfortunately, this loan is NOT Lockable. Like the quote? You'll have to move up to the Full Loan Application.

3. The Phone Call:

"Hi Mike, what's your rate on a 30 Year Fixed?" Don't get me wrong. I don't blame you. Shouldn't it really be that easy? Unfortunately, it's not. And it's only getting more complicated.

Should you happen to call me and ask, my answer will probably be something to the effect of, "I have rates from anywhere from 5% to 10%. Which one would you like?" Not very helpful - I know. But it'll start the conversation we need to have. I'll attempt to move you up to number 1 or 2 above. If I can't. I wish you all the best, (I really do) but have a nice day.

I feel your frustration. Why can't I just get a simple rate quote over the phone? You can. From a loan hack (salesman) who isn't interested in doing what's best for you. They'll quote you the very best rate from last week knowing full well it doesn't exist today, or you'll never qualify for it, just to get you in the door.

Mike, you certainly have strict rules...

The truth is that it's not me. It's the business. Look at some of these Titans in the industry. Dan Green in Chicago, Rhonda Porter in Washington, Brian Brady in San Diego, Jeff Belonger in New Jersey, and Robert Ashby in Florida. These Mortgage Professionals know exactly what it takes. They are all True Mortgage Professionals. They "Practice" home financing, not sales calls. Call them for a rate quote and they'll do the exact same thing.

Looking for financing?

Now that you know your three options, pick one and call me!

(925) 288-9977 Ext 104

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

6 comments • Mike Mueller • May 12 2008 10:37AM

Jumbo Mumbo Jumbo

Jumbo Rate Locking

It's a shame that a great idea can sometimes be dragged down by others.

Yes, I'm still touting Jumbo Mortgage Rates.

Here's a synopsis of what happened.

Tuesday, May 6th: Fannie announces to that they are going to enable lower interest rates for Jumbo Mortgages - pushing them closer to Conforming Loan Rates.
Wednesday, May 7th: Fannie did just that. Jumbo Mortgage Rates dropped significantly.
Thursday, May 8th: Lenders are reporting, as expected, an increase in Jumbo Mortgage Locks.

However, upon closer inspection, those Lenders are reporting today that the loans that were locked were also a "bit higher than the prevailing interest rate".

Let me decipher that for you

(I'm using all hypothetical numbers and rates just for clarification)

You applied for a loan a couple of weeks ago with "Loan Officer Larry". At that time let's say Larry quoted you a real interest rate for your Jumbo Mortgage at 6.75%

Yesterday Larry called you. He was out of breath, excited, and could hardly contain himself. He told you he locked your loan not at 6.75%, not at 6.5%, but all the way down to the unbelievable rate of 6.0%!

Can you believe it? That Larry, what a great guy!

Here's what really happened

Rates did drop. They dropped significantly. But they dropped much more than Larry told you. What Loan Officer Larry did was give you a partial break and pocket the rest in the form of Yield Spread Premium. That's a fancy word for putting cash in his pocket.

According to the lenders, Larry made a lot of money yesterday.

How do you feel about Larry now? Did you get LOL'd? Sorry about that.

Follow me on Twitter
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

3 comments • Mike Mueller • May 08 2008 12:16PM

Did you see Jumbo Rates Today?

They were down dramatically. Really Dramatically.

Last Friday the difference between Conforming 30 year fixed rates (loans under $417,000) and Jumbo Conforming 30 year fixed rates ($417,001 and above) was roughly 5/8ths.

That was a big difference. On a $417,000 loan the Payment would be somewhere around $2,400 a month. Add a single dollar to the loan amount and that same payment would have jumped to $2,568. That's an additional $168 each and every month.

Today that difference was almost nil. How about 1/8th? The same example above would have been $2,433 for a $417,001 Jumbo Conforming Loan today.

That makes a big difference ($135 a month), but let me share an even bigger difference.

I have a loan for $925,000 on my desk. It's a Jumbo - always has been. You can only guess at the difference a couple days makes for them.

Sometimes Good News Gets You In Trouble

I just got off the phone with a local Real Estate Agent relaying this information. He's always on top of the information game. Reads all the papers, watches the news. You know the type.

"When did this happen? Why didn't I hear about this?", says he.

The Media has plenty to report on, they don't know and they can't catch everything I explained. "Besides, I reported on it yesterday". Ooops... thought I.

"I read your blog every day, I saw nothing about that." I could tell he was pulling up the latest post as he was talking.

"Dave, it wasn't on the Blog. It was on Twitter." Ever get the feeling you shouldn't have uncorked the Genie?

"What's a Twitter?" So for the next 20 minutes I walked Dave through Twitter. Maybe I should have done that earlier. My Fault.

For the rest - here's a simple way to get the same information that Dave does (now).

Follow the instructions at: www.PatagoniaFinance.com/twitter

Will this pricing last? If it doesn't how will you know?

Follow me, or the Bay Area Mortgage Report.

Be informed.

Follow me on Twitter

Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

3 comments • Mike Mueller • May 07 2008 07:10PM

Why the New Trustee?

When the Lender files the Notice of Default to start the foreclosure process often times they will also assign a New Trustee.

When that happens you'll receive all sorts of important registered letters announcing the New Trustee. By law they have make sure you are properly notified.

(you might call it being Spammed)

This is normal.

So why do they do this do you ask?

Maybe the New Trustee is better, faster and / or cheaper than the old one when it comes to the Foreclosure Process. That's all.

The Good News is that the New Trustee cannot change the terms of the Note. They only act as instructed.

The Bad News is that you still have a Notice of Default and it's been transferred to a company that might better process that.

Follow me on Twitter
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

4 comments • Mike Mueller • May 05 2008 11:49AM

I almost gave someone $33,000 yesterday

Yesterday we had a dip across the boards in interest rates.

I advised my clients to lock if they could. I had three that were ready to lock.

Talk about Volatility.

Today interest rates are back up and don't look like they'll be dipping again anytime soon.

For the rate shoppers out there. If you didn't have your Ducks in a Row - you lost.

What exactly are those Ducks? Good question.

a Complete Mortgage Loan Application including all requested documentation.
an Underwriters Conditional Loan Approval
The ability to meet those Conditions in a timely manner

That's it. Seems pretty simple right?

But that's also why you cannot pick up the phone and shop for rates.

Without covering items 1 thru 3 above, the rate quote you hear on the phone is either from a Liar or a Knucklehead (thanks Jack)

You must work with a True Mortgage Professional. One that can properly advise you to lock or NOT to lock at any given point. One that has real time information on what is happening in the marketplace.

Speaking of locks - you did get that lock verification in writing didn't you?

Here's the proof in real dollars.

Yesterday I ran a purchase scenario for a potential client. They were not ready to lock.
Had they locked they would have been able to buy $33,000 more home. Same loan, a Conforming 30 Year Fixed.

Not for the same monthly Principal and Interest Payment - but LESS!

Yes, that's $33,000 for nothing.

If you extend that out 30 years, at an annual appreciation rate of 7.2% (go ahead and ask why) that same $33,000 becomes $265,679.17.

Is it worth working with a True Mortgage Professional yet?

As my friend Brian Brady says, "If you thought dealing with a professional was expensive, wait until you find out how much dealing with an amateur costs!"

Follow me on Twitter
Up to the minute Mortgage Rates Report via Twitter
Check out "The Foreclosure Report" (It's help for homeowners in trouble!)

This post brought to you courtesy of Mike Mueller.
Feel free to ReBlog or ReTweet as you like as long as you credit the source (him).
Did you know? He's for hire! He builds Blogs, Graphic Images and Widgets and Facebook Pages and besides… He knows lots of really cool stuff.

Hire Mike (925) 456-4567

14 comments • Mike Mueller • May 02 2008 03:58PM

Mike Mueller, Social Media.ist

Add a new Widget

Search for Homes

Mike Mueller

Tech and Social Media Consultant

My Links

Blog Archives

It Takes Just 3 Words to Stop the Rate Lock Scam!

FEELING EMPOWERED YET?

ARE YOU READY?

Are You Locked?

or Do You Just Think You Are?

DO NOT BE FOOLED!

B A L A N C E

How NOT to be one of those

Bait and Switch Victims

WHY?

VIDEO NOT YOUR STYLE?

DISCLAIMER:

Dear Mortgage Insurance Underwriter,

LIBOR Liars

Remember how ARM's work

INDEX + MARGIN = NOTE RATE

what if the LIBOR Index was manipulated?

How to get a Rate Quote

1. The Full Loan Application:

2. The Mini Loan Application:

3. The Phone Call:

Mike, you certainly have strict rules...

Jumbo Mumbo Jumbo

Jumbo Rate Locking

Let me decipher that for you

Here's what really happened

Did you see Jumbo Rates Today?

Sometimes Good News Gets You In Trouble

Why the New Trustee?

Why the New Trustee?

I almost gave someone $33,000 yesterday