Mortgage rates have risen about 1% in the last 4 months of 2013. We even had some days that rates would rise 4 times in one day (read about that here).
Refinancing your loan is no longer the cool topic at the hors d’oeuvre table at the Bunco party or at the water cooler discussion in the office. This is usually the spot where you will find a “topper” or “one-upper” who jumps into the conversation and says “Oh, yeah… Well I got a mortgage rate of 1.99% for 30 years”.
You know who I am talking about. You don’t really believe them but when you hear that rate you almost feel compelled to call someone on Monday to see if you can get the same deal. You dread making any calls because mortgage people can often be viewed in the same light as a car salesperson; Hard to get to the truth and trust. The housing bust of 2007-2012 has not helped enhance that reputation.
I mean when you think about it, is there anything more personal and intrusive than applying for a mortgage? You have to disclose everything about yourself, no stone goes unturned.
Do you pay your bills on time? How much do you make? How much money have you saved? The next thing they will want to know is the color of the shirt you will be wearing tomorrow!
So who do you turn to when it is time to get some real answers to your questions?
Ask Your Family:
_________________________Random Quotes to Remember ~ “Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rodgers
- Pro: Trustworthy. Possibly friends or familiar with the person that has helped them in the past.
- Con: May be too close for comfort. Do not want them to know your financial situation.
Talk to a Neighbor:
- Pro: They live close enough to you that they will give you an honest assessment of the Loan Officer they have used and will give a good referral.
- Con: May be too close for comfort. Do not want them to know your financial situation or have any part of your situation shared with the neighbor.
Contact Your Realtor:
- Pro: Have trusted mortgage professionals as partners. Strong sense of current market conditions. A must “go to” source for purchase transactions. Have a vested interest in your transaction.
- Con: None!
A Financial Planner:
- Pro: Looking out for your best interest always. Have trusted mortgage professionals as partners.
- Con: None!
- Pro: They are typically close enough to you that they will give you an honest assessment of the Loan Officer they have used. Typically a trusted source.
- Con: May be too close for comfort. Do not want them to know your financial situation
Regardless of where you get the name and number, a quick conversation should shed light on the Loan Officer’s industry knowledge and willingness to assist you. Bottom line, find someone that appears trustworthy to you and you feel comfortable working with.
About the Author: Kirk Chivas is a licensed Loan Officer and co-owner of First Commerce Financial, LLC, a mortgage brokerage based in Wixom, Michigan. With over 17 years of experience, Kirk has committed to providing Michigan residents with accurate and honest mortgage advice. If you have any questions about your current or future mortgage needs, please feel free to ask Kirk a question over on his website.