Mortgage Myth Busters: John Cannata, Texas Home Mortgage - Purchase or Refinance (214-728-0449 http://TexasLoanGuy.com)

Sure I could just QUOTE you a rate, but it probably won't be accurate

Sure I can just QUOTE you a rate, but it probably won't be accurate. Will that be acceptable to you? Of course not!

This post is sparked from a recent email inquiry I received. The email asked for a 3.5% rate on a 30 year mortgage. Thats right... 3.5% mortgage product. After asking a few questions and providing feedback on today's mortgage rates, the shopper insisted that I just provide the mortgage fees to get a 4.25% (at least this time he is closer to reality). Still, I try to understand the goals and their financial situation, but they were quite insistent on me just giving them a quote at the rate they wanted without me knowing anything about their credit profile. My reply was "I apologize, but that is just now how I work. If you want an accurate quote, I'll need to understand more about your financial situation and goals."

If they are serious about moving forward, they will pick up the phone or email further details. Until then, we are just wasting each others time. You'll find someone that will just provide a rate, but expect to be irritated when they complete an application, run your credit, and suddenly the quote is higher due to a rate increase or the increase in points required. Then WE are the bad guys/gals because it appears we just 'switched' the rate and/or costs, when in actuality the original quote you received was never accurate.

Don't get me wrong, I'm not surprised when I get the question - "Whats your rate?".  Years ago, I use to be confused why somoeone would just ask such a generic question. But the fact of the matter is, when a homeowner (or homebuyer) is looking for a mortgage, they really are not sure what to ask. So, they ask the basic question to get the conversation going.

My typical response to this question is to ask questions of my own, so that I can understand their inquiry and provide an accurate quote:

  • How long do you plan on living in the home?
  • Are you looking for a 30 year term or something shorter?
  • What is your down payment (if purchase)?
  • Tell me about your credit profile (lates, previous collections, mortgage history, etc.)

These are just a few questions which will help a mortgage professional provide an accurate quote. Truth is, anyone can just provide a number off of the rate sheet. But, that may or may not be what you will qualify for.

My advice to "rate shoppers" is to be patient. Understand the mortgage product that is being quoted to you and find out what the qualifications are for that product. When calling one company after the next with the same question, "whats the rate", you'll find out that the products may all be different. One may quote a 30 year fixed rate, someone else may quote an adjustable rate mortgage, and a third person may quote a negative amortized loan (where the principal balance increases each month).  And I have not even mentioned those quotes that include points and those that do not include points.

After all... you are wanting an ACCURATE quote right? If not, then we wasting each others time. My adivce is to plan on spending a few minutes on the phone with a mortgage professional. Then and only then will you know 'What is the Rate'.

 

*********************************************************

Are you looking to purchase a Texas home?  Perhaps you love your Texas home but would be interested in refinancing your Texas mortgage to a lower interest rate?  

I'll help you get pre-approved for your Texas home loan and even suggest some very knowledgeable and professional Real Estate Agents in your area of choice.  If you are available to talk, I am available to listen.  Give me a call or visit my website for more details.

Do you want to know all of your mortgage options? Call me today and let's discuss them further.

Texas Home Loan Consultant

Always available for your Texas Mortgage and Home Loan needs!

John R Cannata    P#214.728.0449

NMLS # 322646

Texas Home Loan Expert

Frisco TX Mortgage

      

 

The views expressed on this site are mine alone and do not reflect the views of my employer.

Comment balloon 11 commentsJohn Cannata • January 23 2011 11:11AM
Sure I could just QUOTE you a rate, but it probably won't be accurate
share
Sure I can just QUOTE you a rate, but it probably won't be accurate. Will that be acceptable to you? Of course not! This post is sparked from a recent email inquiry I received. The email asked for a 3. 5% rate on a 30 year mortgage. Thats right… more
You need a good reason to refinance your texas mortgage? I have a few…
share
Have you heard the old adage in the mortgage business that states when its a good time to refinance your home? The magic number was two percent (2%). If you could lower your interest rate by at least 2% then its a good time to refinance your Texas… more
What does a lender look for on the Mortgage Loan Application?
share
After you fill out your Mortgage Loan Application do you wonder what the lender is looking for specifically? True, there are many items the underwriter is reviewing, but the most important question they ask themselves is - 'what is your… more
What You Should And Shouldn't Do During The Mortgage Process
share
Each lender and each loan program has different guidelines that must be followed. A good rule to follow (from a consumer stand point) is to not do anything that will have an adverse effect on your credit score while in the loan process. We know it… more
Common Myths About Your Credit
share
In the mortgage profession, you tend to see a lot of credit reports. With each transaction, the clients credit is pulled and reviewed with them. Personally, I go line by line to ensure the reporting is accurate, even when the clients credit score is… more
There is a Risk involved with using your 401K Account as your Down…
share
Sometimes finding a home can be a long process, but you did it. You have finally found the home of your dreams. Now there is one thing that stands between you and your new home. It’s the Down Payment. Some home buyers are looking to use… more
Do you read a post and spread the word? Or do you do your own…
share
Do you read a post and spread the wor d by either creating your owner post or reblogging the post? Or do you read a post, do your homework to confirm the accuracy, and then create your own post? In today's AR Newsletter, a post was shared… more