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

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'.