Thursday, September 07, 2006

Give Us All the Information

Mortgages are fairly complicated financial instruments, and deserve a loan officer's undivided attention when structuring the deal for any prospective borrower.

Unfortunately, we get prospects who come to us saying something along the lines of: "I was a quoted 6.5%. Can you do better?" What program? Can you qualify for the mortgage showing full income and assets? What's the loan amount? Purchase or refinance? What is the loan to value? How much are you putting down? Is this an interest only? Fixed Rate or adjustable? What is your credit profile? Any judgment lurking on your credit report? What is you middle credit score?

We ask these questions because we have to ask these questions. I cannot know if a rate is a good one or not until the particulars are divulged. For some 6.5% might be a fantastic deal, for others the worst deal out there. Each mortgage is specific to the inidividual borrower.

This is why it's most important to develop a level of trust with your loan officer, and work with a loan officer who educates you as a consumer along the way, so that your understanding of your financial picture becomes more broad as you progress through the transaction. Ask questions, and answer questions.

Begin the dialogue, the loan officer is on your team.

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