Monday, July 17, 2017

Let's talk PRE-APPROVALS!

I bet that you didn't know that only 12% of people who get pre-approved end up buying within the timeframe of their rate hold.

That's right!

You have about an 88% chance of NOT going through with the original pre-approval you got when you first started looking. Truth is, the house-buying process can take a lot longer than most people admit.

Did you also know that lenders do not give the BEST mortgage rates for pre-approvals? I'll tell you why.

When lenders get a pre-approval they have to hedge those funds so that they are available to the borrower within four months.

Hedging costs money.

So what many lenders now do is give you about a .2 difference in your PRE-approval rate versus for your "real" deal rate.

Furthermore, lenders often have "real-deal" specials for mortgages closing within a certain period of time, or, a certain amount, or, well, any real factor they come up with.

Although I think pre-approvals are important, I don't think it's THE time to focus on the rate, as much as, figuring out your road map to mortgageability (is that a word? just made it up if not!).

Any questions? Message me.

Posted at 05:49 PM