The Rate/Wait Game.

Consumers, aren't we all? If you own a home or are thinking about buying one, you just may be familiar with one of the battles going on right now. That battle involves interest rates. "Spoiled are we, yes we are," I say in my best Yoda voice.

In a world where some houses have stagnated or plain tanked in value, the same world where credit extended to folks in a position of uniqueness may have been stopped, we live in an economic atmosphere where some consider lower interest rates a part of the cure. (Between me and you and please don't tell a soul... these lower rates have probably been going on WAY too long as an economic stimulus. Frankly, should of ended long ago, but...)

Take advantage of them while you can! Many folks are sitting on the proverbial fence, wanting to know if rates may jump down a 1/4% or 1/8% or even a full freaking point! Today, interest rates still hover in the high 4% range for prime borrowers on a 30-year fixed rate mortgage.

Hesitation may cost or that roll of the dice may save you a buck or two. There are folks everywhere predicting where interest rates may end up. I believe in the cycle, the circle. Heck, I think we need to learn from nostalgia. More than that, my best advice is the following:
Turn in your mortgage application and supporting documentation right now! If you aren't ready to jump, at least you can practice that vertical leap when you are ready to lock in. This way you will have already set the wheels in motion whether you are waiting to buy or refinance or getting on the bandwagon right away. Here's a brief (albeit not totally extensive) list of what you'll need to get together:

* Last 2 years W-2's and 2 most recent pay-stubs* If you are a renter, have your Landlord's name, address, and phone number handy. Make sure you have that info for the last 2 years of your rental history. Assuming you pay your rent by check (and I hope you do) get 12-24 months of cancelled checks.

* Last 2 Months Bank Statements (All Pages) & the most recent statements on all asset accounts (401K, IRA, Mutual Funds, Retirement, Etc.)

* If you are Self-employed, you'll need the last two years tax returns with all schedules and attachments... along with a year-to-date Profit & Loss for your business.

* For purposes of identification, you'll need copies of your social security card and photo I.D. (typically your Driver's License)

* If you are refinancing, you'll need a few of the things above... but will also need your most recent Mortgage Statement & Homeowner's Insurance Dec page (which is the top page of your Homeowner's Insurance). It's also a good idea to get copies of your most recent statements on all other accounts you want to pay off... assuming you want to consolidate high interest debt.

* If you own more than one property, you'll need the most recent Mortgage Statement, Homeowner's Insurance Deck Page, & copy of any leases you have on rentals.

* Any credit issues (late payments, bankruptcies, judgments, etc) must be addressed in a very detailed credit explanation letter and appropriate supporting documentation, if applicable.

* If you aren't currently escrowing your taxes, you will need copies of paid/unpaid tax bills.

* Retirement/Social Security award letters if you are receiving that type of income.

Getting these things together and submitting to the lender will help ensure there are no delays when you want to lock-in to that killer interest rate.

Think about it... hard and wise. Speculation got us in trouble. Don't let it do the same to you. While you may turn out right in interest rates dropping a slight percentage here and there, it may not be wise to opt for a $300.00 savings if you can get approved for something that will save you $200.00 right now. What if that $200.00 savings goes away all together? Roll the dice all you want, my friends... if you can attain (at a relatively decent cost) fixed rates on a mortgage of any kind in the 4% bracket, history will probably be very kind to you. Expect at least 7% before the Mayan Calender comes into play:)

Rate/Term Refinance
Your Credit Report
Should I pay points?
How to help make sure your loan closes as fast as possible.


Jason Sardi
Mortgage Banker
1-866-262-8720 ext. 229
http://activerain.com/blogs/shears76