• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Mortgage Shopping For Competitive Rates? How To Do it Right!

September 19, 2011 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email
3 pricey mortgage loan scenarios to watch for

Mortgage rates and the financial markets move all day long. On any given day you can expect that mortgage rates have the ability to change several times. It is because of this when you are shopping for a home loan, you should compare a few different lenders looking at a combination of rates and costs.

Mortgage bond prices similar to stock prices are random and they can change very frequently. Unfortunately, the movement of mortgage bonds cannot be predicted with a crystal ball. They literally can change every few minutes and because of this, timing the market is the luck of the draw–pure and simple.

When mortgage bonds move in any direction mortgage rates automatically follow suit. This means that interest rates change on everything from FHA loans to standard 30 year Conforming loans. Mortgage rates are constantly moving. For example in the last 30 days mortgage rates changed literally every few hours every single day.

That’s very fast.

This phenomenon makes the challenge of mortgage shopping difficult for people looking to obtain the lowest mortgage rates available. The reason for this is because it could take several hours to actually do your mortgage shopping (moreover to actually do it correctly).

So if you are mortgage shopping for competitive rates be prepared to compare real rates.

The reality of it is that you are only going to be able to get “so low” meaning that at some point, sheer luck is going to come into the equation. So shopping mortgage rates is a good idea.

On any given day no one has inside scoop on which bank has the lowest rates, lowest fees or the widest product offering available. You just don’t know. You have to effectively compare rates and costs to determine the lowest possible home loan.

While you’re doing your shopping for competitive mortgage rates, remember mortgage bonds are still influx.

You could be shopping for a home loan right while rates are rising.

Since September 2010 there have been several days on which mortgage interest rates rose .25%. There has also been lots of days where rates have fallen by that much as well. Just be mindful of the fact that mortgage rates do the following:

  • Some days, mortgage rates rise
  • Some days, mortgage rates drop
  • Some days, mortgage rates do nothing at all

Every once in a while there are even days when rates do all three. Fun eh?

At the end of the day you are always going to be at the the mercy of the market. This is a fact.

As market moves, you as the consumer pull a rate out of marketplace and lock it in with the help of a good mortgage lender.

Want to begin shopping for competitive mortgage rates?

Since no one has a crystal ball for shopping home loan rates, you can at least shop for accurate information.

Connect with different loan officers before actually locking in your mortgage interest rate. You will want to gather as much information as you possibly can about your finances, your house or houses, each individual lender’s loan process, and economic movers and shakers influencing mortgage rates.

After speaking with a few of these loan officers, you will get a sense of two things. First you will get a close estimate of what your closing costs and rates will be. This is important for comparison’s sake, to compare the hard numbers. You need to know which lender is consistently in the game, and which lenders aren’t. This can only be done by performing research.

Secondly, you will get a pretty good feel for the loan officers you have spoken to. Who’s a professional loan officer, who is not and who takes days to return a telephone call.

Then, when it is time to lock in your mortgage interest rate you will not have to mess around with the shopping process. You will already have your “A-Team” lenders lined up and you can simply choose the one that gives you the best combination of rates and fees at that time.

When you actually shop for mortgage rates, do it right, give your lender permission to pull your credit report. Your lenders need to know that stuff and contrary to popular belief, it will not adversely affect your credit score. You’ll save yourself a lot of time too.

Okay, now you’re doing your competitive mortgage shopping about getting some mortgage rate quotes?

If you are in the market for a mortgage, or think you might be down the road, start your shopping now. Get your A-Team lenders lined up and get a rate quote based on your parameters.

Yes, get quotes with some other lenders, too.

Here’s a mortgage tip: do a decent amount of research, to pick a good lender then decide who has the best combination of rates and fees. There’s never a guarantee with rates, but with the right information, you can be well on your way to successfully completing your mortgage shopping for the most competitive rates available.

 

 

Related Mortgage Advice from Scott Sheldon

  • 4% Mortgage Rate, Not Today

    The media has been going haywire talking about the great 4% mortgage rate. While rates…

  • Mortgage Rates Rise On Latest Jobs Report

    Friday October 7 marked the latest jobs report coming in showing the new unemployment rate…

  • Lowest APR or Lowest Mortgage Rate?

    People purchasing and refinancing homes always are asking the question is it best to get…

  • Mortgage Shopping- A Different Approach

    Ever begin shopping for a mortgage loan and then realize the mortgage company you selected…

Filed Under: Interest Rates, Mortgage Shopping

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window