The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

"How Seller Credits Can Help You Maximize Savings on FHA and Conventional Loans" explaining what seller credits are, how they can be used for closing costs or interest rate buy-downs, the FHA 6% seller credit allowance, and a comparison table of conventional loan seller credit limits based on down payment. Includes a pie chart showing a split of 3% used for closing costs and 3% for interest rate buy-down.

How seller credit maximize your purchasing power on a conventional or FHA home loan

By Scott Sheldon / May 16, 2025

Maximizing Your Home Buying Power with Seller Credits When purchasing a home, every dollar counts. Whether you’re putting down 3.5% with an FHA loan or opting for a conventional route with 10% or 20% down, understanding how seller credits work can be a game-changer. These credits can significantly reduce your out-of-pocket expenses, lower your monthly…

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

The Risks of Chasing a Lower Mortgage Rate

By Scott Sheldon / May 13, 2025

Why Chasing a Lower Mortgage Rate Can Backfire When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Real-World Scenario You’ve got an offer accepted on a house. You’re working…

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A woman sitting at a kitchen table looking through documents with an American flag and framed military photo beside her, symbolizing a surviving spouse exploring VA loan options.

VA Loan Options for Surviving Spouses

By Scott Sheldon / May 8, 2025

Understanding VA Loan Refinance Options for Surviving Spouses Losing a spouse is one of life’s most challenging experiences, especially when that spouse served in the military. Beyond the emotional weight, surviving spouses often face financial uncertainties, including the question of how to keep or refinance their home. Fortunately, the VA home loan benefit doesn’t always…

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California homes near wildfire zones highlighting insurance challenges due to climate change.

Why Home Insurance Is Skyrocketing in California—and What Buyers Should Know

By Scott Sheldon / April 29, 2025

​Climate Change and Mortgage Challenges: Navigating Homeownership in California In recent years, climate change has emerged as a significant factor influencing various aspects of homeownership, particularly in California. From escalating insurance premiums to challenges in refinancing and purchasing homes, residents are navigating a complex landscape shaped by environmental and economic forces.​ Rising Insurance Costs Amid…

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A scenic suburban neighborhood in Sonoma County, California, with diverse homes surrounded by lush greenery and rolling hills. Overlaid bold white text reads, “Buying a Home in Sonoma County in 2025: Income, Prices & Market Truths.”

Navigating Sonoma County’s Housing Market in 2025: What Buyers Need to Know

By Scott Sheldon / April 24, 2025

Sonoma County Home Buying in 2025: Navigating Economic Uncertainty and Affordability As a mortgage loan officer with two decades of experience, I’ve seen the housing market ebb and flow. In 2025, Sonoma County presents a unique blend of opportunities and challenges for prospective homebuyers. Economic uncertainties, fluctuating interest rates, and affordability concerns are at the…

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Line graph showing U.S. mortgage rate fluctuations in 2025 with key economic events like inflation spikes and Fed policy shifts annotated for context

What’s Driving the Volatility and What Comes Next?

By Scott Sheldon / April 15, 2025

Mortgage Rates in April 2025: What’s Driving the Volatility and What Comes Next As of April 2025, mortgage rates are experiencing notable fluctuations, reflecting the broader economic uncertainties. The average 30-year fixed mortgage rate has hovered around 6.6% to 6.85% in recent weeks, influenced by various macroeconomic factors. Key Factors Influencing Current Mortgage Rates Federal…

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Now or later?

Should You Buy a Home Now Or Wait for Lower Rates in 2025?

By Scott Sheldon / April 10, 2025

Should you Buy a Home Now at 6.5% to 7% Interest, or Wait? Let’s address the elephant in the room: mortgage interest rates. If you’re asking, “Are rates going to drop soon, or should I buy now at 6.5–7%?” you’re not alone. This question is everywhere right now, and honestly—it’s a fair one. Rates have…

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"Bold white text on a deep blue background reading 'Why Mortgage Rates Vary Between Lenders'"

Why “Cheaper” Isn’t Always Better: The Real Story Behind Mortgage Pricing and Underwriting

By Scott Sheldon / April 2, 2025

Let’s get real for a second: mortgage pricing isn’t as wide open as most people think. Sure, it’s tempting to chase the lowest rate you see online or the lender who claims to save you $50 a month, but here’s the deal most borrowers never hear — mortgage lenders, for the most part, are all…

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