Sonoma County Mortgage Rates Update-12/18/09
December 18th, 2009 categories: Mortgage Rates
Should I look for a mortgage or a house first?
“Looking for a house before you have been pre-approved for a loan is like trying to win at LOTTO without buying a ticket.” Dave Raffi
The prize may look great but someone else will get it unless you are in the game!
Why do people go look at homes without knowing what their payment will be, if they can afford the home or if they can be approved to buy it? The simple answer is its fun. People love to look at homes a think, “This would be perfect for the kids” or “I can see our furniture right over there.” Problem is they are just teasing themselves and frankly being a tad foolish.
The bigger question is, “Why do Realtors drive them around to look at houses they may not be able to buy?” Crazy as it sounds some do. Most Realtors will ask you to get preapproved first. They know you need to be prepared and knowledgeable about payments down payment, etc. before you go out to look.
Moral of the story…I have met with countless people who have gone out and fallen in love with a home before they came to see me. Then we sat down and they said, “That payment is too high. I can’t afford that!” They left feeling discouraged. Don’t spend your time looking until you know what you can afford and what price range is best for you.
Lenders will meet with you, explain all the costs and what a payments look like, get you pre-approved and answer all your questions. What is the cost for that? Nothing! How’s that for a deal!! All you have o do is come in and spend an hour or so and you’ll leave with the confidence that comes from knowing you can afford the home you are looking at and that if you fall in love with one of them, you can buy it without problems arising.
Mortgage Rate Update…
Rates moving up!
This week was a tale of two directions. First of the week they moved higher and the latter part of the week they moved a bit higher. The net effect was no change! The point is rates are still amazingly low and if you are buying, lock your loan as soon as you get into contract.
You always have more to lose than gain by “floating” unlocked. Rates go up fast and go down slowly. Don’t gamble; lock in an incredible rate now!
Rates for the week ending 12/18/09
30 Year Fixed Rate 5% w/5.24 APR
This quote below is based on a FHA loan with a minimum of 3.5% down, for a person buying a personal residence with a FICO score of 620 or better who would be locking for 30 days.
30 Year Fixed Rate 4.875% w/5.19% APR
The quote below is based on a Conventional Loan with a minimum of 10% down, for a person buying a personal residence with a FICO score of 740 or better who is locking for 30 days.
Call team “WineCountryMoves.com” today and get started on your piece of the American dream!
Happy buying!
This article was contributed by Dave Raffi:
707-303-2933
Regional Manager
Mission Hills Mortgage
For a list of properties available visit: WineCountryMoves.com .
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