NW Indiana Loan Guy Blog

Because of the latest media coverage, I have heard this statement several times during the past couple weeks. The question is…. does it make sense?

Yes and No. While I cannot blame someone for wanting to get the best interest rate possible, it is nearly impossible to time the market and get in at the bottom. That said, here’s a solution.

If, and that is the keyword here, if you believe that the government is going to step in and help lower rates, now is the time to take action. Even though they don’t know what they are going to do, how they would do it, or even if they will, now is the time. Let’s get an application on file, any credit or other issues cleaned up and everything ready to go so that if rates do drop, we can lock them in. We can start on the file, push it through to underwriting and “float” the rate, meaning we can lock and close in a short amount of time when you find a rate you are comfortable with.

Waiting to start the application until after the rates drop is like having a brand new spare tire full of air in your garage. Sure, it’s there if you need it, but it may take a long time.

Besides, if rates do drop as the media is touting, you are not going to be the only one with the idea to refinance, which will extend the amount of time it takes to close, and maybe even cause you to lose that low rate you hoped for.

As always, please contact me if you have questions. As your Northwest Indiana Loan Guy, I am here to be your trusted advisor for all things mortgage and credit.

Scott

Your first and last stop for Indiana FHA loans, Indiana FHA 203(k) Streamline loans, Indiana USDA Rural Development loans, and Indiana VA loans.