When I bought my first house I sat across from a mortgage broker and thought I could do a better job than she is doing. I was a first time home buyer and much of the information she was giving me went in one ear and out the other. Now I know that there is so much information it is difficult to really get it all in one sitting. By the time the 30 days is over, you kinda understand the process. Then hopefully by the time you do it again you start with a little more understanding. This is why you must choose someone you trust…someone you make a connection with!
On top of so much information, everything is constantly changing. Borrowers must understand that all the lender is doing is putting together a package they can sell! They do not want to, and can not afford to, keep the loan in their portfolio. So underwriters, loan representatives and the loan originator work together to put together a complete package. A lot of what we ask for “doesn’t make sense”. Once I explain it makes sense.
Today’s rate update:
Thursday, August 01, 2013 10:30 AM
Yesterday the FOMC policy statement took the wind out of the sails for most of the market that was expecting the Fed would begin its withdrawal from the $85B a month of purchases of treasuries and MBSs beginning in Sept. Cutting to the bottom line; the Fed is going to start tapering, the question is when. As we have been noting, Bernanke will require more data to convince him the economy is gaining strength that is sustainable. Recent data from Europe and China as well as here in the US has been improving, Bernanke will want to make sure it continues before he triggers the beginning of the Fed’s withdrawal of support for long term interest rates including especially mortgage rates. Based on the wording of the policy statement yesterday, he apparently isn’t yet convinced. With no help from Congress and the Administration on fiscal help, Bernanke knows he holds the economic recovery in his hands—-make no mistakes now. We expect the Fed will begin tapering later this year as long as the economic outlook remains positive—and based on hard evidence from incoming data. September, based on the interpretation of the statement, is too soon for the Fed.