Mortgage Lender Won’t Lock Your Interest Rate… What Now First Time Home Buyers? (VA Home Loans)
It’S cuz, he knows I’m, usually in a mood., Oh right, a mood. Okay. So last week I got so much hate on my page. And the reason I got hate is because well let me be honest. Lenders hate me. A lot of lenders hate me. Some lenders love me, But there’s, a lot that hate me and the reason they hate me is because I’m explaining everything in English. I know it’s so much harder to rip people off when they understand what you’re doing go figure and we all know No one likes a tattle tale.. So look I’m that annoying kid in class. That’s, a tattletale Tattletale., So let’s, just some more tattletaling. Shall we Okay? So today, I’m going to talk about a couple reasons: a lender may not walk your loan, because I’ve had two transactions in the last two weeks Where I ended up with purchases that were extreme rushes because the borrower had been promised a rate by their lender. They were never locked and lo and behold, as they got closer to close., The lenders rate went up Right.. So the most important thing, if you get anything out of this video is You need a gladiator dress. Just kidding is that if you are not locked your rate, They’re quoting means Nothing. It means nothing until you’re locked. I could say I’m gon na get you a strawberry pie rate with 27 scoops of ice cream, because That is the same way.
. It has zero nothing.. Mmm. Sounds good right. Okay, so, if until you are locked, Your rate that they are quoting you is, nothing means nothing. So why would a lender not lock you, Okay, let’s, talk about a positive reason. A lender may not walk you. I did this recently with a client Andreea, hi, I’m drea and Basically she was looking at a manufactured house, The manufactured house when she got into contract.. The pricing was not good, It was the midst of kovat, and I was seeing with my pricing at least that what I would usually offer, Like usually I’d, be in the mid trees.. I was in the mid fours and I was like whoa. This is not normal. This is not something I see every day.. I think this is covin related.. Can we wait? Can I can we watch the market and I went through the pros and the cons with her like? Could rates go up? Yes, could rates go down. Yes.? Do I think that this is a temporary Reaction to the market and we may see better pricing? Yes, and in her case you know, I watched every single day to make sure that rates weren’t going above that, But I was really lucky in that. We ended up walking her at two point: eight, seven, five. So the day she walked in the door., It was four and a half.. We locked her at two point: eight, seven, five: Okay, that is what it’s really good.
, But we had the conversation because no matter There’s, no guarantee that I could have gotten that rate lower.. I thought I could based on my knowledge as a lender. I thought it was very possible that I could, and it was because it was a segment of loans that I was seen Perform in a different level than I was used to okay. However, there are a lot of lenders, not Joaquin loans, for reasons, unlike that, okay and we had a full conversation That’s the important part, if your rate is not being locked, You need to understand why. Why is my rate not being locked? What are the rates right now? Why aren’t you walking my rate? Why you demand that you have a right to know that it’s not., Oh, the lender, knows best. I don’t want to know what is them if I’m, not locking someone’s rate, then someone needs to say to me Why aren’t you walking my rate and I’ll. You know that doesn’t happen because I walk everyone the first day easily, But we have a conversation. Okay, so a couple reasons why lender may not be lucky you’re right, Let’s start with the sleaziest and I’m gon na make some enemies here, But you know I’ve sleazy lenders. If you want to hit a big dislike on my thing, Go ahead, Bring it on and if you’re so actually appreciates learning about this stuff hit like because apparently there’s like an algorithm and yeah.
I guess I need to pay attention to that now.. So here we go They’re liars yeah for sure there are lenders where, if you say I’m talking to three lenders – and you know I’m competing with rate., They might offer you a lower rate. So they get your business but they’re, just not locking you, because they can’t really give you that rate so they’re either a hoping that you get towards the end of the transaction and you get stuck and you don’t call another lender or the seller won’t. Let you have a contract or They’re, hoping that it will work in their their favor They’re, hoping like, oh well, I’m, not in two and a quarter on being a yet But I’ll just say I am, and maybe that would work out., No guys! No, If you are in contract on a house – and you like the rate, the lenders quoting demand, that they lock it and If they tell you they can’t, lock it.. You need to say why I want this lock today.. Why can’t you lock it? Okay, now with brokers, sometimes they can’t lock immediately because they have to have a full package to the investor That’s, something they should discuss with you. If they’re pushing you for docs and saying I can’t walk dogs, I can’t love to have dogs, You better get dogs to them fast and then the moment they of those dogs. You need to say. Okay You’ve got the full package.
. Can we lock now, Like you, guys, have to follow up on this stuff, Because this is your money we’re talking about and Assuming that the other person has your best interest at heart, That’s like assuming a used car salesman, has your best interest at heart.? Actually, that’s not fair.. I actually like some used car salesmen it’s like Assuming I mean you just can’t assume anyone has your best interest at heart.. Sorry, it’s dart world We live in sometimes so you definitely want to make sure that if you like the rate they’re, quoting and they’re, not locking it., Why why? Okay? Now You also want to try to get make sure that you’re locked., I usually like to lock people. I mean rates, are so good right, now., It’s, immediate, and we have the ability to read it once during the process, So I’m really comfortable, walking upfront.. But if they’re saying you need to be two weeks in, you need to understand that Hey look! If you have a 30 day contract and they’re, not gon na even lock you till day 14 You’ve kind of stuck unless the sellers super cool You’re going to be in a position where you have to close with that lender and then talk about refinancing Into a Lower rate later. I’ve got a couple of those to where it’s like Hey Chan, they’re, quoting us that am, I gon na – know it’s high, But they can’t get out of the contract because the seller doesn’t want to extend the escrow.
So you really want to get that rate locked as close to a upfront in the in the Process as possible and if they’re not locking it. You know. Like the example, I gave you with aundrea, you need to know why, and it needs to make sense to you, because My dad always said Ready for it ready for a wrong quote.. He said Jenny. If you want to go gambling, you gamble with your own money. You don’t gamble with other people’s money, and I have always looked by that principle. I’Ll gamble with my money, if I want to, but if it’s your money it’s not my place to gamble it for you It’s my place to tell you what works and what doesn’t work and what I think and offer you suggestions. But ultimately it is your money. So it is your choice to Gamble. Now, if you hear that barking, that is my truly annoying dog Muppet. If we’ve talked on the phone I’m sure you’ve heard her bark as well. Cova is really made her special um, But the bottom line. Is you really want to make sure you know why the lenders not locking your rate? I was talking to a buddy recently and I was like dude what’s going on with this certain segment of lenders. I’M. Getting so many calls from borrowers where the lenders are not locking their rate and he’s like oh Well, Jen, the closer they get to the end, the higher their yield spread premiums are so they can make more And look I’m, not saying every lender does that, but I’M saying there’s stuff like that happening in the industry, so you want to make sure if a lender is not locking you, they have a legitimate reason and it’s, not just so that their Pockets get fatter at your risk.
Gambling your money., So I hope this has been super helpful, as always questions I’m happy to help in any way I can, if you want to chat, Please schedule a time on my calendar link: emails, crazy for me right now, guys I’ve got like every single company. In the United States trying to sell me stuff, because my email is public and like waiting through that and trying to Get to you guys half the time I respond a week later and I feel terrible because I want to talk to you guys. I want to help in any way I can. I want to educate you guys, and I want you all out there, making lenders stay True to their world word world to stay true to the world. So please, if you want a chat schedule on the calendar, if there’s no days available just try again the next day, It’s, usually on a two day, rolling calendar.. So thanks for watching, I hope this helped and I’m sure I’ll get a lot of hates for this. But It’s Tuesday.