The education part has to start immediately, particularly with brand-new purchasers who might not know anything else about the mortgage process other than what the existing rates of interest are.
“I would say most brand-new buyers who concern me are really rate sensitive,” Shelton said. “However within the conversation that we’re having, that discussion turns to what is essential right now. Clearly, everyone focuses on the rate like it’s the deciding element, when, in reality, if you tell me you’re comfy paying $2,500 a month, and your home that you desire you can get for $2,500 a month, why is the rate stopping you?”
Lock, or don’t lock?
Another conversation that ends up being a huge part of the transaction is locking the rate, specifically when home loan rates are bouncing around as much as they have been over the last couple of months. Shelton stated that’s something she handles regularly.
“This is actually a very typical circumstance that we’re dealing with, even at the start of the year, when rates were a lot lower than they are right now,” she stated. “We don’t have a wonderful crystal ball to look ahead to tomorrow or next week or in 3 months from now. If we did, we would have an extremely different strategy.
“When I am having discussions with my clients, we attempt to move the discussion far from rate of interest and more towards payment. Your bank account isn’t paying a rate of interest; it’s paying a mortgage payment. So we want to ensure that you’re comfy with that payment.”