Mortgage Spotlight – Optimistic Market Trends and the Importance of Pre-Qualifying for a Mortgage

Optimistic Current Market Trendswith a loan amount that they would be approved for.
Traditionally, mortgage rates have been very stableEssentially, a pre-approval will tell a potential buyer
and non-volatile compared to other financial rates.exactly how much home they can afford and give
However, due to recent market conditions, rates nowthem a starting point for everything going forward. In
change multiple times even in the same day. With allthe eyes of a seller, a buyer with a pre-approval letter
that said, rates are at historic lows and 2010 is one ofis a stronger candidate for purchase then a buyer who
the best times historically to get a mortgage. To takehas not started taking care of their financials.
advantage of this unique situation, finding a veteran of 
the mortgage industry is essential. A mortgagePlan Ahead and Avoid Buyer's Remorse
professional can help you watch rates carefully andEven in tough economic times, the conditions of the
notify you when rate conditions are optimal to meetcurrent real estate market make it a great time for
your desired financial goals.new homebuyers to plan and purchase their dream
Finding a good mortgage professional to work withhomes.  With home prices going back up, potential
takes time. According to Chasity Lousteau (Seniorhomebuyers should not wait too long if they are
Mortgage Broker for American Capital Corporation ofconsidering buying. Help yourself by not waiting until the
Los Angeles, CA), a good mortgage company canlast minute, and plan ahead with a qualified mortgage
offer you products both in-house as well as brokeringprofessional.
loans from top banks all across the county. Being ableAccording to Allen Cravello (President of American
to provide a mix of services allows potentialCapital Corporation), in a survey of recent home
borrowers to have a better chance of getting qualifiedbuyers in the Los Angeles area, one of the top
for a loan, as well as having more than one option tocomplaints from home buyers was they felt hurried
choose from.through the loan process and didn't feel they
The biggest uptrend right now in mortgage is thatadequately performed their due diligence on their
banks and investors are becoming more confident inmortgage. Essentially, they experienced buyer's
the market. This means banks are now offering moreremorse on the single largest financial purchase of their
products and in turn, it means potential borrowers nowlives! To avoid this problem, start building a relationship
have more options. The most noticeable area wherewith your mortgage broker the second you even start
products have reappeared are for jumbo loans, whichconsidering buying a home. Buying real estate is a large
is determined by a loan larger than $417,000 orfinancial decision and therefore time and care should
$729,000 depending on the county the home is in. Withbe put into finding a dependable and trustworthy
jumbo loans returning, it indicates that banks andmortgage professional to work with.
investors are optimistic about the market and the 
timing is good for homebuyers.Chasity Lousteau is a Senior Loan Officer for
 American Capital Corporation. She has over 15 years
The Importance of Pre-Qualifyingof professional experience in helping clients in her
Good real estate agents and home sellers will requirespecialty areas of: FHA loans, conventional mortgages,
the buyer to have a pre-qualification letter beforeand high-down or low-down mortgages. She can be
taking their offers seriously. Having a pre-qualificationcontacted at 310-252-7226.
letter means an underwriter at a bank has evaluatedYou can listen to Allen Cravello and Steve Guilino on
credit and the overall financial package of a potentialMortgage Spotlight Saturdays at 3:00 PM Pacific Time
buyer. In turn, the bank has provided that borroweron KRLA 870 in Los Angeles.