Mortgage Lender Won't Lock Your Interest Rate... What Now First Time Home Buyers? - YouTube

So my husband always gets nervous when I wear this dress and it's because it's my gladiator dress, yes

It's my Roman gladiator dress and he's like what I do, please no

And it's not just because he hates the way it looks 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 gonna 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 gonna 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 gonna 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 gonna 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. Why not? Have a great?