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get a written Good Faith Estimate
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In order to accurately compare loans from different lenders you need to: get a quote on the same day, on the same loan program & for the same interest rate.  Given all three of those being constant, compare who has the lowest lender fees. 

Interest rates can change multiple times per business day. They also vary depending on the specifics of your loan.  Rates are based on a loan amount of $200,000 (Jumbo's based on loan amount of $333,800 and APR's based on 20% down payment).

Some frequently asked questions about rates & mortgages:

• How are interest rates set?
• A free refinance?
• When is the best time to buy a home?
• Is there anything I can do if I have no equity in my property?
• Why do I need an appraisal if I want to buy and the seller wants to sell?

How are interest rates set?

The number one question we receive is, "Please give me your best rate quote", or something similar to that.  If you choose a lender based solely on the best rate quote, you're likely to get a big surprise later. There are thousands of lenders out there, but the truth is, mortgage rates, especially with fixed type loans, vary only slightly from company to company.  Rates between legitimate companies usually vary no more than 1/8% for the same overall cost.  Why is that? Banks, mortgage brokers and mortgage bankers get their funds from the same secondary market sources.  Simply put, the cost of money is dictated by these sources with rates changing one or more times per day--like stocks.  Most people think you shop for a loan like you would for a car.  Reading the paper for quotes doesn't work because the information is old by the time it gets in front of your face.  There are some advertisements that do quote slightly lower rates. At best, they lock the rate for a very short period of time, during which time you must close. This is usually 10 days. If you can't do it--you've lost the rate. Any lender, us included, can quote a slightly lower rate on a "short lock". Many other lenders do not lock until the loan is approved. While waiting for the approval, your rate is likely to change. Most of these types of lenders tend to have high "garbage fees" in exchange for being able to quote lower points or rates.  Low or no points with high fees is not a good deal at all, but many borrowers don't ask the right questions and focus only on the rate. And garbage fees are not deductible, whereas points are, making the effective rate even higher under those circumstances.  Adding a prepayment penalty can also lower the rate slightly.  Again, most borrowers focus only on the rate, not the mathematics.  Think MATH. The APR (annual percentage rate) can be used as a guide. The lowest APR may NOT be the best deal for you, however. Also, lenders are inclined to figure APR differently. With mortgage money, there are other factors to consider such as expected length of stay in your home, tax implications, opportunity cost, etc. The real cost of your mortgage is a combination of rate, loan points, other fees and actual terms, not one or the other and ONLY as it applies to YOU! Only work with a professional loan officer who knows the math.

There is generally only around 1/4% gross profit in mortgage money.  That's it.  If that is the case, how can there be a lender at 7% when everyone else is at 7.5% for the same TOTAL cost, on the same day? The answer is, there isn't.  The quote is designed to get you to apply.  Later on, when it comes time to lock in your rate, you'll get what everyone else has (or higher), but they still got your business, didn't they?  A rate quoted may be for that day only and cannot be locked in.  You don't need any special education to start selling mortgages. Having the title of "loan officer" does not automatically mean you're good at it. I'm sure you've heard the horror stories. We hear several every week and sometimes end up jumping in at the last minute to save someone's transaction. Most home loan applicants fail to shop correctly.  The more lenders they talk to, the more they get confused.  So, what do you do?  Once you weed out the people that are obviously on the high OR are lower than everybody else, choose someone that's competitive and that you trust.  Ask for meaningful references such as CPA's or Realtors.  Don't gamble with something as important as your mortgage.  Please take a look at our business philosophy, then decide. 

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A "Free" Refinance?

Simply put, a higher interest rate generates more commissions for the lender which are used to pay all of the refinancing costs. So, we can drop your payments WITHOUT affecting what you owe and without any costs.  Hey, why give it to the bank?  There are no hidden costs either!  Use this refinancing technique to dump your adjustable loan too. Get into the safety of a fixed rate before they go up again.  Of course, lower rates are available with costs as well.  Normal qualifying parameters apply.  So what if rates drop later??  So what!  It didn't cost you anything in the first place, right? You can do it again at those prices. Planning on moving in the next few years?  Refinance into a 3, 5, or 7 year fixed rate and save $$ before you move!  Use our on-line application.  You can also call us at (509)458-5626 or send us an e-mail at info@hagoodmortgage.com.

I'm not sure now is a good time to buy.  When is the best time to buy a home?  Is there some formula?

This question is a good one, but pretty broad.  There are a number of factors to consider when buying a home.  There are tax issues, long and short term goals, property location, financial considerations and quality of life issues.  Only a few people are qualified to offer reliable advice in these areas.  Some people in the financial field are better qualified than others, believe me.  Just like in lending, there are great loan officers and there are jerks who sound like they know what the are doing, but don't.  Surround yourself with good people when making a decision like this.  Include a CPA, loan officer and friends with experience in these matters.  DON'T get somebody out of the newspaper or off of some flyer without getting references.  The best references are CPA's, attorneys and Realtors.

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Is there anything I can do if I have no equity in my property? Are there refinances available?

That's a problem with some homeowners.  If your loan balance equals your property value (no equity), there ARE refinancing programs available.  If your balance exceeds your value, you may have to come in with cash to close unless you're willing to take a high rate.  Many times that just isn't worth it unless your current loan really stinks.  Some people "walk" from their properties, feeling that there's no point on paying for a losing investment.  Other people opt to negotiate a "short sale". or "short pay".  This is when your current lender agrees to accept a smaller amount of money than what is owed upon sale of the property.  There are some problems with this, however. Depending on your lender, they may not agree to a short sale.  When a customer is paying on time, they figure, why should they accept a smaller payoff of their loan balance?  Homeowners sometimes resort to making late payments so as to get the lender to agree to a short sale, if they do at all.  This tactic will definitely wreck your credit.  Believe it or not, a short sale mixed with mortgage lates is a lot worse than the short sale itself.  I mean for your future credit rating, a short sale is almost like a foreclosure to many lenders.  Even so, adding mortgage lates to that is the worst thing you can do credit wise.  Sure, you can get a loan, but the rate won't make you very happy.  But alas, sometimes there is no other way.  But remember, this credit will stay with you for several years and may very well affect your ability to get a good loan in the future, no matter how much money you make or have in the bank.  One word of advice.  Get an attorney who deals with short pays.

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Why do I need an appraisal if I want to buy and the seller wants to sell? We know the price is fair.

ANSWER:  Just because you want to buy a property for, let's say $500,000, doesn't mean that the bank will make a loan based on that amount.  There are many reasons why.  A lender always looks at a transaction thinking, what if we have to take this property back?  What if there's a $400,000 loan against it and it was really only worth $375,000? OK, what if it really IS worth $500,000. And no, they don't want to take your property back. Banks are regulated and audited.  They are not in the business of making loans so they can take properties back.  Every time they do, it's a big negative mark on their record.  Too many negative marks say to the regulatory bodies that this bank doesn't know how to make real estate loans.  That's not good if the bank wants to keep it's doors open.

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