Do you remember when you purchased your first home? If you wanted to find out what the going mortgage rates were, you simply made a couple of quick phone calls. You could easily compare rates: 30 or 15 year fixed rates, or a 1-5 year ARM.

All that has changed! Pricing a loan has become more complex, as virtually all lenders now subscribe to “risk based pricing.” Your rate will be calculated based on your credit score, the amount of your down payment, the amount of debt you carry, and the type of property you are purchasing. Your call for a rate quote will probably generate a series of questions from the lender, including your short-term and long-term plans.

The good news is that there are many more mortgage products available than ever before, offering you better choices and solutions. There are opportunities for borrowers with credit issues, with little or no money down, with unique employment or income situations; for borrowers juggling a purchase and a sale, moving to a new area, or changing jobs. Wading through the multitude of programs and rates, however, can be daunting. It may be difficult to determine on your own which loan product is the best for your given set of circumstances. Because of all the variables, comparing rates and programs can be extremely challenging.

The time you spend upfront making the right decisions, will ensure that the loan process goes smoothly and that you end up with the right loan. Yes, more choices require more time and effort. So, before your start your home search, take advantage of your professional resources: your mortgage broker and your financial planner. You will then be able to find the best rate and the best product, customized just for you. It may take a little more than a click of a mouse, but for most of us, this is the most important financial decision of our life.

Pat Reiniger
Sonoran Mortgage Corp.

480-609-1903