Mortgage bankers are optimistic about the coming year, predicting more buyers and sellers will jump into the real estate market. Steve DiMarco, president of Key Mortgage Services, has weighed in on what broker associates can expect in 2016.
On Interest Rates
“If you were looking for the bottom of the market to make a move, you missed it,” said Steve. “Let your buyers and sellers know that rates will go up this year, most likely reaching 4.5 percent for a 30-year fixed-rate mortgage.”
Preapprovals and prequalifications are becoming a hot-button issue in our online mortgage and post-TRID world. Information prospective buyers choose to provide in the preapproval stage may not be what the mortgage underwriter will use, giving you a skewed view of whether or not someone is a good candidate for a loan. “Partnering with Key Mortgage can help you and your clients stay out of trouble with bogus and inaccurately performed preapprovals,” said Steve.
While lenders have already been working on new processes surrounding TRID regulations, broker associates who weren’t active in the fourth quarter may not be up-to-date on the changes in the mortgage industry. As the market picks up at the beginning of the spring season, this confusion has the potential to cause significant closing delays.
“If your plan is to wing it and let the cards fall where they may, you could be taking a big risk come closing day,” said Steve. “The best thing you can do to make your deals go smoothly is to have a team of professionals in place that you can call at anytime and trust with your transaction.”
If you’d like more information about mortgage trends and best practices, please contact a Key Mortgage loan officer.