November 30th, 2007 2:01 PM by BILL WILBANKS
It takes a little effort to get a Great Rate!
Long story made short, waiting until the "day of" is usually not the best way to get a great or even good mortgage rate. What is? Read on...
A seller on a purchase transaction usually requires that you make application immediately, but certainly with 5 days or so of the accepted contract offer. That doesn't give you much time to shop for a mortgage or your best rate.
Rates are subject to change with market conditions at any time until locked. So, even on a refinance they can move while you are shopping for a lender. Most rate locks are 30 to 45 day locks in the market. Besides that, lenders with the best rates will most often require the completed loan package be delivered to them within 10 calendar days of the registration and rate lock or the lock is canceled. That does not give you much time unless you have planned ahead.
Smart shoppers gather their loan documentation in advance, subject to loan disclosure and the appraisal order. That way if they have not already applied with us or another firm, they have it ready to provide the day they want to lock a mortgage rate. Don't risk losing it because you can't provide a complete application package that day. Don't count on LUCK! Make your own luck. BE READY TO TAKE ADVANTAGE OF A GOOD RATE!
Bill Wilbanks / www.OrlandoMortgageMasters.com