The maze made easy

As the real estate activity picks up, more and more buyers are now shopping around for loans to take advantage of the low interest rates and this affordable buyers market. Many buyers start with their local bank, but soon get embroiled in a slow process and overwhelming paperwork. With escrow stalled and interest rates precarious, it’s understandable that buyers seek alternatives to the corporate maze of a bank.

 The primary function of a bank’s loan officer is to lend only the company’s money. The bank makes all the decisions as to the terms, rates, criteria and whether or not they want to underwrite the loan. Since banks are large corporations or are part of a larger conglomerate, they are on their own schedule and agenda.

 Mortgage brokers, like Delta, offer a variety of lending options for the buyer and do the bulk of the legwork and paperwork. Services are tailored to a buyers’ unique situation. As a small business with our homes and livelihood in the community, we have a vested interest in getting local buyers and investors the property or home they wish to own.

 One of our clients recently wrote a review about us on Yelp. “I used to wonder what mortgage brokers ‘brought to the table’ and why I would continue to use one in the Internet Age,” David K. of Grass Valley wrote. “The amount of work that Delta has done quietly in the background for me in the past came to light during my most recent transaction which I did with a large bank.”

 Are you experiencing a frustrating lending process? We can make the lending maze easy so you can capture the great buying market before it’s too late. Just let us know.

The lowdown on interest rates

Interest rates have been at historic lows for quite a while now. In fact, they’ve been holding steady for so long that it feels like the way of life.  As with most things, however, all good things come to an end, and that is looking to become the fate of these all-time, low rates.

 While I don’t have a crystal ball to predict a timeline, I do see signs that an upward trend is coming in the near future. The market has been waiting for positive news to make its move, and very recently there has been good news for the housing market as well as for corporate America.

 Just a few days ago, there was an Associated Press article about companies reporting strong first-quarter profits based on actually earnings rather than earnings from downsizing. Consumer spending, according to the article “Rosy earnings show that corporate America is back,” is on rise. “It’s a story of legitimate growth,” said a U.S. economist.

 On the home front, our local newspaper reported that the western Nevada County real estate industry “has been brisk – reflecting activity across the nation” (www.theunion.com, 4/30/10). And a few weeks ago, the national news was filled with March’s spike in new home sales across the country.

 The tax incentives along with the historic low interest rates seem to have been the successful formula for breathing life back into the marketplace. Now that there’s some momentum and positive news on many levels, we’ll soon start to see interest rates inch up.

 Are you one who has been considering a consolidation of an equity loan into a fixed rate? Or are you still sitting on the fence thinking about buying a home? Don’t wait any longer. Leave us a comment to tell us what your goals are so we can help you take advantage of a super rate before it’s too late.