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Ready Set Sold with Bryan Vogt #38-02: Dave Hohe: Interest rates are increasing

February 17, 2018

Welcome back to Ready Set Sold I’m your host Bryan Vogt and with me today I have a expert in blending, Sir Dave Hawaii of New American Funding gave thanks for rejoining us we were talking about the last segment one of the things that kind of shows in my mind on the role stateside of our market being so strong is that rates are actually going up that’s correct right that is correct that is kind of the buzz in our industry right now is rates have gone up over the last couple of months the market has been very volatile when I talk about the market I’m talking you know stock market and some other the other market indices but the rates have been trending up it’s nothing to be alarmed about it’s just a natural correction historically.
Rates have been at their lowest point over the last eight to ten years which is unheard of and the market is just correcting itself some to account for the booming market and also the federal funds bank has Federal Reserve Bank excuse me has raised the short-term rates for the first time last year in the last several years and you know they anticipate maybe doing it again this year is what was what I’m hearing so and I think it’s important though as I said before is it usually means this is a stabilization of the market – that things not only in our area in the Columbia no Fallon Illinois and Edwardsville Sky Force Base Mascoutah Belleville Swansea and the list goes on in the trees it means that the market is really gearing up and I think that’s important to know.
So with some goodness some bad and like you said you know having that rate increase we’re seeing a little bit more buyers it doesn’t mean you can’t buy something later down the road but we’re seeing more and more buyers being aware of that and it’s important that they take care of it now because we don’t we don’t know where rates are going to go I would totally agree with that I have a lot of clients that I’ve either pre-approved already or that I’ve spoken with that are just kind of taking the wait-and-see approach thinking rates are going to come back down because that has kind of been what happened for the last several years so I completely understand that but all indicators that I’ve seen is that they’re not going to in the short-term so it’s really important that if you are looking to get pre-approved or looking to make an offer on a home that you do it sooner rather than later.
Because again I don’t anticipate great scope rates excuse me going down anytime soon you know they’re still in low by historical standards but you want to get the best opportunity for yourself so acting sooner rather than later to me seems like the smart thing to do and you know the thing you mentioned too is locked in meaning is locked in and maybe kind of explain what we talked a little bit more about that to listeners of how it was the process of getting locked into a rake yeah it’s simply locking a rate means you are you’re locking that rate in on that specific day for that predetermined time whether it be a 30-day close or you know 15-day close for instance it locks in that rate so you are guaranteed that rate cannot go up from there.
Some people choose to what’s called floater rate which is simply meaning they’re not locking the rate and kind of playing the market hoping it’s going to come back down but a lot of times when you gamble you’re kind of gambling with your financial future because you could be stuck with a higher rate for the next you know ten to thirty years depending on how long you lock in your rate for so our excuse me of what term you choose for your mortgage so it’s really just important and again getting the best rate is certainly important but getting your loan closed is more important getting into the house that you really like is you know but for the most important self you know and are into and I think it’s important to note that there are some wonders there we say it and just with any profession that maybe aren’t as good.
I don’t have the abilities to we’ll understand what’s going on sometimes that’s lack of experience lack of knowledge and there still has that element out there and I think that’s why getting with someone such as you Dave and new American funding becomes so important is because with the years of experiences you have well this is a business if we me and David talked about joked about we always say we’ve seen everything and then we see something different but but that being is using about 95% of what a what’s out there and the other 5% well it’s just going to happen and that’s really important when you’re picking one dream n absolutely you know what I’ve seen time and time again is you know a person that calls.
Let’s just say X Y Z Bank and ask what’s your rate they get quoted rate without that bank taking the time or the effort to really gather the information necessary to truly put together a plan and a strategic advantage for that client in other words offering them the best possible program for them and their family not just throwing a sterol a break that there may or may not qualify for out there and you know then at that point that customer really doesn’t have anything other than you know something that was told to them over the phone and we really take our time to really put together the best possible opportunity for that client and I love what you said that I think it’s really important to highlight it and that is strategy and I think that’s important for our listeners to understand.
We talked about it earlier in the last segment about the idea of just pop it down making some phone calls and as you mentioned it earlier too about your checking rates out that you want a lender that is going to literally take some time with you and that you’re going to have a strategy and what’s going to work best for you and that’s a situation also if you’re a seller I often talk with sellers and specially with a hot market like that – it’s never a bad idea to start talking to a lender the day you put your house on the market or even a week beforehand you start putting a plan together on you know what could happen how you going to do is what type of loan you’re going to do so that you have that working knowledge also and he kept really important thank you thing.
I can’t emphasize enough Bryan how important it is because again you know I’ve been doing it for a long time not to keep hitting on that but you know it’s so important for there to be the synergy in the transaction between the buyer you know us the agent us as the lender there’s a title company involved and appraised writing there’s a lot of moving parts but our job is to make that as seamless as possible and that’s where the communication and the planning you know I really like the buyers to be involved in the whole process not to bog them down with anything but I want them to know every step of the way where we are what we need what the expectations are I want everybody to be happy at the end I mean that is my main goal and you know really dry digging into there once and need is the first step.
So I think that’s important but on the same token I think it’s important for people understand it’s still a simple process okay it’s so simple process when you have a when you have a well again to the experienced lender like Dave it’s still a simple process to go through but it’s like anything else you know this is a business where something goes wrong something is missed something simple as missed unfortunately can have some very bad consequences for people and I think that’s the important part is it’s something that you want to take some time with but all in all it’s a simple process that weren’t you understand the concepts and the strategies and once you understand the buyers these are the sellers that’s looking to buy it becomes much simpler correct that is correct yeah I would agree with that.
There’s just a lot of things that we deal with but the you know buyer wouldn’t have to necessarily know about or be involved with but I just like to keep them you know in the loop so to speak with regards to expectations with time and whatnot because it is just a time-sensitive transaction but I think we’re experts as far as that goes and that’s true too I mean like I said there’s always that balance between the two but I think I think again that’s where experience becomes knowledge and yes you know comparable rates that’s important too but sometimes that gets lost in the shuffle and we see that on the buyer side and surrender the selling side that the rate is one thing and that is important and you mentioned Dave but again one of the situations is making sure you’re getting the right loan you’re getting into right situation that’s going to work for you.
Kind of like the tools in the toolbox and you want to have that experience that you guys offer at New American Funding so with that we’re running out of time here and I carry you over there’s going to be talking about that approval letter and the importance of it especially in a hot market.
You are listening to me Bryan Vogt. This is Ready Set Sold.

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