Orion’s brokers work with borrowers of all shapes, sizes, backgrounds, credit profiles… The list could goon and on, but suffice it to say you’re experienced. Our AEs are also knowledgeable about interest rates, and as we move toward Memorial Day weekend(already!) it is a good time to discuss the rates your clients are seeing.
Brokers know that the absolute best rates available to borrowers shown in advertisements are for those who probably have squeaky-clean credit, high income, low debt ratios, a30% down payment, and want to buy a property that appraises above contract price. This perfect alignment of all contributing factors just doesn't happen that often in real life. Good brokers take the time to explain that rate sheets from some competitors usually show these same "best available" rates and are intended to help Realtors give buyers some idea of current rates for different types of loans, but don't always mention the qualifying standards that must be met to get these “teaser” rates.
With any advertisement for enticingly low rates, Orion’s brokers remind clients to be sure to read the fine print, which includes the assumptions and disclaimers made in order to legally offer that particular rate to the public in print. As you know the mortgage interest rate that a borrower actually receives from a lender takes into account the purchase price, down payment, borrower's income, assets, and credit score and report, the property's type and use, and any details specific to the transaction. Best available rates are available only to a very well-qualified borrower for a fully conforming, low LTV loan, so it is extremely important for clients to understand that each real estate transaction is unique, and therefore the interest rate available to finance any particular transaction is equally unique.
Realtors should help explain to your clients how rates work before quoting a rate off a lender's rate sheet. Sometimes they do, sometimes they don’t. The client may interpret the rate pulled off this week's generic rate sheet as what they can get if they put an offer in on the property showed to them. Due to Federal laws, telling a buyer about a particular rate without giving the necessary caveats and disclaimers could put a Realtor in violation of these laws. Orion is intensely focused on risk, and with current regulations, the resulting decrease in lenders' risk tolerances has made for a very conservative lending environment. To eliminate deception and mistrust, speak to one of our AEs if you have questions about Orion’s rates, and to help provide an accurate, real-world analysis of the deal and the interest rate for which your client may really qualify.