Why using a Licensed Mortgage Professional is better than using a bank.

I feel like I am singing to the choir on this, but there are many potential buyers that don't know the reasons going to a mortgage broker is better than going to a bank.

These buyers don't know that:

1. Going to a mortgage broker will prevent a buyer from hours and hours of online searching for products and rates. Also, the buyer will not be subjected to multiple credit checks for multiple banks which could result in lowering their credit score.

2. Experienced licensed Loan Officers and Brokers already have the relationships established with mortgage lenders and will help their clients avoid any income or credit pitfalls.

3. Mortgage professionals offer mortgage programs from lenders with lower wholesale rates compared to the limited higher priced products that the banks offer.

4. Loan rules and lending guidelines change frequently so borrowers need plenty of guidance. No need to fumble and stumble in the dark!

5. Mortgage brokers have a true incentive to provide their clients with the loan option best suited for their particular needs, not the bank's cookie cutter product. An overworked bank employee has little or no incentive to offer advice on specific programs and often leaves the customer guessing which way to proceed.

6. Loan officers are licensed professionals who are required to complete continuing education every year to maintain their license to originate loans, unlike a bank employee. Loan officers understand the importance of offering their borrowers the best loan to meet their needs, not what the banks want.

 At Kwest Mortgage, we are here to help buyers every step along the way. We understand that buyers differ from one another. We persistently focus to first understand the buyer's needs and then proceed to exceed your expectations through the highest level of professional conduct and "high touch" customer service.

Caroline's Weekly Market Review

Last week began as a decent week for mortgage rates. Ahead of Wednesday's highly anticipated Fed meeting, mortgage rates were a little lower on a week-over-week basis, as reflected in the weekly survey from Freddie Mac. Investors, however, pushed rates significantly higher after the Fed statement and press conference.

The Fed's massive bond buying program has greatly increased the demand for mortgage-backed securities (MBS). Since mortgage rates are mostly determined by MBS prices, the added demand for MBS has been a major factor in the decline in mortgage rates to historically low levels. Wednesday's Fed statement and follow-up comments from Bernanke provided the clearest signal yet that the extra demand from the Fed will soon begin to shrink. The Fed's forecast for economic growth and the level of unemployment have improved. The statement noted that the downside risks to the economy have diminished. Bernanke even went so far as to say that if interest rates increase "for the right reasons" it is a "good thing." Any investors who had been hoping for signs that the Fed would not soon scale back its bond buying program were very disappointed. Instead, the Fed signaled that if their economic forecasts are accurate, then the tapering of bond purchases will begin later this year and conclude in the middle of next year.

One of the main sources of strength in the economy which has helped convince the Fed that it's nearly time to taper is the housing market, and the data released this week continued to show improvement. May Existing Home Sales increased 4% to the highest level since November 2009 (when the home buyer tax credit was about to expire). Total housing inventory of existing homes available for sale rose 3%. May Housing Starts increased 7% from April. Single family Building Permits rose to the highest level since May 2008. The June NAHB Homebuilder confidence index posted a large increase to the highest level since April 2006.

This week, investors will be eager to hear speeches from Fed officials throughout the week. It will also be a busy week for economic data. Durable Orders, New Home Sales, and Consumer Confidence will be released on Tuesday. The final revisions to first quarter GDP will come out on Wednesday. Core PCE inflation, Personal Income, and Pending Home Sales are scheduled for Thursday. Chicago PMI and Consumer Sentiment will be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday.

Caroline's Weekly Market Review

Shifting investor expectations about the timing of Fed tightening worked in favor of mortgage rates last week. The economic data released last week had little impact. As a result, mortgage rates ended the week a little lower.

The Fed has used two primary approaches to stimulate the economy and to help push mortgage rates to historically low levels. Everyone has focused a lot of attention lately on the Fed's bond purchase program, which the Fed is expected to begin to scale back before too long. This program was initiated to provide additional stimulus after the Fed had cut the fed funds rate to near zero and could go no lower. Until recently, investors expected that the Fed's first hike in the fed funds rate would not take place until mid-2015. A shift forward in expectations for the first Fed rate hike has been one of the forces moving mortgage rates higher.

An article written on Thursday from a noted Fed watcher addressed the question of when the Fed will raise the fed funds rate. The article suggested that Fed officials do not agree with investors that economic conditions have pulled forward the likely timing of Fed rate hikes. Rather, Fed officials still expect that the first rate hike will take place long after the end of the QE program. This article caused mortgage rates to move lower at the end of the week.

Without a doubt, the big story this week will be Wednesday's Fed meeting. While expectations are low that it will take place Wednesday, we are at the point where the announcement that the Fed will taper its bond purchases could come at any meeting. Even hints about the timing likely would cause a large reaction. The most significant economic data will be Tuesday's CPI inflation report. The Consumer Price Index (CPI), the most closely watched monthly inflation report, looks at the price change for those finished goods which are sold to consumers. Housing Starts will also be released on Tuesday. Existing Home Sales will come out on Thursday. Philly Fed, Empire State, and Leading Indicators will round out the schedule.

Painful.

It is painful for me to lose loans to competitors. It hurts me when I don't even get a chance to give someone a quote because they have already been pre-approved by somewhere else. That is silly on the consumer's part because I have a feeling that our fees would have been much less. Luckily, the way that my manager set up the business, we really are able to offer consumers the best deal around and that is a great thing. I don't feel like a scheming sales person when I go to market myself because I can be honest in that regard.

When I find out that one of my local competitors is originating a loan, I think to myself "dang, if they would have just called over here, I could have saved them some money." When I find out that someone in my market is going through a National mortgage lender for financing - I literally feel sick to my stomach. When I hear that they are working with a Mortgage Originator through a 1-800 phone number, ouch. Don't do that to yourself or the other people involved in your transaction!!

Sure, they have more money than my company does to send you a million emails and snail mail marketing. In fact, they have people that are paid to do nothing but fill up your mailboxes with marketing pieces. Are they marketing to you because you are a valued customer? No, they are marketing to everyone that they have an email address/home address for. We don't have a marketing team, any pre-made fliers, any pre-written emails that I can push the forward button on. Nope, we have to come up with that all by ourselves in-between our regular work.

Why you should work with Kwest Mortgage Group:

1. There is value in the fact that I live and work in your community/state!! I have a lot to lose if I don't exceed your expectations throughout your loan process and a lot to gain when you leave your loan closing completely satisfied. It is so important to me to do a great job for you because your word of mouth is the most valuable business that I can receive. My reputation is everything in this business, so I will go the extra mile to make you happy with my services! If you have any questions a long the way, you can always reach me at the office and most of my borrowers have my personal cell phone.

2. Because I live in your state of South Carolina, I have a great understanding of your real estate market. I also know a lot about financing programs that will help you!!

3. Working with someone that you can get to know personally really cuts down on miscommunication and hassle. Working with us, you won't be just another number pushed through the steps. You will be a valued customer that will be guided through each milestone of your transaction.

4. Flexibility - We are not a one-stop shop with a small set menu of financing options. Lucky for me, we work with numerous lending partners which gives me the flexibility on getting you the best program, the best rate, and the best costs and overall the best experience.

5. I can't stress this enough - Personal Contact!!! What is more valuable than working with someone that you can contact anytime of the day? Even on the weekends!! It is great to work with a lender that you can go see face-to-face. I have been lucky enough to work with people in other South Carolina areas outside of Orangeburg and Calhoun county- and it is important to me that I provide them with the same service that a borrower right here in my own community receives. That is why I always return phone calls and emails promptly!!

Help me reach my goals!!

The tragedy of life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach. - Benjamin Mays

I was excited to start my career in mortgage at the beginning of this year. This has always been what I have wanted to do and I have enjoyed learning the ends and outs or the mortgage world. Things have been rocking and rolling the last couple of months! Things have taken off fast, and I am so appreciative of that. This evening, I took a look at the business plan that I made for myself back when I was finishing my Xinnix Officer School. I need your help to reach these goals that I have set for myself! Do you know anyone looking to purchase a home? If so, please let me know! I promise to provide unbeatable service. My number one priority is making sure that my borrowers get the absolute best deal. I am able to work with anyone purchasing or refinancing a loan anywhere in South Carolina!

At Kwest, I am committed to offering you safe, sound, and affordable home financing solutions. I hope to hear from you soon!!!

Survey Responses from 2 great Real Estate Agents this week: 

*Caroline Farmer was all over this sale from day one- actually she was ahead of everyone- which in the end was really great!

*As the representative of the seller in this transaction I was thrilled to have been kept in the loop and able to offer my client the assurances needed throughout the transaction.

Caroline's Weekly Market Review

Shifting expectations for the timing of the Fed's move to taper its bond purchases were the main influence on mortgage rates last week and caused extremely high levels of daily volatility. Stronger than expected economic data and comments from Fed officials caused investors to think that the Fed will begin to scale back its bond purchases sooner than previously expected. As a result, mortgage rates ended the week higher.

With a decline in the Fed's bond purchases in sight, and an improved outlook for global economic growth, investors have grown less willing to own bonds. Central bank bond buying helped bond yields decline to historically low levels. Following the financial crisis, investors accepted these low yields in order to receive the safety of government guaranteed fixed income securities. Over the course of this month, however, sentiment has shifted and investors are demanding higher yields to own mortgage-backed securities (MBS) and other bonds. Since mortgage rates are largely determined by MBS prices, mortgage rates have moved higher.

Historically, shifting inflation expectations have been the primary cause of changes in mortgage rates, but not this month. Normally, as inflation expectations rise, so do mortgage rates, and vice versa. In May, though, this relationship did not hold true. Inflation measures have been falling, yet rates have been rising. The April Core PCE price index released last week was just 1.1% higher than one year ago. Core PCE is the Fed's preferred inflation indicator, and it's far below the Fed's long-run inflation goal of 2.0%. The Core CPI inflation report released last week also showed declining levels on an annual basis. This shift from the fundamental relationship between mortgage rates and inflation shows the enormous influence the Fed has had on mortgage rates.

This week, investors will be focused on the labor market data. The ADP forecast for private sector job gains in May will come out on Wednesday. This will be followed by the weekly Jobless Claims report on Thursday. The biggest economic report this week will be the important Employment data on Friday. As usual, this data on the number of jobs, the Unemployment Rate, and wage inflation will be the most highly anticipated economic data of the month, and it will carry even more weight than normal due to how it will influence Fed policy. In addition to the employment data, ISM Manufacturing will be released on Monday, and ISM Services will come out on Wednesday. The Fed's Beige Book will also be released on Wednesday. Construction Spending, the Trade Balance, Productivity, and Factory Orders will round out the busy schedule.