Learning the Monthly Mortgage Cycle

One thing that’s very rarely considered among people looking for a mortgage, especially first time home buyers, is the monthly timing of lenders and the overall market. The mortgage world works on a monthly cycle that’s continuously rolling over, and knowing a few details about the ins and outs of this process can make your mortgage experience that much simpler and more straightforward.

As a premier mortgage broker in Utah, Altius Mortgage is here to help you with little bits of insider knowledge like these. How does the monthly mortgage cycle work, and how can this affect your experience? Let’s take a look.

Start of the Month

The beginning of the month is typically the time where lenders will be at their most devoted to acquiring and activating new mortgages. This is when loan officers will be most eager to return phone calls, answer emails and be proactive about reaching out to potential clients.

For the most part, this is because the cycle dictates this as the “business-gathering” period of each month. Officers should have already closed all their new loans for the previous month during the final week or 10 days of that previous month, and they’re now eager to begin racing toward their next quota. In general, the beginning of the month is by far the best time to apply for a loan if you have convenience and ease of communication with the lender in mind.

Middle of the Month

In the middle couple weeks of the month, lenders are primarily going about the business of gathering various documents and arranging loans to be signed and completed at the end of the month. This is the paperwork phase, if you will. This isn’t to say that loan officers simply won’t accept new applications during these periods, but rather that more of their attention is generally focused on this middle phase.

End of the Month

The end of the month is closing time. Officers are racing to get all their new loans from that month closed out to meet their general quotas, and clear their slate as much as possible before the new month begins. This is the worst time to file for a new mortgage, especially if you’re looking for quick approval or any individual attention.

Now that you have a basic understanding of the mortgage cycle, you’re ready to learn more about all our professional mortgage services at Altius Mortgage. Speak with one of our brokers about your options today.

Explaining Common Mortgage Misconceptions

Securing a mortgage that’s right for you and your family is a complex and detailed process, part of the reason you come to Altius Mortgage. Our brokers will work with you to find the best rates and loan setup for your home loan, and guide you through the tougher parts of the process.

A big part of our service to you involves steering you clear of common misconceptions within the mortgage industry. Many of these are myths that have somehow gained steam over the years, myths which could be very damaging to your finances. Here are some of the most common ones, plus the truth behind them.

Interest Rates

The housing crisis of the mid-2000s spawned one particularly noisy myth: That fixed-rate loans are always preferable to adjustable-rate loans. Because adjustable-rate loans and their variability were part of what spawned the collapse of the market, they’re often treated like the plague. But there are many cases where adjustable-rate loans might be best, just as there are cases where fixed-rate loans make more sense.

Additionally, it’s common for people to assume that the rate you’re quoted on the surface is the same as your final, actual rate. Mortgage rates are calculated on a daily basis – if you get your rate during pre-approval, there’s nearly a guarantee this rate will have changed by the day you’re actually signing the paperwork. To stay up to date here, make sure to keep on top of the lender with accurate rates.

Lender Choices

Mortgage laws prevent lenders and real estate agents from colluding for client recommendations, but there’s nothing illegal about agents having preferences. Know that your broker is a vital outlet, and the more reputable and respected in the industry they are, the better it might be for you. Altius Mortgage has reached the heights we have in part because of our reputation for legitimacy and reputable dealings.

Credit Scores

Credit scores are generally displayed using three numbers, representing three major American credit bureaus: Experian, TransUnion and Equifax. The common misconception here is that whatever your highest number of the three is, that’s the mark lenders will look at – this is false. They’ll typically average the score, and some might even look at your lowest score. Additionally, if you’re applying with a co-borrower, lenders will almost always default to the lower credit score between the two of you to lock in your final number.

Want to learn more about these common misconceptions, or any other part of our mortgage services? Speak to one of our brokers today.