Nashville Real Estate Forum

Weekend Market Update

Jan. 3-4, 2009

Although the stock market wrapped up its third worst year in history in 2008, equities have been working their way higher to form a bottoming pattern since late-November lows. The Dow Jones index fell 33.8% in 2008, ranking behind only 1907 (down 38%) and 1931 (down 53%). There was a major banking system crisis in each of those years.

Mortgage interest rates remain in a range of historical lows, but they also put in a bottoming pattern to end the year, rising slightly from the extreme low spike of Dec. 17.

Procrastinators need to get mortgage loan applications and supporting documents to me ASAP to get in position to lock a low rate and snag this historic opportunity to refinance. Don’t get complacent believing these rates are going to last forever. And don’t fall in the trap of “I saw a quarter point lower rate one day last month, and I’m waiting to see that come back.” That’s like saying, “I saw XYZ stock at $15 on Oct. 10, it’s a great buy at $18 now, but I’m waiting on $15 again.” If a refinance benefits you at these levels, follow through now. Look at your big picture.

Here’s a mortgage industry inside secret that is hard to convey to the public: Get your loan approved, get the appraisal done, and get the loan ready to close BEFORE I lock your rate. Lenders offer better pricing for a loan that is ready to close vs. a loan that is just getting started.

Ditto for prospective buyers: Get your loan documented fully now so that I can write a solid pre-approval letter and help you negotiate a better deal. Do not wait until you find a house you want to buy and then scramble as the Realtor writes a contract not knowing what loan program you need, what downpayment you truly have and if the seller needs to pay some of your closing costs.

You need to confirm your best financing approach so your Realtor can write the contract accordingly…..and for greatest impact, you need my pre-approval letter to be presented by your Realtor at the same time he or she presents the contract---not a week later.

This is one area where you can apply a pinch of self-discipline and set yourself up to save thousands of dollars over many years. Like many things in life, you prepare before the moment gets urgent. You fix the roof on a sunny day---not when it’s pouring rain. You may have heard me pose this question---Would you rather be standing at the station when the train pulls in? Or run chasing it down the tracks after it has pulled away?

30-Year Conventional Fixed
5% $200,000-$432,500

FHA-100% VA

5.5% $100,000-$226,100

100% Guaranteed Rural Housing w/no MI

5.5% $100,000-$432,500

30-Year Jumbo w/no MI

5.9% $432,550-$750,000

Call for free pre-approval and to discover

the best financing for you!

...by Gary Moore

Cell: 615-579-8658 Toll-free fax: 866-321-6513

"About the time we can make ends meet, somebody moves the ends." -- Herbert Hoover

Visit my mortgage website:

http://www.BrentwoodHomeLoan.com

(0% points, 1% origination, 30-day lock, subject to program. Market Update informs on market trends and is not a quote for a unique borrower.)