Borrowers looking for Mortgage Refinance has created somewhat of a phenomenon during uncertain economic times. Mortgage rates have dropped after the Federal Reserve announced its plan to buy mortgage-backed securities to loosen the tight hold on consumer lending.
With the U.S. Government initiating the purchase of mortgage-backed securities this has reduced rates even further. All of this activity has contributed quite a bit to the mortgage finance business and has added to the struggle lenders were experiencing not long after the financial downturn forced lenders through a layoff period.
It has been reported that consumers contacting lenders for mortgage refinance have been unable to speak to a live person and are only left with the option of leaving a message for a return phone call. Some frustrated consumers are unable to simply leave a message as lender mailboxes and voicemail are unable to handle the call volume, not to mention the mortgage refinance agents. As things are starting to cool down in the mortgage industry we see the lenders starting to even out as far as their work load goes.
The mortgage finance surge has found lenders under-prepared during a time when they could really maximize on the opportunity to make up for the lull in previous months. So I wonder if it is possible to be prepared for such an event in the future. With unexpected delays in applications following up with prospective customers, understaffed lenders scurry to service consumer requests for mortgage refinance. We see this could not have been a pleasant time for lenders.
Lenders had to pull staff from other departments to handle the demand for mortgage refinance. Consumers are worried about the possibility of rates going back up before they can lock in. The history of fluctuating rates proves there is great chance this could happen again as rates did change from one hour to the next.
I believe the best advice to give in this situation would be to contact as many lenders as it takes. Be in touch with someone that can get to the point of locking in the rate quicker than the rest, without compromising everything that encompasses processing the loan.
Some prospective customers were told to apply on the internet after getting through to a live person. For consumers that do manage to reach a lender it would be wise to know the most recent rates available. Some online lending sites do not post the best rates for fear of being bound even as rates increase.
Now is a good time to be in touch with connections directly related to the lending industry or connections with a real estate agent that can act as a liaison between the lender and customer looking for a mortgage refinance. Keep in mind there is a good possibility the lender may not reply at all to the message or when the online application was submitted. With business booming for lenders, it would be smart to pursue and secure that magic number before it is lost whether they are as busy as they were at the beginning of the year or not.
