How Does the Mortgage Loan Process Work?

How the Mortgage process works: Get a Loan Fully Approved

While the borrower is talking to his Loan Officer who is essentially accountable for the service he provides to the borrower. At any given point in time, there are several people working behind the scenes on a borrowers Mortgage. A Loan Officer typically ties them all up into one and acts as a Single Point Of Contact for everyone working behind the scenes and to the borrower. It's team work.

Lowest Mortgage Rates Today: Contact California, Texas Mortgage loan

why no one can predict the mortgage rates

When we wake up in the morning and if we are looking for refinancing or purchase. We type in what is the lowest mortgage rate today.

As funny it may sound. Yes, the rates go up and down but truly for any bank or lender is the yield against that particular rate which is moving up and down every minute that is a deciding factor to offer that rate to the particular borrower based on his loan scenario.

No bank lender or broker with a line of credit has money enough to keep on doing loans. Money is bought at a price or interest just like borrowers borrowing money in order for lenders or banks to lend money on mortgage to borrowers. So it's the yield and borrowers loan scenario that determine what rate one would qualify for.

Now we can go a bit further to understand the volatility of the rates and why no one can predict mortgage rates.

Consider NYSE ( New York Stock Exchange) to be a hub where money is the commodity that is being bought and sold constantly for a price or interest rate.

So if on a particular day or particular moment in a day too much money is being dumped, money as a commodity would become cheap and as a result, rates would come down. If too much money is squeezed out of NYSE the money being a commodity would become expensive and rates would go up.

This is still a very basic explanation but truly this is all how it works.

The bond market, the stock market, Inflation, Feds prime rates, Geo Political situation. All this drives the demand for money up or down based on risk. Risk always exist and it's this risk movement or speculation based on the risk that drives rates up and down.