What you ought to know (#1)...

My client is quoting a great rate for his home loan, can I trust that he´ll get what he thinks he´s getting?

In general, you can´t rely on the price quote from any source until a lender locks in the price of the specific deal. This usually means that your client has submitted a loan application.

Prices quoted on billboards, the internet, and television, do not deal adequately with the individual borrower. They assume, among other things that your client has good credit, sufficient income and assets to meet the lender´s requirements, and can fully document their income and assets. They also assume your client is purchasing a primary residence, and will not have a second mortgage, and will be putting down 20% as a good faith deposit. Many lenders will quote rates that are only good for a limited number of days, whereas the normal escrow goes 30 to 45 days.

Price quotes in the media also cannot deal with the market volatility. Most mortgage lenders change their prices daily, generally in the morning after the secondary markets open, and sometimes they will make adjustments during the day as well.

One big misconception is that rate and points are what are important. But, rates and points ignore the fixed fees that are charged by lenders. What are those additional costs and how much is your client paying for that "great rate"? Quite often, those "great rates" are a way to rope your client in, and then charge them exorbitant fees.

Bottom-line, if the rate your client is quoting is "too good to be true"...it probably is. You should have them talk with Arrowhead Home Loans.