Are rates going to drop.........

No one knows for sure. Being able to predict that is like being able to say who is going to win the world series in January. There is one thing that is certain and that is that rates are volitle. So what should you do if you are shopping for a mortgage or still need to refinance? Following these tips will help you get the best rate possible.

1. Get your paperwork together. Rates move quickly and if paperwork has already been started on your file you can move quicker and take advantage of a low rate. Typical items required would be paystubs, W-2's, tax returns and bank statements.

2. Make sure your credit is ok. Check your credit report and fix any problems ASAP! Even small things can mean a difference in your rate and eligability for a mortgage. If there is a discrepincy work with your mortgage professional to get it corrected. Doing it on your own can be a lengthy and frustrating process. The credit company I work with can fix an error and get a re-score in as little as 5 business days (intead of the 60+days through the 3 different major agencies.....and you have to repeat the process 3 times).

3. Decide what rate makes sense for you and don't hesitate to lock if it becomes available. Once you determin what rate you need to get it is a smart to stick to that decision. Many people want to gamble that rates will go lower but that plan can backfire. Many borrowers that hold out for another .125% never get that rate and miss out on their original target rate.

 Yes rates could fall and create another record low. The stock market could have another meltdown, or another major bank may collapse, or the country make sink even deeper into recession. These factors could cause rates to go down but are things things you want to hope for? You could save a couple hundred dollars a month on your mortgage but it might cost you 50K in your 401K. The best thing that we can hope for is that the government can keep rates low and stable enough for the housing market to make a positive move on the road to recovery.

Bottom line.....rates are low now. Make sure you are able to take advantage.