Prepare buyers early for potential mortgage rate changes and explain how shifts can affect affordability and loan approval odds. Emphasize calm, informed guidance throughout the process to reduce buyer anxiety, especially for first-time homebuyers. Encourage immediate contact with lenders when rates change to obtain updated loan estimates, verify whether a rate is locked, and review new payment projections if no lock exists. Provide clients with the right questions to ask and follow up after lender conversations. Serve as the buyer's steady partner, offering reassurance, practical steps, and coordination with financial professionals.
Mortgage rates that rise higher than expected before financing is secured can deal a serious blow to a home's affordability or a client's chances of loan approval. Regardless of where rates head, your role as a real estate agent is to remain calm, informed, and proactive. Here's a practical guide to help you support your clients when mortgage rates shift higher or lower before closing.
Prepare clients early in the homebuying process by explaining the possibility of a rate change, and its potential impact on them. Buyers often feel somewhat out of their depth when it comes to financing, as evidenced by a new study by Clever Real Estate, which found that 85% of boomers and Gen Xers, and 86% of millennials, believe mortgage lenders should provide more financial education for buyers. As their closest partner in the transaction, they'll also likely turn to you for advice and support.
If rates change before closing, encourage your client to contact their lender immediately to obtain an updated loan estimate, confirm whether they have a locked rate, and discuss new payment projections if they do not have one. Make sure they know which questions to ask, and follow up with clients after they've spoken to their lender.
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