We find ourselves moving through January, with a lot of time is spent inside reading, listening to the radio, watching TV, or on our computers. And with all of those comes advertising, including ads for home loans.

Orion’s management would like to remind brokers to tell clients that the absolute best rates available to borrowers shown in advertisements are for those who probably have squeaky-clean credit, high income, low debt ratios, a 30 percent down, and want to buy a property that appraises above contract price. Experienced brokers know that this perfect alignment of all contributing factors just doesn't happen that often in real life.

Rate sheets received from mortgage companies usually show these same "best available" rates and are intended to help real estate agents give buyers some idea of current rates for different types of loans, but don't always mention the qualifying standards that must be met to get these “teaser” rates.

With an advertisement for enticingly low rates, your clients should be sure to read the fine print, which includes the assumptions and disclaimers made to legally offer that particular rate to the public in print. The mortgage interest rate that a borrower actually receives from a lender takes into account the purchase price, down payment, borrower's income, assets, and credit score and report, the property's type and use, and any details specific to the transaction. Best available rates are available only to a very well-qualified borrower for a fully conforming, low LTV loan, so it is extremely important for buyers to understand that each real estate transaction is unique, and therefore the interest rate available to finance any particular transaction is equally unique.

Real estate agents should explain to a potential borrower how rates work before quoting a rate off a lender's rate sheet. The client may interpret the rate pulled off this week's generic rate sheet as what they can get if they put an offer in on the property shown to them. Due to new Federal laws, telling a buyer about a particular rate without giving the necessary caveats and disclaimers could puta realtor in violation of these laws.

Reputable brokers and lenders are intensely focused on risk, and with current regulations, the resulting decrease in lenders' risk tolerances has made for a very conservative lending environment. To eliminate deception and mistrust, borrowers should work with a good loan broker so he or she can provide an accurate, real-world analysis of the deal and the interest rate for which the buyer may really qualify.

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