A Note From Your Mortgage Broker Jay
Over the course of March, mortgage rates moved from 5.875% to 6.50%. That’s a massive shift in a short window, driven largely by geopolitical uncertainty and market volatility. My personal read is that this is a supply shock, not lasting structural change. I expect rates to work their way back down through the summer and finish the year in the mid-to-high 5s. We shall see. I monitor rates daily, which makes me a real treat at dinner parties, but as always, call me with any questions.
Keys to the Close
Last year, a first-time buying couple came to me nervous, uncertain, and not sure they were ready. Over the course of a year, I worked with them on multiple potential houses until they finally found THE ONE. We raised their credit score from 700 to 743, locked a great rate (6.125%!), and closed on their first home with just 5% down.
The score improvement alone saved them thousands over the life of the loan. But more than the numbers, what I remember is that they had a lot of questions. Good ones. And we answered every single one.
That’s the job. Getting you ready before you think you’re ready and then executing when the moment shows up.
Opening Doors: Bank Loan Officer vs. Mortgage Broker
A bank loan officer works for one lender. A mortgage broker works for you. That’s the simplest way to put it.
Brokers shop multiple lenders, access wholesale pricing unavailable at retail, and find the best fit for your situation rather than the easiest loan to process. More importantly, brokers are problem solvers. If your situation has any complexity — whether that’s self-employment, a unique income structure, or a jumbo loan — you want someone with real options, not a single answer.
If a bank can’t close your loan, there’s nowhere else to go. That’s not just inconvenient, it can mean losing the home or your deposit. A broker has other doors to open.
Beyond the transaction, your broker is your constant. Loan officers change jobs and move on. Your broker knows your history, looks out for your next move, and is still a phone call away years after closing. To a bank, you’re paperwork. To a broker, you’re a relationship worth earning and keeping.
The Self-Made Buyer: The Two-Year Rule, Explained
The two-year self-employment requirement is one of the most misunderstood rules in mortgage lending. Here’s what it actually means, and where the flexibility is.
The standard guideline asks for at least two years of self-employment history, verified by tax returns. But there are real exceptions worth knowing:
- One year of returns may be enough if you were previously in the same line of work as an employee before going out on your own. Lenders call this “same line of business,” and we can work with a year of your new income.
- Bank statement loans sidestep tax returns entirely. Instead of your adjusted gross income, lenders look at your actual deposits over 12 or 24 months. For business owners who write off aggressively, this can be a significantly better path. It’s often the best solution for self-employed borrowers who don’t show their true income on paper.
- A profit and loss statement alone can sometimes qualify you through certain non-QM programs, particularly for borrowers with strong assets and a clean payment history.
The common thread is preparation. The earlier we talk, the more options you have. If you’re thinking about buying in the next 6 to 12 months, let’s have that conversation now.
Off the Clock: Oahu with Kids (A Field Report)
Let me be very clear. Traveling with children is not a vacation. It’s a Trip. Like a Business Trip. Capital T.
The word vacation derives from the Latin concept of vacating responsibility (J/K, I made that up, but it sounds right.) Children do not allow for this. They are small, enthusiastic employees who require constant management, snacks, and negotiation. Trips with kids are memorable, productive, and exhausting. Vacations are for relaxing. Vacations do not include kids.
That said, I took my family to Oahu for spring break. Here’s what I can tell you, specifically if you’re traveling with children:
STAY: Sheraton Waikiki
Amazing location. Walking distance to restaurants and shopping, which sounds more glamorous than it is. “Restaurants” means places with solid kids’ “keiki” menus and strong Mai Tais for “Me Me” (Dad Joke High-five). “Shopping” aka Target, where you rebuy everything you forgot and add 37 snacks because snacks are a parent’s best friend. The pool and waterslide are massive and mildly chaotic — think “community parenting experiment.” Be prepared to lifeguard, referee, and possibly feed a child that isn’t yours.
Best part: it’s right on Waikiki Beach, warm water, mellow waves, and awesome for sandcastle-building. It’s not cheap, it’s not flashy, but for families, especially mine apparently, it works.
DO: Auana
A Hawaiian-centric Cirque du Soleil-style show, and both my 4-year-old and 9-year-old were completely locked in. Sit in the middle or back so you can catch the aisle action and the stage, plus the surprise bubble drop. Runs Wednesday–Sunday, and on weekends you can get $25 kids’ tickets for Aloha Family Weekends.
Eat + Sunset: House Without a Key (Halekulani Hotel)
Arrive at 5pm. Live Hawaiian music, perfect sunset, strong drinks, and surprisingly good pizza. There’s an open grass area next to the seating that functions as what I can only describe as a dog park for children. Highly recommend.
Pro Tip: The Inflatable Mattress Hack
My children sleep like spider monkeys in a bar fight, so we need boundaries that aren’t actual cages. Order a cheap inflatable camping mattress on Amazon and have it delivered to the hotel the day you arrive (include your name + confirmation number). Pick it up at the bell desk. Twenty-five dollars buys you something close to actual sleep, and you don’t have to pack it home.
Get Out of Waikiki: North Shore Drive
Rent a car. Go explore. Hawaii is actually paradise when you leave the lobby. Find a shrimp truck. Get a plate. Get shave ice. Use the promise of the “world’s best shave ice” as a behavioral incentive for the drive. Works every time as bribery is good parenting.
(Bring Snacks)
Real talk before I let you go: if any of this newsletter sparked a question about rates, what you qualify for, or whether now is the right time to make a move, that’s exactly what I’m here for. If someone in your world is thinking about buying or refinancing, feel free to connect us. I’m always happy to hop on the phone.
Always consult your CPA before making any decisions about income reporting or deductions. — Jay Bridges, Mortgage Lender, Priority Capital Corporation | 310-994-8900 | [email protected]