Mortgage company owner says it’s time for buyers to strike

By Michael Bradwell, mbradwell@observer-reporter.com

Sara Mohsin has a message for anyone who’s thinking about buying a house: Now’s the time to act.

Mohsin and her brother Zaf have operated privately held Mohsin Mortgage for more than five years. Based in Bridgeville, they opened an office in Southpointe’s Iceoplex a few years ago.

At first blush, the Iceoplex – the practice home for the Pittsburgh Penguins – may not seem like the ideal location for a mortgage business, until Mohsin explains that the place draws hundreds of families every week who bring their children to the complex for hockey practices and leagues.

In addition to being in a prime place to market home mortgages, there’s plenty to like about financing a home in these times, despite the economic downturn, Mohsin said.

“With mortgage interest rates dropping to 50-year lows, it has allowed many borrowers to cut the term of their loan from 30 to 15 years,” she said. “It has also provided many people a chance to consolidate their debt, as well as get cash out from the equity of their property.”

But the time frame for homebuyers to take advantage of low rates won’t last very much longer, she added.

The window of opportunity in the mortgage market will close in the months ahead as average interest rates – which were in the 4 percent range at the time of this writing – have hit a record low.

“The low rate is here because there’s a recession, but the rate won’t stay here” once the economy begins to pick up, she said. “We will have growth again.”

She added that people may also regret not capitalizing on taking advantage of the $8,000 federal tax credit for first-time buyers, in addition to the $6,500 credit added for move-up buyers.

“You can take advantage of the low rate and save the money,” she said. “Saving money is exciting.”

She noted that her company, which is a wholesale mortgage broker, doesn’t compete with local banks for business. It works with more than 30 lenders nationwide that offer some of the lowest rates in the industry.

“We do the math; we know the ins and outs of the market. We work on behalf of the borrower, that’s what our service is about.”

Licensed to write mortgages in eight states and commercial loans in 37 states, Mohsin also provides financing for commercial aviation loans.

But educating consumers about mortgages is a top priority for the company, Mohsin said. “We offer a service to people from all walks of life.”

For instance, she added, there are a number of lending facts and myths that borrowers need to be aware of as they prepare to apply for mortgages.

“Some people may have a gap in employment but have good credit scores,” Mohsin said, adding that approval for a federally backed loan is not necessarily based on credit scores.

“There are also high-net-worth people; they own restaurants and other commercial businesses. Then there are people who want a $200,000 home but don’t qualify from an income standpoint,” Mohsin said, adding that part of the education process is to also encourage people to think seriously about living within their means.

“Don’t live with anxiety when you don’t have to,” she said.

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