HERE’S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!

First, make sure you are working with an experienced, professional loan officer. The largest financial transaction of your life is far too important to place in the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way. But, how can you tell?

Here are FOUR SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS…RUN…DON’T WALK…RUN…TO A LENDER THAT DOES!

1) What are mortgage interest rates based on? (The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury note. While the 10-year note some times trends in the same direction as Mortgage Bonds, it is not unusual to see them move in opposite directions. DO NOT work with a lender that has their eye on the wrong indicators!)

2) What is the next Economic Report or event that could cause interest rate movement? (A professional lender will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, just give us a call.)

3) When the Federal Reserve Board “changes rates”, what does this mean… and what impact does this have on mortgage rates? (The answer may surprise you. When the Fed makes a move, they are changing a rate called the “Fed Funds Rate”. This is a very short-term rate that impacts credit cards, credit lines, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed change due to the dynamics within the financial markets in response to inflation. Contact us for a more detailed explanation.)

4) Do you have access to live, real time, mortgage bond quotes? (If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time and warn you in advance of a costly intra-day price change, you are talking with someone who is still reading last week’s newspaper and probably not a professional with whom to entrust your home mortgage financing.)

Be Smart… Ask Questions…and then make sure you Get Answers!

This is one of the most important financial transactions you will ever make. You may do this only four or five times in your entire life, but we do this every single day. It’s your home and your future. It’s our profession and our passion. We’re ready to work for your best interest.