How can you be sure you’ve got the right mortgage broker as you shop around?
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 into 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 4 simple questions your lender ABSOLUTELY must be able to answer correctly. If they don’t have 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 Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes 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, visit www.pdxloan.com/economicreport/ and join the weekly distribution list for MMG Weekly – this is a copy of a weekly newsletter on current Economic Reports.)
3. When Bernanke and the Fed “change rates”, what does this mean… and what impact does this have on mortgage interest rates?
(The answer may surprise you. When the Fed makes a move, they can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very shortterm rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the fi nancial markets in response to infl ation. For more information and explanation visit Google or research online further).
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 in real time and warn you in advance of a costly intra-dayprice change, you are talking with someone who is still reading yesterday’s newspaper, and probably not a professional with whom to entrust your home mortgage financing. Would you work with a stockbroker who is only able to grab yesterday’s paper to tell you how a stock traded yesterday, but had no idea what the movement looks like at the present time and what market conditions could cause changes in the near future? No way!)
Be smart... Ask questions… Get answers!
More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life… but a reputable experienced mortgage broker does this every single day. It’s your home and your future. Choose someone who makes it their profession and passion, ready to work for your best interest.
Once you are satisfied that you are working with a top-quality professional mortgage advisor, you'll want to continue with the 5 rules and secrets you must know to “shop” for a home mortgage loan effectively. Visit http://www.PDXLoan.com for a complete report on the 5 mortgage shopping secrets.
Source: http://www.ArticlePros.com/author.php?Ed Bisquera
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