ARE YOU SHOPPING AROUND FOR A LENDER?

Here’s Some Information On How To Do It Right!

(This info may seem a little too esoteric for some but here
is a link to The Mortgage Reports where Dan Green
illustrates the importance of what we list below.)

First, make sure you are working with an experienced, professional mortgage consultant. This transaction is far too important to place into the hands of someone who is not capable of giving proper advice and troubleshooting the issues that may arise along the way. But how can you tell?

Here are four simple questions a good lender should be able to answer correctly. If they do not know the answers, continue to look for 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. You won’t want to 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.

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 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 will often actually move in the opposite direction as the Fed change due to the dynamics within the financial markets. For more information and/or a detailed explanation, fill out the form below.

4) What is happening in the market today and what do you see in the near future? If a lender cannot explain how Mortgage Bonds and interest rates are moving at the present time, as well as what is coming up in the near future, you are talking with someone who is still reading last week’s newspaper, and may not be the professional you want to entrust your home mortgage financing to.

A few other things to consider when choosing a lender are to make sure they have been in business long enough to give them the experience needed to maneuver in a challenging market. And make sure they provide you an upfront good faith estimate outlining all costs associated with your loan.

Fill out the form below and we will send you at least two qualified lender referrals that can provide references.