Shopping Around?

Are you shopping around for a mortgage? Whether you’re buying a new home or refinancing your existing one, it pays to define what is most important to you. I think our business is often viewed as a commodity and the advertising doesn’t usually help. But there is so much more.

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 FOUR SIMPLE QUESTIONS YOUR LENDER MUST ABSOLUTELY BE ABLE TO ANSWER CORRECTLY. IF THEY DON’T 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. Make sure you work with a  lender who has their eye on the correct indicators

2)   What is the next economic report or event that could cause interest rate movement? A great lender will have this information at their fingertips.

3)   When Bernanke and the Fed. “change rates” what does this mean? A professional will know that mortgage interest rates are not determined by what the Fed. does. The Fed. decisions are about short term interest rates such as credit cards, etc. Mortgage interest rates often move in an opposite direction from what the Fed. is doing. A mortgage professional will know this.

4)   Do you have access to live, real time, mortgage bond quotes? A mortgage professional will know what the most current rate for you is and educate you as to how mortgage interest rates change every day; often more than once.

                        Be Smart…Ask Questions…Get Answers!

I trust this has been of help. Look for Part II next week. Shopping around is your right and I encourage it. But be choosy about who you work with. Look for value added. If it happens to be me thank you in advance. I can be reached at (425) 818-2251 or by emailing paulm@legacyg.com. Have a great day!