Consumer Tips: How To Use's Free Mortgage Shopping Tool

Mortgage and Lending with Stearns NMLS #232164 CA BRE #01380812 BRE 01380812 NMLS 232164 is now offering a free service to borrowers who are in need of a mortgage loan.

Here's how it works: You type in (anonymously) details about your situation, such as your home's value, your credit rating, what kind of loan you are looking for, etc., then lenders provide quotes to you and you decide who do go with.

Consumers should know that performs a background check on all the mortgage brokers who sign up for the service. They also verify that we're licensed. They provide a feedback system, which as time goes on, will allow borrowers to rate the lender as far as how the transaction went.

The concern is that some lenders will promise rates that are not "real" and when the borrower, especially in a purchase transaction is at the closing table, they'll be stuck with what they've been "baited and switched" to.

Before the feedback system is up and running, here are some tips from the CMPS Institute, a leading certification institution devoted to raising mortgage industry lending standards. To learn more about the CMPS Institute go here:

 Certified Mortgage Planning Specialist Logo

Shopping For A Mortgage Loan- Here's the inside scoop on how to do it right:

Always make sure you are working with an experienced, professional lender. 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 absolutely must be able to answer correctly. If they do not know the answers immediately leave and go 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 Fed or 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

2. What is the next Economic Report or event that could cause interest rate movement? A
professional lender will have this at their fingertips. To receive an up-to-date weekly calendar of
weekly economic reports and events that may cause rates to fluctuate, contact a Certified Mortgage
Planning Specialist professional today.

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 impactscards, 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. For more
information and explanation, contact a CMPS professional today.

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 probably not a professional with whom to entrust your home mortgage financing.

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 CMPS professionals 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.


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Mary Anne S. Daly

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