SHOPPING
AROUND?
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 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… RUN… DON’T
WALK… RUN… TO
A LENDER THAT DOES!
- 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.)
- 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,
click the green MMG Weekly banner above.
- When
Greenspan 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 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, just give us a call)
- 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
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. |
Shane Hancock
Mortgage Consultant
Primary Residential Mortgage
410-668-8222 ext 102
410-668-7344 fax
Contact Shane
|
