Shopping Around?
First: Make sure you are working with an experienced, professional loan officer. One of the largest financial transactions of your life is far too important to place into the hands of someone who is not capable of advising you properly because of lack of experience. You want someone who can troubleshoot 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 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 oppposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.
2) What is the next Economic Report of Events 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, call LoanStar Financial directly at 619.544.6444.
3) When Ben 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 line, auto loans and the like. Mortgage rates most often will actually move in the opposite direction as the Fed changes, due to the dynamics within the financial markets. For more information and explanation, just give me a call at 619.544.6444.
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 anticipated in the near future this person is most likely not a professional with whom to entrust your home mortgage financing.
More than likely, this is one of the largest and most important financial transactions you will 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.
Carl Spiteri
Mortgage Consultant
Certified Liability Advisor
Carl@LoanStarFinancial.com
