First:
make sure you are working with an experienced, professional loan officer. The
largest financial transaction of you 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! 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. DO NOT 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. For an up-to-date calendar
of weekly economic reports and events that may cause rates to fluctuate, click
on the Summit Funding weekly market update button.) 3)
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 can change a rate called the "Fed Funds
Rate" or the "Discount Rate." These are both very short-term rates
that impact credit cards, credit lines, auto loans and the like. On the day of
the Fed move, Mortgage rates most often will actually move in the opposite direction
as the Fed change. This is due to the dynamics within the financial markets. For
more information and explanation, just give a call) 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 in
real 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. Would you work with a stockbroker
who is only able to grab yesterday's paper to tell you how a stock traded yesterday,
but had no idea what the movement looks like at the present time and what market
conditions could cause changes in the near future? No way!)
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. | 
