Shopping
for A Mortgage
SHOPPING AROUND FOR A MORTGAGE?
HERE'S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!
First: 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... 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 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
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. To receive an up-to-date weekly calendar
of weekly economic reports and events that may cause
rates to fluctuate, contact a CMPS 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
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, 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
|
