Is Your Lender Qualified?

You May Be Well Qualified, But Is Your Lender?

A Quick Test to Make Sure that You Have Found a Mortgage Professional!

You must be sure that you are working with an experienced, professional loan officer. An unfortunate fact of the Lending Industry is that there is no licensure or testing required to be called a Loan Officer. What is likely the largest financial transaction of your life is far too important to place into the hands of someone who is incapable of advising you properly and unable to guide you successfully through the issues that may arise along the way. But how can you quickly determine if you have found a Mortgage Professional?

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 monitors the wrong indicators.)

2. What is the next Economic Report or event that could cause interest rate movement?

   (A professional lender will have this information at their fingertips. For a current calendar of weekly economic reports and events that may cause rates to fluctuate, visit Mortgage Whys - Market Conditions and click on “Mortgage Market Guide Weekly” then the green MMG Weekly banner).

3. When Alan 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 short-term rate that impacts credit cards, credit lines, auto loans, etc. Mortgage rates most often will actually move in the opposite direction of the Fed change, due to financial markets dynamics. For more information and explanation, just give us a call or email and Ask Mike, the Home Loan Expert.)

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 currently moving, as well as what events are on the horizon, you are talking with someone who is out of touch with the financial markets, and who is probably not a professional with whom you should entrust something as important as your home mortgage financing.)

Be smart… Ask questions… Get answers!

More likely than not, 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.
You May Be Well Qualified, But Is Your Lender?