Are You Working with an Experienced,
Professional Loan Officer?
Your mortgage is the largest financial transaction of your life, and it is too important to place in the hands of someone who is not capable of advising you property and troubleshooting any issues that may arise along the way.
Here are 3 simple questions your loan officer MUST be able to answer:
1. What are mortgage interest rates based upon?
The ONLY correct answer is mortgage-backed securities or mortgage bonds, NOT the 10-year treasury note. DO NOT work with a loan officer who has their eyes on the wrong indicators.
2. What does it mean when the Fed changes rates and what impact does this have on mortgage interest rates?
The answer may surprise you. When the Fed (the Federal Reserve Board) makes a move, they can change a rate called the "Fed Funds Rate" or the "Discount Rate." These are both short-term rates that impact credit cards, home equity lines of credit, and auto loans. 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 in response to inflation.
3. Do you have access to live, real-time, mortgage bond quotes?
If your loan officer cannot explain how mortgage bonds and interest rates are moving in real time and warns you in advance of a costly intra-day price change, you are talking with someone who is still reading yesterday's newspaper, and probably not a professional within whom to entrust your home mortgage financing.
If your loan officer doesn't know the answers to these questions,
RUN . . . DON'T WALK . . . to one that does.
Let Me Help You Save Money!
Todd Bookspan, MBA
Certified Mortgage Planner
602.522.9494 ext 201
Todd@BookspanTeam.com
