Report: Deciding on a Mortgage Lender?
Deciding On a Mortgage Lender?
HERE’S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!
First: Make sure you are working with an experienced, professional loan officer. As one of the largest financial transaction of your life it’s 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?
THESE ARE FOUR SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DON’T 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 Backed Securities, it’s not unusual to see them move in completely opposite directions. If your lender is not watching what Mortgage Backed Securities are doing, they have no idea what interest rates are doing until it’s too late. They are reacting to interest rate changes, not protecting you before the rates change. 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, email me at josh@joshmettle.com and I will send you my weekly upcoming economic report.
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 can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very short- term rates that impact credit cards, Home Equity 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 in response to inflation. For more information and explanation, just give me a call.
4. What system do you use to access live, real time, mortgage bond quotes? If a lender cannot explain how Mortgage Bonds and interest rates are moving in real time and warn you in advance of a costly intra-day rate change, you are talking with someone who is still reading yesterday’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!
TIP: Be cautious of family and friends who claim to be PART TIME LOAN OFFICERS willing to do your loan at a discount.
In today’s market there is not room for part timers, things are changing faster than anyone can keep up with on a part time basis. I spend on average 10 + hours a week reviewing changes to underwriting requirements, available programs and market fluctuations. I do this to ensure that I never make a mistake and cost someone their home loan.
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 only do this four or five times in your entire life… but I do this every single day. It’s your home and your future. It’s my profession and my passion. I’m ready to work for your best interest.
I hope you found this educational and you actually put this information to work for you. You are successful and affluent clients; you deserve the service of a consummate professional.
If your MORTGAGE ADVISOR can not answer these questions with complete confidence and certainty then I would like the opportunity to show you in 15 to 30 minutes how I can save you tens of thousands of dollars.
“Our experience with Josh Mettle could not have been better. The purchase date of our new home and the closing date on the sale of our old home created a very tight time line. Josh's experience and expertise made the transition flawless. He kept us informed during each step of the process and was more than willing to answer all of our questions. This included a thorough "line by line" explanation of all financial documents. Additionally, Josh was able to monitor current market trends and lock us into a mortgage rate that was below what we expected. I would highly recommend Josh Mettle and the team at Citywide Home Loans to any prospective home buyer.”
Rand Stover,
Federal Bureau of Investigation
Chief Investigator
Josh Mettle is a top producing mortgage lender specializing in financing Physicians, Dentists and Medical Professionals in Salt Lake City, Utah. Check out his site http://www.utahphysicianhomeloans.com/ for medical professionals. Josh is also a fourth generation real estate investor, and owns a number of rental homes, apartment units and mortgages. If you're ready to buy or sell residential real estate, get Josh's latest free tips, tools and newsletter at http://www.joshmettle.com. Utah Real Estate Professionals can keep informed by visiting Josh's Mortgage and Real Estate Blog at http://www.joshmettle.com/blog/
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