Shopping Around for Rates?  Here is how to do it Right!

First, make sure you are working with an experienced, professional equity manager.  The mere size of this financial decision makes it too important to place in 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 TO A LENDER THAT DOES.

1.  What are mortgage rates based on?

Seems like a basic enough question doesn't it?  You would be surprised how many lenders do not know, however.  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 that unusual to see them move in completely opposite directions.  DO NOT work with a lender that has their eyes on the wrong indicators.

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

A professional lender will have this information close at hand.  For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, please call me or visit, http://www.orlandomortgagepro.com/Economic_data.htm

3.  When Ben 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 move in the opposite direction as the FED change due to the dynamics within the financial markets.

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 lender with whom to entrust your home mortgage financing.

Be smart... Ask questions... Get answers.  Most likely, your home purchase is one of the largest acquisitions you will ever make.  You might do this only four to five times in your entire life... we do this every single day.  It's your home, your future.  It's our profession and our passion.  Let us be your guide... because every mortgage deserves a Pro!