4 Questions to ask your Loan Officer

Shopping Around?

Here's The Inside Scoop On How To Do It Right!

First: make sure you are working with an experienced, professional loan officer. 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 loan officer absolutely must be able to answer correctly. If they do not know the answers , RUN , don't walk, RUN, to a experienced mortgage professional 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 loan officer who has their eyes on the wrong indicators.

2) What is the next Economic Report or event that could cause interest rate movement?
An experienced professional will have this at their fingertips. For an up-to-date calendar of weekly economic reports and events that may cause rates to fluctuate, visit www.tjflodin.com, click on the Weekly Newsletter link and then hit the green MMG Weekly banner - this is a copy of my weekly newsletter, let me know if you want to be added to the weekly distribution list.

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, give me a call.

4) Do you have access to live, real time, mortgage bond quotes?
If a loan officer cannot explain how Mortgage Bonds and interest rates are moving in real time and warn 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 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!

Be smart... ask questions and 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 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 you and your best interest.

1st Advantage Mortgage, LLC - 747 N LaSalle Street 6th Floor - Chicago, IL 60654
Office Phone: (312) 867-5363 x255 Fax: (312) 654-7215 Cell Phone: (312)735-3419

Licensed Nationally

IAMB - Illinois Association of Mortgage Brokers