HERE’S THE INSIDE SCOOP ON HOW TO DO IT RIGHT!
First: make sure you are working with an experienced, professional
Mortgage Planner. 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 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?
(Oh, and it's not the 10 year Treasury Note!)
2) What is the next Economic Report or event that could cause
interest rate movement?
3) When Bernanke and the Fed “change rates”, what does this
mean… and what impact does this have on mortgage interest
rates?
4) Do you have access to live, real time, mortgage bond
quotes?
Call me for the answers to these questions!
(888) 956-7060 ext. 222
or
(410) 668-7077 ext. 222
24 hours a day 7 days a week 365 days a year!
If a lender cannot explain how 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!
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Be smart... Ask questions… Get answers!
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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 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.
Once you are satisfied that you are working with a top-quality
professional mortgage advisor, here are the rules and secrets you
must know to “shop” effectively.
First, IF IT SEEMS TO GOOD TO BE TRUE, IT PROBABLY IS. But
you didn’t really need us to tell you that, did you? Mortgage money
and interest rates all come from the same places, and if something
sounds really unbelievable, better ask a few more questions and find
the hook. Is there a prepayment penalty? If the rate seems incredible,
are there extra fees? What is the length of the lock-in? If fees are
discounted, is it built into a higher interest rate?
Second, YOU GET WHAT YOU PAY FOR. If you are looking for the
cheapest deal out there, understand that you are placing a hugely
important process into the hands of the lowest bidder. Best case,
expect very little advice, experience and personal service. Worst
case, expect that you may not close at all. All too often, you don’t
know until it’s too late that cheapest isn’t BEST. But if you want the
cheapest quote – head on out to the Internet, and we wish you good
luck. Just remember that if you’ve heard any horror stories from family
members, friends or coworkers about missed closing dates, or big
surprise changes at the last minute on interest rate or costs…these
are often due to working with discount or internet lenders who may
have a serious lack of experience. Most importantly, remember
that the cheapest rate on the wrong strategy can cost you thousands
more in the long run. This is the largest financial transaction most
people will make in their lifetime. That being said – we are not the
cheapest. Of course our rates and costs are very competitive, but we
have also invested in the systems and team we need to ensure the
top quality experience that you deserve.
Third, MAKE CORRECT COMPARISONS. When looking at estimates,
don’t simply look at the bottom line. You absolutely must compare
lender fees to lender fees, as these are the only ones that the lender
controls. And make sure lender fees are not “hidden” down amongst
the title or state fees. A lender is responsible for quoting other fees
involved with a mortgage loan, but since they are third party fees –
they are often under-quoted up front by a lender to make their bottom
line appear lower, since they know that many consumers are not
educated to NOT simply look at the bottom line! APR? Easily
manipulated as well, and worthless as a tool of comparison.
Fourth, UNDERSTAND THAT INTEREST RATES AND CLOSING
COSTS GO HAND IN HAND. This means that you can have any
interest rate that you want – but you may pay more in costs if the rate
is lower than the norm. On the other hand, you can pay discounted
fees, reduced fees, or even no fees at all – but understand that this
comes at the expense of a higher interest rate. Either of these
balances might be right for you, or perhaps somewhere in between. It
all depends on what your financial goals are. A professional lender will
be able to offer the best advice and options in terms of the balance
between interest rate and closing costs that correctly fits your
personal goals.
Fifth, UNDERSTAND THAT INTEREST RATES CAN CHANGE DAILY,
EVEN HOURLY. This means that if you are comparing lender rates
and fees – this is a moving target on an hourly basis. For example, if
you have two lenders that you just can’t decide between and want a
quote from each – you must get this quote at the exact same
time on the exact same day with the exact same terms or it will
not be an accurate comparison. You also must know the length of
the lock you are looking for, since longer rate locks typically have
slightly higher rates.
Again, our advice to you is to be smart. Ask questions. Get answers.
As you can imagine, we would not be encouraging you to shop around if we were not
pretty confident that we feel that we can give you a great value and serve you the very
best.
Call me now and I can arrange a mortgage planning session.
So call me now at (888) 956-7060
Talk to you soon, Paul
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Listen to my FREE 24 hour recorded message,
"HOW YOU CAN FINALLY STOP DEBT FOREVER!"
1 (888) 956-7060 ext. 222
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Got a question? Call me at (888) 956-7060
or contact me NOW!
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The Local Home Loan Specialist
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The right way to shop for a mortgage!
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