When I see something written by someone else that I completely agree with, I like to share. We've had enough buyers who insist on using a lender who "is a friend" from back home, or who is offering the best rates on the Internet to fill a dumpster. Sorry, but as much as you believe someone from from Milwaukee or Los Angeles can do you a great service on financing your home purchase in Breckenridge or Keystone, it ain't always true. We actually had an LA lender turn down a loan (at the last minute, of course) because the purchase was a log home - "too unusual" was the underwriter's curt opinion. Well, duh! LA is not the mountains! So, here are some questions recommended by one of our local, trusted, lenders, Wendy Paulus. =============================== 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 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 also called Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury 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 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. Jobless claims, consumer confidence index, stock market impact, etc. 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 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 actually move in the opposite direction from the Fed change, due to the dynamics within the financial markets. Wall Street. Mortgage bonds are NOT bank products; they are Wall Street traded securities. 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 (yield) are moving at the present time as well as what is coming up in the near future, you are talking with someone who is not a professional with whom you can entrust your home mortgage financing. While none of us has a crystal ball, your lender should be able to provide you with current market data, upcoming reports that can impact rates as well as historical perspective. 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. I do this every single working day and have for more than 13 years . It’s your home and your future. It’s my profession and my passion and I’m ready to work in your best interests. Wendy Paulus _________________________________________ Want to buy or sell a SnowHome in Summit County? Please visit our website. All the property listings are there. When you live or visit here, you will know "Snow Place Like Home". | 
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