A true Mortgage Professional will reveal their value from your very first interaction. By taking the time to understand your short and long term financial objectives, Mortgage Professionals will structure a loan program tailored to your specific financial goals. Mortgage Professionals will also have a true understanding of financial markets and what affects the markets will have on your overall financial. Here are two of the four simple questions that your Mortgage Professional must be able to answer:
- What are Mortgage Interest Rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds. You may also hear the 10-year Treasury note. The 10 year Treasury note can move in the same direction as Mortgage Bonds, but it is not uncommon to see them move in the complete opposite direction either. In helping judge where rates are headed, you do not want to work with a mortgage person who is keeping watch on the wrong market indictors.
- What is the next Economic Report or event that could cause interest rate movement?
A true Mortgage Professional should have this answer for you without hesitation. Mortgage Professionals are not fortune tellers, but having the market knowledge to know where rates are expected to move is one of the most important job requirements of being a Mortgage Professional.
Next time, I will give you the last two questions to ask your Bay Area Mortgage Professional. Until then….keep asking questions!
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