Why Loan Officers Kill Deals, Cost You Time and Money and Anger Customers

1st 2nd Mortgage Co. — Thu, 02 Jul 2009 09:28:08 -0700

NOT ALL LOAN OFFICERS ARE EXPERIENCED PEOPLE

I spent my whole life teaching and trying to make a Good Loan Officer. Sometimes I will have one or two that will really learn the business. But most of these so called Loan Officers that kills deals are not really experienced to do the job. Let's face it, Experienced Loan Officers can pre-qualify anyone as easy as 1-2-3 if they know what they are doing.

Via Novation Mortgage:

A good friend who has been in the business for many years asked a simple question of me today. It had mostly to do with credit score and what can be done. The answer was black and white - no room for gray - and his response was, "took the mortgage broker 3 months to figure that out. that's how long they tied up my listing!!!"

I have always given the truth even when the response truly does sting. When you give someone the facts and they say, "I'll just go somewhere else" or "well MY lender can ...". What I want to say is, "oh shutup you nitwit idiot" (because I'm human) but instead I say, "Best to you I wish you all the luck."

I can also tell you luck doesn't close loans. Neither do loan officers who lie to you, string you on and cost you time and resources. Not to mention end up pliffing off your customers.

I know for many years loan officers have "said anything to get the deal". I know this because I have had literally hundreds of people over the years come back to me, at or near closing or after the closing has been postponed umpteen times, saying, "You were right. They can't do what they promised." Of course the worst thing of all is when they promise you one thing, end up not being able to do it and countering with what I offered originally and you still going through with the deal ... that dignifies the way they treated you so they'll lie to the next person in hopes they'll settle for that treatment.

YOU CAN WALK AWAY AT THE CLOSING TABLE and the earth will not collapse around you. I know your agent wants their commission they have earned, the seller wants their money from the house they just skipped the last mortgage payment on and you have to be out of your rental house tomorrow. Guess what? You'll pay for that "bad" loan for many years so just calmly stand up, walk out, call the local lender who has an office you can drive to and go see them. Stop rewarding these liars for bad business.

Three common lies loan officers tell today:

I'm as busy as I have ever been

No problem I can get that done

We can close in two weeks (on a purchase)

Of course there are times when those are the correct answers. Here is a litmus test - if two or more experienced professionals give you one answer and the loan officer at mega-bank out in some state a thousand miles away tells you "sure, we can do that - we can do things nobody else can do" be very suspicious.

I have a sale closing coming up soon. Just after I locked the FHA rate at 5.25 (no dicount) on this purchase the father emailed and said "Everhome can do it for 4.75 with no discount and no origination". I knew that was not true because that rate was long gone. I also knew it wasn't true because that was about the best par rate ever and EVERYBODY gets paid. So I called Everhome and spoke with Jeff. Jeff was very helpful and curteous and laughed and said, "Sometimes the rates they advertise are a little outdated." I said, "Outdated? When did you ever do that rate with no points and no origination?" He said, "Me personally, never."

I used Everhome because I have the data to back it up in case somebody wants to challenge me on it. Not to throw Everhome under the bus because it is almost everyone who advertises (adverlieses) rates. If you see a rate or service advertised online you can almost certainly not believe it. Supposedly the FTC is taking care of that but I haven't heard anything lately. There are other names, too, who have promised the sky and couldn't even deliver a crack in the sidewalk.

BUT YOU DO IT TO YOURSELF - I know, I take the phone calls:

Me: "Thank you for calling Novation Mortgage, Georgia's FHA Loan Experts. This is Ken how may I help you?"
You: "I just want to see what your rates are today."
Me: "Fantastic, are you looking to purchase or refinance?"
You: "Uhm refinance. So what are your rates?"
Me: "Is this a home you are living in or an investment home?"
You: "Uhm it's the home I live in. What are your rates?"
Me: "That's great are you looking to take cash out or just rate and term?"
You: "For Pete's sake, dude! Just tell me your rates!!!"

What you just did was tell me nothing more than a lie was going to help you at all. What if you wanted cash out? Waht if you're looking for an FHA streamline? What if you want to go to a 15 year loan instead of a 30 or vice-versa?

RATES ARE SUBJECT to many variables. You need to be shopping for much MUCH more than the rate. So when you're really serious about service and cost that beats anyone you can name you're ready to deal with a mortgage professional and get the quality service you deserve. Or you can keep dealing with order taking operators at some mega-bank three states away. I digress.

So how are you to know?

Find someone you can trust in your LOCAL area.

Find someone who can give you CUSTOMER references (not just agent references).

Find someone who has a LENDER's LICENSE PERSONALLY (not crucial but helps).

Difference between Mortgage Bankers & Mortgage Banker/Brokers

1st 2nd Mortgage Co. — Fri, 25 Apr 2008 23:48:13 -0700

The best way is to ask the Mortgage Company if they are a Licensed Mortgage Banker or a Licensed Mortgage Banker/Broker. Mortgage Banker/Broker, are those company that can originate loans but when closed they broker it to us, the Mortgage Bankers.

BEATING HOLIDAY DEPRESSION

1st 2nd Mortgage Co. — Thu, 06 Dec 2007 11:12:53 -0800

The holidays are supposed to be a time full of joy, good cheer and hopes for a new year. Unfortunately, many people experience depression.

The holiday season is full of parties and family gatherings, but for many people, it is also a time of loneliness, reflection on past "failures" and worries about uncertain future.

There are many ways to deal with the potential sources of holiday depression, and here are just a few of them:

LET GO OF THE PAST.

KEEP EXPECTATIONS MANAGEABLE.

ORGANIZE YOUR TIME.

Feel free to add on my list...Thank you and HAPPY HOLIDAYS TO ALL..

I am new here

1st 2nd Mortgage Co. — Tue, 01 May 2007 21:56:10 -0700

I am not that computer savvy...so please bear with my ignorance!!!

Marcos's Blog

Why Loan Officers Kill Deals, Cost You Time and Money and Anger Customers

Difference between Mortgage Bankers & Mortgage Banker/Brokers

BEATING HOLIDAY DEPRESSION

I am new here