Purchase Price vs Payment. what's missing??????

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

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How many times is a client left in the dark?  Clueless, because they don't ask the right questions? That they have been told they have been pre-qualified. As a client, you are like.....Great....Awesome.... Fantastic....  now I am ready to buy that $200,000 house.

 

But wait, your realtor wants you to talk to their lender. That person starts to ask more questions. Oh my god..... the client is now upset with you, the lender, because they now realize ......  for more, please read this

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Rainmaker
201,658
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP

Hi Jeff, Thanks for posting this. I run into this So many times.  We have high Property taxes here(as I hear you do in NJ) and it takes many people down on purchase price by $10's of thousands.  Thanks for letting your agent's client know the truth!  It's tough to explain this to clients when "the expert LO" has told them differently.

Thanks to all lenders who are up front and honest!

May 17, 2007 12:35 AM #1
Rainmaker
223,971
Laurie Mindnich
Centennial, CO
That looks like one happy little girl in your photo!  I wouldn't want to tackle your business in the current climate- it seems that in order to gain business, both the real estate community and lenders are doing some grasping.  The end result is a dissatisfied and disappointed customer- better to have them get with someone like you right out of the gate.  Saves everyone (especially the client) time and energy.
May 17, 2007 12:38 AM #2
Rainmaker
159,463
Dave Sulvetta
Dave Sulvetta, ReMax Connection, Gloucester County Realtor - Sewell, NJ
Realtor
where have you been?
May 17, 2007 12:41 AM #3
Rainer
6,257
Matt Royston
Centum Preferred Mortgage Funding Inc 12072 - Hamilton, ON

There needs to be better comunitcation between the Mortgage broker and the Agent.  With all of my clients I ask them if I can speak directly to their agent to let them know what is going on.  It is not that the client is wrong about what they think they are qaulified for, they just haven't taken everything into account.  This is a stressfull and exciting time for your client so they are not going to remeber every detail.  The more we help the better it is for everyone

Thanks for the post.

 

Matt

May 17, 2007 12:51 AM #4
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Stephanie...  my pleasure. Yes, property taxes can kill a deal if a loan officer doesn't use the correct taxes. I have seen many examples of this.

Overall.... it's not hard telling the agent's client the truth, it's when they don't listen to you and say...."the loan officer guaranteed me and it's in writing"...meaning the good faith estimate. This is what kills many of my potential deals.  thanks for your feedback. 

Laurie.....thanks, that's my niece....  in regards to grasping.....  certain loan officer's and lender's have been grasping ever since I got into the business.  It's called 'bait and switch'...   but yes, even more so now, because business has dried up for many, which means more lying.  It's sad and ashame.

Dave..   busy with life in general. But thanks for asking. You will see more of me again.  thanks.. 

May 17, 2007 12:52 AM #5
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Matt.... you flew under the radar there...   in regards to your comment, I slightly disagree. Sure, communication is very important, for any part of the transaction. Did you read the link to the rest of this blog?  Some loan officers will leave information out. Sometimes by accident, sometimes on purpose. Why on purpose?  It's harder to shop when you don't know the payment.

So, why not blame the client for not asking?  When you go buy a car, once they tell you that you are approved, you don't go 'okay, where do I sign?"  You want to know what the payment is first. But the problem here is that some of these lenders prey off the fact that Buying your first home can be intense....... as you stated....  and they don't know all the questions to ask. Or get overwhelmed....  thanks for your input.

May 17, 2007 01:00 AM #6
Rainer
18,479
JEROME G
White Plains, NY

Jeff....thanks for sharing this! Yes I agree that asking the right questions is crucial. The first question I ask my clients is how much are they willing to pay a month for thier mortgage. It is not only a matter of affordability but also confortness. Some buyers are hardly at home becasue they are taking two to three jobs after buying a home just to afford thier mortgage. You are supposed to enjoy your home not outside all the time working. You should have control of your life. Unfortunately for some buyers thier mortgage payment control thier lives.

Another important question is to ask them on how long they plan to keep the mortgage and what kind of mortgage program they are interested in. Many mortgage professionals are taking advantage of selling low payment programs (exotic loans, neg am) to the wrong people just to get them into the house with total disregard to an inevitable problem in the future. Most mortgage professionals are guilty of loan steering just to close a deal.

I beleive in spending time with a client and educating them.

 

May 17, 2007 02:11 AM #7
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Great points, Jeff.

I alway tell my buyer clients who are getting pre-approved to ask about the monthly payment if they are not told by the broker. After all, isn't that the bottom line? They need to know this, PLUS taxes, insurance, HOA fees, AND their personal budget (after taxes) so they know if they can really carry the amount the lender says they can. It is often a big surprise.

Jeff

May 17, 2007 02:36 AM #8
Rainmaker
98,376
Robert D. Ashby
Robert Ashby Photography - Miramar, FL

Jeff,

Good stuff.  Also, welcome back to blogging, I missed seeing you here.

When I qualify someone, I try to overestimate taxes and insurance, that way that don't have issues down the road when the numbers come out lower.  I have lost clients to other lenders by doing business this way, but I never bait and switch and I end up with happier clients.

May 17, 2007 02:41 AM #9
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Jerome..... asking the right questions is always important. But so is giving all of the correct information from lender to borrower is just as important.

In regards to your 2nd paragraph... I agree. This was mentioned in the blog in which I stated, "you need to get to know the client's 'goals'

Overall, you make some great points. Thanks for your input and feedback. 

Jeff D. ..... for some reason this seems missed more than it should be. And I just don't get it, why a client doesn't always ask about the payment if they aren't told. That always baffles me. Thanks for the polite compliment.

Robert.....  I always overestimate a little also, which I have lost some loans because of this also. But at least we can sleep at night. Even after I tell the clients that I over price or over estimate certain things for certain reasons.  And thanks for the comments......

May 17, 2007 03:01 AM #10
Rainmaker
336,733
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon
Jeff - I hope you find this as funny as I do - but when I went out to your other blog I thought - why is he sending me to a blog of another lender - I did not recognize you - the professional photo is great!  The post was as always informative.
May 17, 2007 03:49 AM #11
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Fran Gatti Licensed in CA & OR
RE/MAX Integrity - Medford, OR
Managing Principal Broker - RE/MAX Integrity

Jeff,

I like your new blog, very tastfully done.  Even though I'm not a lender, (I have one inside of me that wants to be fed lender info) I enjoy your posts and use the information to assist my clients in finding the right lender for them.  I have learned a lot reading lender posts on AR.

Fran

May 17, 2007 04:14 AM #12
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Thesa.....   lol...cute. It's because this is a hobby for me, not a job....  ;o)   And please, anyone reading that, please disregard that. I will help anyone with any type of financing.

And thank you very much for both comments...  much appreciative. 

Fran..... thank you very much....  that's very kind of you to say that. Overall, thanks for the comments. 

May 17, 2007 05:17 AM #13
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Robert and Lisa Hammerstein -201-315-8618
Keller Williams Valley Realty - Hillsdale, NJ
Bergen County NJ Real Estate

Hi Jeff,

Good to see ya' back.  Yes, we indeed tell our buyers to ask their mortgage rep what the estimated monthly mortgage payment will be.  No surprises usually equates to happy customers and happy customers will refer. 

May 17, 2007 06:12 AM #15
Anonymous
Keith Smolik

I recently sent out a good faith estimate that was truly as accurate as I could make it. This is assuming an amount for taxes, insurance, HOA's,Etc.

The borrower asked if i could give them a leaner good faith because other lenders were much lower on the estimated costs.

I told them that in the past, that kind of estimate only put the borrower in trouble at closing because when the true fees were included, the borrower was scrambling for closing costs because of the lean amount.

The borrower responded that they appreciated the advice and since have sent a referral to me.

Keep the information honest and even though it is an estimate, experience will tell you what is probable. 

 

 

May 17, 2007 07:11 AM #16
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Ravi....  funny.  And yes, a very intelligent realtor I would say. :o)  Thanks for the referral.

Lisa..... sure, we can tell them also. But this doesn't always help. But as you stated, have them ask their lender what their payment is.

Keith....  well, I wish there were more like us that would do this. And yes, referrals are very important to me also. So if you do the right thing and a great job, you hope that it comes back to us.  thanks for your input.

May 17, 2007 07:35 AM #17
Rainer
248,376
Desiree Daniels
RE/MAX Tri County - Robbinsville, NJ
I see you regained your so. I think u were trying to reach me . I am still in italy currently rome' amazing city. send me an email if you need something
May 18, 2007 10:05 AM #18
Rainmaker
46,031
Sarah Nopp
South Sound, WA

I carry a financial calculator with me so that I can do on the spot payment stuff for my clients. And I try to learn whatever I can about lender stuff that can help me help my clients. Not only does it help make the idea of buying real and immediate, it develops the relationship by opening up the other conversations that are really necessary to help a client reach their needs.

I have also learned that people seem to fear asking finance questions of their lenders! Things they need to ask over and over. But I think they are afraid of seeming uninformed. (And these are very good lenders who try to educate as much as possible.)

By the way, if anyone reading this doesn't now how to use a finacial calculator, the CRS 105 course is simply outstanding! (I know a few loan officers who ought to take it LOL) It is "Making The Right Real Estate Finance Decisions".

May 18, 2007 04:53 PM #19
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Desiree.....  Thanks for stopping by. No, I wasn't trying to reach you......  but I hope all is well and that you are enjoying Italy....

Sarah N....  you make some good points here....  thanks for sharing this with us.,

May 20, 2007 05:58 PM #20
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It's important that buyers understand what their loan options are and what they are being offered.  It's also very important for the loan officer to ask the right questions.

Nov 22, 2008 04:30 PM #21
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