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Drive Through Mortgage's (would you like fries with that)

In this day in age of fast everything do you really want the person making your financial decisions a phone call away or at the closing table with you? Do you really know anything about that person? Where he/she worked last?

Would a Realtor show property from 1500 miles away on the phone? (forget the licensing issue) I think not. Now I know their are exceptions to the rule but for the most part this would not happen. So if a Realtor would not why would you leave your most important finical decision of your life to someone on the phone? Hhmm Think about it......

How would someone in New Jersey know and understand the South Florida market. At the same time how would I know the New Jersey Market? Yes we have RESPA to protect the consumer however, each state has its own laws and Florida laws are looser than most states. As an example of Florida's law, the Good Faith Estimate (GFE) that the client receives can be as much as 1% off the true closing costs of the loan. I know this does not sound like much but please keep in mind the average home in the South Florida market is $400,000. Now if the person would choose to do 100% financing this would represent $4,000 they could be off and remain perfectly legal. So Unfortunately, when this happens it seems like everyone wants to do business in the Florida Market.

Now I am not stating that these people are incompetent or unethical however, I take pride in meeting everyone of my clients face to face. I am always at the closing table with them and available to run and pick up anything that we may need along the way. (as any true Mortgage Professional would) If my client has a problem with anything they know I will be at the closing table with them. Not a phone call away.

This leads me to ask the question: Which is better having a drive through mortgage company or actually meeting a true FULL time Mortgage Professional Face-to Face?

I know many Mortgage Professionals on Active Rain and I would have know problem in recommending them or giving them my mortgage to do. Even if they are far away. But, please keep in mind how many mortgage's I have closed, unlike the average consumer who might be taken in by a smooth phone sales person.

I have seen many discussions about having everyone licensed regardless of who they work for. My opinion is quite simply this. Do you really know your Loan Officer? At least if everyone is licensed they would have a criminal background check and some basic knowledge of the laws. (hopefully they would follow)

Either way the decision is yours to make.

For more Mortgage Advice: Mortgage Advice in South Florida

Posted by Matthew J Blum - MyFavoriteMortgage.net on 06/23/2007 02:22 AM

Comments (30)

mortgage advice in south florida, mortgage industry

This post has been included in Florida Information Palm Beach County, FL Information Tequesta, FL Information

30 Comments on Drive Through Mortgage's (would you like fries with that)

JUN

2007

Really good point, who's to say, that whomever is on the other line selling that mortgage even has a license or training, man i hope people read this one it's such a good point.

Thanks,

Tom

I think you are going to see much tighter restrictions on the issue of interstae mortgage lending. The amount of fraud we currently have in this sector will continue to be the food for TV News Shows and politicians love to Save Us from ourselves.

Matt,

Drive thru's are quicker for my food. But when it comes to a LO or mortgage professional I think if it was my money then I would want to meet in person. It would make me feel that you would have my best interest in hand versus the fly by nighters looking to throw something against the wall and see if it sticks.

Hey... go into my last blog and click on the link that says 50% down.

Tom, It is true and as you know Florida says you can be anywhere in the world and originate loans in the state of Florida. (Anywhere) Thanks for your comment

Paul, I agree with you 100% we are going to see tighter restrictions

Neal, I believe your right. On my first mortgage I met the person face to face and he was always available for me. I know I was a pain in the rear on my first home.

Matt, great post! Actually, I couldn't agree with you more. This affects the agents and their clients 100%. Every state has different laws and I have had people get hosed on earnest money because their out of state lender didn't know the timelines. I just don't get this one and statistics show that people still want the face to face. It is very important to understand the state's legal timelines. Keep it up!

Stephanie, It is sad that so many people claim they know every states laws. I feel bad for your clients

It bothers me sometimes when my Realtor friends in other cities/states don't use ME but I understand that they want someone that can be on the scene...

I have been offered broker opens in Miami, for instance, but it is over an hour drive to some areas and to get down there at a moment's notice is just difficult.

I think consumers should at least have the option of a housecall even if they never use it. This also helps them know that our referral partners for insurance, appraisals, inspections, etc are held closer and to a higher standard since we "know where they live!"

in cape coral abutting properties can have substantially different values if the canal running next to them requires one to have a smaller boat to get under the bridge. it's about gulf access and it's effect on value.

if your not local it's unlikely you'd understand.

it's one of those things where you have to be there.

David,

I agree with you they should have the option. Not just a mobile closer. Thank you for your comment

Jay, I agree 1000% I live in the same state as you and I did know that. Thank you for your comment

I have customers who live here in CT 3/4 of the year and own winter homes in places like AZ,FL,CA and it would make no sense for me to tell them I can't help them with their mortgage needs out of CT when I can.

Leo, Please re read the post.."Now I know their are exceptions to the rule". Leo do you activily market south florida? After reading your posts.. I doubt highly you do. However, if a client is from florida that you have done loans for before and it falls in your lap.... Yes this is a different story.

FACE to FACE I say! Hawaii ...as most state have different real estate laws and loan officers in California or Massachusetts surely would not know...and actually may not even care when doing a loan so far away and by phone. Let's face it. Those are the ones that are not afraid or care because they don't have to meet face to face. I always recommend to client's to choose a local lender just for this fact. They know our laws and have worked with many an agent here so are pretty seasoned. Exceptions are investors no doubt .....but most have cash if they're going to buy here for investment. (usually the investors live here anyway) or they have a bunch to put down. I have yet to see a mainland lender "know" our laws.

Sally, I agree every state is so different. It really is difficult to make a blank statement about knowing everything. Thank you for your comment

Matt; I have never understood why the mortgage industry is so open to work in different areas - to me it is a dis-service - I am glad to see you take your part of this seriously - and value the representation - good for you!

Thesa, <blush> Thank you for your kind words. I really believe in meeting the people face to face.

I agree Matt, it's impossible to market in other area's and give the great customer service. We all have enough to do in our own back yard. I do travelto Florida about 4 times a year and have made some great contacts so in my case I do more business in fl than other states outside of CT. I will be in Daytona in 2 weeks for a week.

Too many lenders adopt the "caste the wide net and let's see what we catch" approach to doing business. I personally believe that this undermines our professionalism and only gives the public more opportunity to bad mouth us.

I have been in mortgages for over ten years and I have never been licensed anywhere but my home state.

Hey, I do not even really venture outside my county. If I get a referral that is outside my area, I often give the lead to one of my brokers that is closer to handle. I also require all my brokers to meet face to face when taking the application and to attend all closings. It promotes a much better relationship with the client.

JUN

2007

I have heard many of my peers tell of horror stories involving Internet/long distance mortgages that clients have chosen to pursue. There is nothing like doing business with local folks that have to look you in the eye...at least on occasion, and who depend on referrals to keep their business going.

Matthew.... you bring up some good points. And I know you said there is sometimes the exception to the rule and that face to face is better.... but not always.

I market myself on a national level both here on AR and through my other two blog sites. I am closing a purchase in Florida next week. This same person actually went to someone local and they screwed her... yes. And it was someone that she has done business with twice before in the last 5 years. She stayed with this person because he has helped in the past. Or has he? And this last deal? He started it with her back in January of this year and still hasn't closed it. She read one of my other blog sites and contacted me in the beginning of June. 3 weeks later, I am closing her.

Again, I read this post. Yes, you make some good points. But in all honesty and in reality... if you are good, that good.... and on top of your game, it shouldn't matter where you are. Yes, mortgages are one of the bigger investments in your life. But do you know how many multi million dollar deals are done online, over the phone, or tele conferences....???? A lot.... it's called being professional.

The only problem that I have with a post the tells the public to meet with people is because you also might be taking them away from someone from out of state that is better than that lender next door.

Yes... for the most part, many out of state lenders are just crooks. It's how their business models are set up. But look at Cendant Mortgage... PHH US Mortgage. They are a top ten company who is based and centralized in NJ.... they do all 50 states from that office. They are a top ten company.

My whole point.... both sides need to be hammered. Made public to the general public and not just saying that many out of state lenders are bad. Jason talks about having all of his people meet face to face. I love that interaction... but telling a client that you are better because you are in town as opposed to that person that they are talking to who is out of town????? You know what, you just sound like a sales person now also, because you are using that as a sales tactic. So, who is better now???? Just food for thought.

Just my .02. I just believe in educating on a whole perspective and not half of what you want the public to read about. I show both sides in so many blogs, hence the reason why I am starting to get a lot of national play now. I just got a lender in Ky to help her with a deal in Michigan. She searched for FHA lenders in Michigan and I came up. I gave her answers in 1 hour, after she contacted me this morning. She was shocked that I got back to her so quickly. AH.... this is my problem and issue. I DON'T care if you are in town... SERVICE. Okay... so you meet face to face. But how is your communication skills? How is your service? I hear it all... just pointing out both sides, that's all. thanks and sorry that this was so long.

jeff belonger

Thank you for your informative post, evertime I read blogs like yours, it makes me proud of being part of this community, thank you.

Matthew:

I am on your side with face to face, as opposed to Jeff as his comments on the big guys But, I agree with Jeff on the subject of SERVICE as the key. The truely big guys do have local offices where people can met face to face. So while it is national you can have a local touch and feel and not just a voice at the end of the line.

Renee, I too have heard the stories and experiienced it first had. An out of state lender delivering loan papers late and taxes computed wrong and then try to reach them from the table.

Wow.. see what happens if you go to bed early. I had know idea I was featured..

Leo, At least you travel here on a regular basis so people can place a name and a face together. Thank you for the comment

Steven, I totally agree many of those national lenders adopt throw enough on the wall and some of it sticks theory. Thank you for your comment

Jason, What better way to ask for a referral than when your loan closes and it is exactly what you promised the client. You have a happy client and you are sitting across from them.. "FACE TO FACE"

Renee, It is sad but true what do these people have to loose? It really brings down the level of professionalism. Thank you for your comment

Francisco, All I can say is thank you.... That truly makes me feel good.

Bob, I to agree "Service is the Key" and yes you are right most of the big players do have local offices where you can go and meet. I really agree with David's Podgurskys comment "I think consumers should at least have the option of a housecall even if they never use it.

I particularly would rather my clients work with a local person..I have seen too many issues with out of town companies..I am not saying there is anything wrong..but if I can have the underwriters close by it sometimes makes it easier when we have to hunt them down. As long as the job gets done then go for it.

Neal, I agree sometimes it does mean the difference on closing on time or pushing back a closing. See you this afternoon

You can create a much warmer and more customer focused experience if you are there with them engaging in dialogue. I think it's still important to know mortgage products and back up the knowledge with prompt followup, but in my opinion, local is better

And that's why I again choose...face to face....and I'll agree with Jeff on the service. So with that in mind...Hawaii local lender that is great with the service, KNOWS our Hawaii Real Estate laws (ALL states are different!) phone calls, getting the job done...and sits down with my client's face to face and go to signing with my client's....just like I do.

Scott, I agree with you 100% you really create a better experience for the client but you must back it up with knowledge. Thank you for your comment

Sally, I agree you must know the states laws and who better than someone who lives their... I agree you really should sit down with the client face to face.

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