FHA Shopping, rate shopping, fee shopping.... call it what you want, just be careful!!!

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

shopping There are a few analogies that we all could use when comparing shopping for a mortgage, shopping for rates, and mortgage fees. We could use shopping for shoes, shopping for cars, or even shopping for Christmas trees. I thought I would use shoes as an analogy so Ines Hegedus-Garcia, Kristal Kraft, and other females could possibly relate to this. Should I include Mike Mueller because he wrote a post, Choose Your Mortgage As You Would Your Shoes, which was a good post. 

So, what does shoes have to do with shopping for mortgages?  It's quite simple. Each shoe has a different fit, just like each mortgage is different for each borrower. The primary concern of a competent loan is to make sure that they understand that clients goals, what they want to accomplish, and to make sure that they won't be in over their head with their mortgage payment.

In any case, what inspired me to write this post was because of a comment that Fran Gaspari wrote in this post of mine, Good Faith Estimate -- What to look for when shopping......  Here is what Fran wrote. One of my pet peeves is when people shop for a mortgage by comparing interest rates. What a delusion. Your time would be far better spent calling 5 of your trusted friends who have recently purchased or refinanced and interviewing them. Thanks,   Fran

 

Summary : I think this is a better time than none to educate the consumer who is not only a first time homebuyer, or someone that is refinancing for the first time, but to educate those that have done either one multiple times.  Why am I bringing this up or possibly harping on this subject?  Because I have spoken to more than 10 respected loan officers here on ActiveRain, in my office, and some friends that I know in the mortgage industry.  Many of us are seeing more loan officers in the business right now that are doing their basic job when pre-qualifying a client. It's very easy to quote rate and fees. But not to give that specific client a copy of the good faith estimate (GFE) is just so sad and semi wrong.

So, why is it not good when the loan officer doesn't share this piece of paper with you?  Because maybe they are afraid to show their hand? Maybe later on, they can add a fee and state that they discussed this with you.  Maybe they don't want to let you shop and compare? I will admit, I will never be the cheapest. But define cheapest. The best rate with no fees might mean poor service. If someone is not going to make any money on your loan, will they work hard enough to make sure if closes on time? Not always. But this is not my point. If you feel really comfortable with one person while shopping, don't hesitate to go back to them again and go over what you have collected. I highly recommend this. If you find this person to have integrity and to be very honest and educating when speaking to them, give this person the benefit of the doubt. Trust me on this, you might regret it later. These that are great sales people can run circles around you. Those that want to help, will spend time with you and educate you.

 

 


For a few more articles on shopping for mortgages, please read :

 

 

 

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Copyright  © 2007   by Jeff Belonger

 

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

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Rainmaker
2,417,840
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Jeff, not being a realtor I know very little about mortgages.  But I'm reading....and learning.  Thanks for your posts so I can become better educated.

Sep 01, 2007 03:05 PM #1
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
As typical, great work Mr. Belonger.  I would love to shoot the poop with you about the industry and mortgages....uninhibited and unannounced.  You know the trade, I admire what you know.
Sep 01, 2007 04:33 PM #2
Rainmaker
87,077
Paula Henry
Home to Indy Team @ HomeSmart Realty Group - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174
Jeff - I will be linking to some of your post for my Indianapolis posts. With all the news about mortgages, the consumer needs clear concise info. oh, yeah, so do I!
Sep 01, 2007 05:48 PM #3
Rainmaker
96,214
Fran White
North Kansas City Real Estate, Reece and Nichols Residential - Kansas City North, MO
Kansas City North Real Estate, 816-682-3897

Great Post....... and it was always my understanding that by law they had to give you a GFE, some don't but they are suppose to.  I always tell my clients to have it in their hot little hand and if you don't get it ASK for it.

Now about the shoes...... surely you wouldn't be insinuating that women have more shoes than men?  Surely you wouldn't be saying that?  Ok, I'll stop calling you surely. :):P

Sep 01, 2007 11:57 PM #4
Rainmaker
223,106
Rick & Ines - Miami Beach Real Estate
Majestic Properties - Miami Beach, FL
Hey Jeff - mention the word "shopping" and I am ALL OVER IT!!  (so you were right!) - Mike Mueller's article was a lot of fun, I have to check out Fran's
Sep 02, 2007 02:00 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

Carole....  isn't learning a great thing?  I know just enough about real estate and agreement of sales to be able to help my clients through the process while having them go back to speak to their realtor... and asking the right questions so I don't give them the wrong advice. Same here in regards to yourself as a realtor. Just knowing enough to know what to look for when your client is shopping for a mortgage. Thanks for stopping by.

Jason.... hopefully this will be sooner than later. And thanks for stopping by and for the compliments.

Paula....  that would be great and I appreciate the link love. Hopefully I could return the favor some day. And yes, the consumer needs to be educated so things are clear for them to make that decision.

Fran....  it's by law when you apply for a loan, filling out an application, that they have 3 days to give you a copy of your good faith estimate. When shopping, but not applying, I don't think there is a law. I will find out.  I think for someone to quote you, I don't think they need to give you a good faith estimate. But I don't worry about this because every client of mine, that I talk to, gets a copy.

Overall, it's very easy and takes me 10 minutes to e-mail them a copy. That is why it is also sad when it takes a loan officer over a full day to send a good faith estimate.

Ines....  wow, I mention your name and you appear. Maybe I should do this more often.  ;o)  You must have Google alert?   In any case, shopping, shopping, and shopping.  ;o)  Thanks for stopping by.

Sep 02, 2007 05:38 AM #6
Rainmaker
223,106
Rick & Ines - Miami Beach Real Estate
Majestic Properties - Miami Beach, FL
Jeff, my time in AR has been very limited lately (unfortunately), so it was definitely the google alerts.
Sep 02, 2007 06:09 AM #7
Rainer
14,415
Jay Oku
Academy Mortgage Corporation - Ewa Beach, HI
Aloha Jeff... Another great "makes sense" article. Thank you for the MEME too. I wrote it... Now I just need to know how to reach my three. Can you help?
Sep 02, 2007 06:18 AM #8
Rainmaker
501,149
Dena Stevens
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004

Shoes! WHERE? Where?

You mean one size doesn't fit all - who knew?

Sep 07, 2007 12:29 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

Jay....  I think I sent you an e-mail about the meme. I just have been to busy to follow up... sorry. But thanks for the polite compliment.

Dena....  well, one size could fit all in regards to shoes, if I cut the front part off or cut the toes off.  ;o)  But yes, there is not one person that is the same when applying for a mortgage. And I hear so many say.... well, my friend had bad credit and he got a mortgage. Define bad....  it's an ongoing thing and it just comes down to education. thanks for stopping by.

Sep 07, 2007 01:16 PM #10
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