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Giving Clients a Shot of Reality!

From time to time, I feel like I need to give clients a "shot of reality!" Why? All consumers are out there listening to crazy, unrealistic offers in the media about home loan programs that few often qualify for....and the ones that do, often don't want the product to begin with! Ofcourse, everyone wants the best terms and deal possible on purchasing a home, you would be crazy not to! But, when all consumers feel that they are on a level playing field...It's time for the shot! Otherwise, they become delarious. Like they have the West Nile Virus. Demanding this and demanding that....In a nutshell...wanting it all!

By all, I mean:

An interest rate that a person with perfect credit, putting 20% down, showing all of their documentation (W-2's,tax returns,bank statements,investment statements, etc) would get with a conforming loan amount, that has had consistent employement in the same line of work for a minimum of 2 years and actually makes the amount of money needed in order to sustain the mortgage payment, taking into consideration all of their other "daily expenses." And ofcourse, with...NO Preypayment penalty AND NO closing costs...hmmm

But, when I get a call from someone that has:

Filed for bankruptcy, doesn't make payments on time, is looking for 100% financing with a 600 mid FICO and doesn't have anything in the bank in the form of assets for reserves...It's time for the shot...

Yes, we have access to investors that will probably get a loan for you...regardless!

But, the banks and investors are all about "calculated risks." The higher the calculated risk, the higher your interest rate is going to be...period. I'm sorry, I know it isn't warm and fuzzy like the commercials...But, it's a reality.

We all understand that bad things happen go good people and more often than not, we can work through them. But it is important to work with a well informed mortgage professional that doesn't waste your time with false promises...Which I see often!

Give someone credible a call and work through your particular scenario. Often, it can be worked through. But, with history, it has a price...be it for better or worse... The key is to work with a professional that will treat you like a human and won't "take you for a ride because of your situation!"

Scott Gormley
Broker/Owner
Oak Valley Mortgage
2006 Chico Assoc. of Realtors Affiliate Chairman
Direct: 530.592.8362
Fax: 530.267.5555
Website: http://www.caloan.com/

Blog: http://activerain.com/blogs/lendingmagician

"You find the perfect home, we'll find the perfect loan!"

Posted by Scott Gormley on 11/13/2006 12:22 PM

Comments (8)

home, loan, mortgage, real, estate, reality, lending, refinance, purchase, home buyer

This post has been included in California Information

8 Comments on Giving Clients a Shot of Reality!

NOV

2006

Some people need a bit more than a 'shot'!

It's a shame that so many people fall for the ads, but those poor folks are SATURATED with BS.

Great post, I agree 100% with you!! I see a lot of this through my dads clients not only with financing but in purchasing a home. I would have to say that it is one of my biggest pet peeves (Common Sense).

Great Post! I agree. Most loan officers and agents don't care about the well being of there clients. It's nice to see you say these things!

Scott,

Every time I see your picture, I do a double take because you look so much like one of my favorite lenders here. And he thinks and acts very much like you come across in your posts - he CARES about people and he's a hard worker! That is SO important.

I try to convey that to buyers I work with that have gotten hooked into these internet lenders, but they sometimes still don't get it. I talk about the bait and switch that goes on, about how all they are to these kinds of lenders is a number, not a real person. I feel so bad for those who do fall for the stuff they put out there.

If you were in my area, I'd have you on my recommendations list, just based on the posts you make.

Ann Cummings

Thanks for the kind words everyone :)

Whats sucks is that the lenders these people are actually believing in end up bait and swtiching them in the end. Honest mortgage consultants such as yourself and me are hard to find.

Hi Scott,

Thank you for writing this, it's so nice to see other loan officers trying to impact our industry in a positive way.

NOV

2006

Great blog Scott,, buyers need to be educated. I had one that went to a lender that had a interest rate @ 6.00% recently and mine was 6.375%, I tried to explain the hidden junk fees but they were fixed on that rate. Turns out it cost her $9,000 at closing on a $160K loan and has a 2 year pre-pay. She sent me a e-mail after the closing and said she was sorry she did not get her loan through me and she realizes that she was taken advantage of now.

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