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Do you give free advice?

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

bare money tree

 

Is your money tree bare at times for giving free advice? I am sure many of us have done this from one time or another. I just hope you don't do it often. It can have an affect on you. Sure, we all need to make a living. And I know there are a lot of helpful people in this business. Not to pat myself on the back, but I know I am very helpful, outgoing, sincere, and won't turn too many people away. I just love helping people.

Two nights ago I received a phone call from a consumer in Texas that had read one of my blogs. She was actually buying her first home with her husband. I didn't answer the original call which was at 11 pm, 10 pm her time. Her first words to me where, "I read that you are the FHA Expert." She goes on to tell me that they are suppose to close in a few hours. Hey, I believe in shopping around, but the day before closing? I then give her my e-mail address so she could forward me the good faith estimate that she received from Countrywide. Now, I am not knocking Countrywide here. I always make a statement, you aren't dealing with the actual lender, but with a loan officer who makes the original decisions. But at this time, we aren't getting anywhere. She calls me 2 times in a row, asking if I received her e-mail. I said, no, I didn't. I even sent her an e-mail with my e-mail address. I was just about to tell her to talk to someone else, because she didn't even have my e-mail address correct. How can you mess this up even after I send it to you. 

I finally get her good faith estimate. It was a little higher, which she told me that she was able to get them to come down in their fees twice. I told her my opinion, anytime you can negotiate pricing like that, they were charging you too much to begin with. Sure, rates change daily, but the loan officer came down twice and not by a little. The other complaint was that nobody was calling her back. They only communicated with her by e-mail, even the branch manager. I thought this was very odd and poor service.

 

Do you want to hear the end?  Asking yourself, Jeff, where are you going with this?  She told me that her settlement was moved to 1 pm from noon. A semi red flag for me. Especially since they applied with Countrywide back in July. She also asked my opinion in regards to her most current good faith estimate. I said send me the HUD settlement sheet when they get it from the title company. It's amazing when a client says that they want better, that they won't settle, and the final numbers come down again. After reviewing the HUD statement, I told her to go with it. That it looks good. She thanked me for taking time out of my day.

 

smiley face
I received a call from this person about 7 pm last night. Her first words out of her mouth were, "We have the keys". I said congratulations several times after she thanked me several times. What will I do now?  Send her my business card and ask for referrals. I knew I wasn't getting anything because I told her to stay with her current company. But it did put a smile on my face when she still took the time to call me later on to thank me. A first time homebuyer excited with her first home, thinking of herself. This was not the case. 

 

 

 

 

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Copyright  © 2007   by Jeff Belonger

 

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

Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I too am guilty as charged.  Yet, asking for referrals is the perfect way to handle this Jeff.  Nice job, I take referrals by the way:-)
Oct 15, 2007 01:42 AM
Jim McGrath
Roseland, NJ
We are in the service industy.  Giving people our professional help is part of our job in my opinion.  Like a Dr. at a golf course who takes the time to look at a guys bee sting...he isn't sending him a bill either...just professionalism.
Oct 15, 2007 02:05 AM
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Jeff,
I believe what goes around comes around -- good and bad.  I try to help people even though I know there will be nothing in it for me--except the satisfaction that I helped someone.  Hey, we all know you are a good guy!
Oct 15, 2007 07:31 AM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island
JEFF:  Great story.  I think that we all probably give too much free information in our attempt to help others.  Hopefully, it will come back to you in the end with referrals from this happy homeowner.
Oct 15, 2007 08:16 AM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Jeff, why doesn't this surprise me...  and you know, you probably will get a referral or 2 or 3 from here.  I've never taken the time to help someone that it hasn't come back to me in the future - sometimes I don't even know it until after the fact. 

'Haven't talked in a while, so I just thought I'd check in and say 'hi'.

Oct 15, 2007 04:00 PM
Brandon Hoffman
RE/MAX Connected - Irmo, SC

Sometimes I give free advice but it depends on a few things. The most important thing is: Can I be held legally liable for anything I say to this CUSTOMER? If so, I tell them that I can only help clients (or if working with another agent I can't interfere with their agency, call your agent and ask them).

So, Jeff, you did a nice thing and gave good advice. Did anything you do expose you legally? If not, then what did it hurt? Answer-nothing but could have future benefits. I'd say you did right.

Oct 15, 2007 04:47 PM
Kim Murphy
Draper and Kramer - Lombard, IL
Mortgage Loans in DuPage, Kane, Cook, Lake, Will C
Jeff - This is what makes you a Great LO!  I have had borrowers call me during their purchase process, not the day before, thank goodness, and have advised them and then told them to stay where they were at.  I would not want a loan "stolen" from me if it was a good loan and I have told them its a good loan.  I do believe in Karma, and what comes around goes around! 
Oct 19, 2007 04:56 PM
Minnesota Home Staging Firm, Minnesota
Minnesota Home Staging Network~ MN's Top Home Staging Firm - Inver Grove Heights, MN
Sometimes we do...sometimes we don't. It depends on the situation and how well we know the people. Kind of a double edged sword sometimes.
Oct 20, 2007 02:41 PM
Jay McGillicuddy
Berkshire Hathaway HomeServices Verani Realty - Exeter, NH
Real Estate Broker
The nice thing is she saw your blog and did contact you. I am sure more will follow.
Oct 24, 2007 12:08 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Free advice is free advertising!! One of my web sites is as much a local directory as it is a web site and we constantly get compliments on the amount of links to other web sites we provide (free) to other local business owners who likley are not even aware we do this.

Oct 24, 2007 01:22 PM
Joel Silberstein Brooklyn NY Certified Mortgage Specialis
The Silberstein Group - Brooklyn NY Mortgage Planning Team - Brooklyn, NY

Jeff you are good man!

All that I can say is that this is one way god test us if we are that selfish. One benefit that comes out of this is that at least we are exposed to what others are doing, and it gives us some experience

Sincerely

Joel Silberstein

Oct 27, 2007 01:18 PM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic
You may have just made that person's day. That in and of itself should make you proud.
Oct 28, 2007 02:59 AM
Jordan Sanders
Peoples Home Equity, Inc - Brentwood, TN
If it weren't for people like you on sites like this and BrokerOutpost I'd be swallowed by the sea by now.  I value every piece of advice people give out for free.  I'm 25 and new to the biz...without you all I don't know where I'd be.  My mother always taught me to help out others whenever I can without looking for anything in return...it's just being a good person.  Cheers
Oct 29, 2007 09:54 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Keith & Robin....  yes it is.... Anytime you can share past examples that are real. It shows the public and people in the business your personality and how you treat people. Glad that you recognized this. And thanks for the compliment and for stopping by.

Russ....  I agree, not too many people know about credit and how it works, the credit scores, collection accounts, etc etc. Even those that work for credit agencies. Glad that you take the time to help others out. And when I have time, I'll check out this forum. thanks

Tom W. ....  you shouldn't feel guilty and you shouldn't stop. I believe that many of us just need to pick and choose when we do this. But best of all, on how much we help without asking for referrals. It all comes down to time and time is money.

Jason......  so, you take referrals? I hate them... lol  Seriously, they are the best part of any business. Thanks for the compliments.

Jim M. ......  I agree, it's part of our industry and business. The question is, do we do it more than most professions?  Especially with the internet, blogging, and e-mails.

Cynthia.....  I believe for the most part that what goes around comes around. But I think because of my helpful personality, it goes around 3 times as much as it comes around. But that is my choice. I can stop that at anytime. And thanks, I think you are a good person also. 


 

Oct 31, 2007 02:16 AM
Roberta LaRocca
Simply Vegas Real Estate - Las Vegas, NV
REALTOR®, Broker, Salesperson, NV. Lic BS.507
Jeff, I don't think anybody likes to give "free" advice but it is part of the business.  At least it makes you feel good about yourself when you do help somebody. 
Oct 31, 2007 05:42 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Adam....  I agree. The question is, how much and when should we stop. My problem is that I am very detailed and once I start helping someone, even though it might not go anywhere, it does cut into my other work. And time is money. I do believe that it does come around, that it comes back to you. thanks for the compliment.

Margaret....  no, we haven't taled in a while. I am always around by e-mail and or cell. But in regards to a referral or two. I am sure many of us operate this way and hope for the referrals. 

In regards to not knowing that it was a referral until later?  For the most part, 99% of the times, maybe 100% of the time, I always ask every person how they came to me, if someone hasn't told me that they are sending someone my way. Every time I write down someone's name in my notebook of clients, I list up top how they came to me. This way I always know. 

 

Brandon....  I totally agree....  if they ask me something outside of mortgages, I sometimes give them my opinion and tell them this. But then say... you must speak to an attorney or a realtor who would know. I have knowledge of both, but I never advise them on such a topic that is outside my norm.  So no, I I didn't expose myself. And even if I thought that they were being taken advantage and I said this, there is nothing that could be legally done to me.  thanks for the comments and input. 

Kim.... karma is not believed by all...  I ageree.  I did steal a loan from a loan officer several months ago. He tried to get them back by telling them the rate that I was offering did not exist. And what's funny, it was 6 1/2 with no points and fees... LOL   It's a longer story, but he stubbed his toe on a few things that he told the clients that I made them aware of and they saw the light. 

So, no, I wouldn't want one stolen from me. And the only way would be to do it almost for free. Or, bait and switch the client, giving them a deal that the loan officer could not honor at closing. 

Beth.... yes, it can be a double edged sword. And sometimes I try to evaluate my time and how much time I might spend on that person. And if it is a lot, I will make them aware of it and still ask for a referral. Hey, you never know unless you ask and or try, right?

Erica....  the bottom line, the public doesn't always realize what we do or how we work... and lastly, how we get paid. That's were we all come into play, educating the consumer any chance that we get.


Nov 01, 2007 11:01 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Jeff--you NOW have a client for life!  As well, she will refer you to her friends who ask if she knows a great lender/broker!  GREAT job and I always believe that good deeds return 10-fold--get ready for those calls!

Debe in Charlotte, NC

Dec 09, 2007 03:39 AM
Matthew Starr Longwell
Starr - Atlanta, GA

 

I like this Jeff,

.........we do what we do because it is what we do, without it we have nothing to do and no one to do it for.

That sounds goofy but it does round out why people farm away in our business year after year.

I havent' written anythin in years, your written communication skill is top shelf.

Dec 09, 2007 04:37 AM
Steven Odierno
Mahwah, NJ
NJ Mortgage & Marketing Professional

Jeff - What you did is simply good business.  While it may not show up on your bottom line right away, who is to say that this woman does not know an investor looking to buy 10 properties or 10 people looking to buy their own homes?  What you did "for free" is more cost effective than any other marketing medium that I can think of.

Feb 19, 2008 04:25 AM
Tom Engelhardt
First Choice Mortgage - Ocala, FL
Jeff- One of my dads favorite sayings has always been "Help enough people get what you want, and you'll get what you want." So keep helping and it'll come back around.
Feb 19, 2008 08:30 AM