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Borrow Money Like You Would Buy A Cell Phone

How is borrowing money like buying a cell phone?

phone I'm going to share a funny personal story with you. I just bought a cell phone the other day. Now, read on because it has a LOT to do with how to get good mortgage terms.

This was a big thing for me because I bought a real bad-ass cell phone. It's the LG CU500, the first HSDPA compatible UMTS handset for the US, and probably the first to be offered by Cingular.

Now I have no idea what I just cut and pasted about my cell phone but I know the thing cooks. The interesting part is I am a long-time cell phone user. I go back to the days when you threatened to leave your carrier and they gave you a free phone. PAYING for the handset was a never an option for me. I've been a ATT Wireless (now Cingular) customer for years so I logged on to the website and started my search. I found 2-3 phones I like,and marched into the Cingular store , prepared to do battle. Guess what? It costs about 50-$100 dollars more to buy the phone in the store than online. And that's perfectly fine with me because it is definitely worth it.

The moral of the story is this: We don't buy products, We buy solutions. Solutions are best provided by people and not a URL.

So how does this relate to the online versus in-person mortgage origination?

GET THE REST OF THIS STORY AT www.MortgageRatesReport.com

Posted by Brian Brady- America's VA Home Loan Broker on 12/09/2006 05:49 PM

Comments (26)

mortgage, hard money, arm, san diego real estate

Originally posted at: America's #1 Mortgage Broker: Borrow Money Like You Would Buy A Cell Phone

Post is included in group: Everything California

26 Comments on Borrow Money Like You Would Buy A Cell Phone

DEC

2006

I truly love your analogies. You remind me of me!

by the way, I made you a moderator of the NCCA group. As it grows, I'll need your help to keep tabs on things. Hope you don't mind....

Brian....I will have to agree with Rich on the first part, in regards to your analogies. I enjoyed this one...well written. Good job.

Good point Brian, like cell phones, when it comes to selecting a mortgage there are tons of programs to choose from. If the wrong program is selected, there are serious penalties to deal with. With the cell phone companies you might be able to get out of a jam however, when one makes a bad mortgage decision, it can affect them for a lifetime.

Great analogy!

You are in my network, holla!!

Brian, you do every one of us in the loan profession a favor by explaining this the way you do.

A personal home loan expert that cares about you and your community will always be better than some online lender.

One big reason: accountability.

If it got out in my community, both borrowers and Realtor partners, that I didn't give a fair deal or didn't add a lot of value, my goose would be cooked.

A local, trusted professional will always love you more than di-tech.

Brian, you do every one of us in the loan profession a favor by explaining this the way you do.

A personal home loan expert that cares about you and your community will always be better than some online lender.

One big reason: accountability.

If it got out in my community, both borrowers and Realtor partners, that I didn't give a fair deal or didn't add a lot of value, my goose would be cooked.

A local, trusted professional will always love you more than di-tech.

Joey,

Thanks for the compliment but more importantly, thanks for the good point about accountability. I love your line:

A local, trusted professional will always love you more than di-tech.

One thing I neglected to mention was that I got to look the sales rep in the eye . He transferred my SIM card, set up my voicemaill, help me activate the phone, etc. My comment to him was that I was paying an extra $100 to get it in the store because I wanted perosnalized service. He got it...so did I.

So true! I will opt for extra service for a fee more often than not. It's worth a little bit more knowing you have someone to turn to when something goes wrong.

Brian-great analogy and story. Thank you. We can do much on the www but the real productivity is still in the human interaction and the trusted work ethic we find in the individuals we love doing business with day in and day out.

"can you hear me now!"

Did I hear someone say Zillow?

DEC

2006

Brian - As usual Great Post!

I work with top professionals and have found the stress and games that other agents run into don't seem to come up in my deals.

When I get my own mortgages I use the same people I send my clients to and have been quite happy with the rates and terms. I never even considered trying the online folks.

Brian, this illustration was brilliant. I personally can't imagine wading through the quagmire of loan origination with a expert advice. You have indeed every one of your brethren a great service with this post. I guarantee this is an analogy that will be used over and over again in one form or another.

Thanks Jeff, Randy, Harpers, Michelle, and Kristal:

The funny thing I realized when I bought this phone is that I ended up with something completely different (but completely more appropriate) for my lifestyle.

Jonathan at Cingular on Midway in San Diego made it possible not the online service agent

The number of times I've called my mortgage broker long after a sale to ask questions about one of my properties, I cannot even count.

Her extended services have been incalculable to me.

Scratch the cell - how about Vonage - or for some - Skype. Let's use the full force of the internet to keep costs down.

Brian, Thanks for the post. This one is a keeper to be shared with those buyers who think they have it all sewn up.

Brian, good analogy. Who doesn't have a cell phone and doesn't understand all the different variations to choose from...same as with a loan. Perhaps, this might ring a few bells to those you have been shocked opening their bill to find they went over their minutes. Good programs for some and bad ones for others. Good Blog!

Tony: your comment illustrates my point. The internet provides a tidal wave of information; you need a human to help you negotiate the maze.

Gina: i think you're saying the same thing.

William: Thanks for the nice comment.

Jessica: I'd like to think our profession can answer questions post facto whereas the online lenders will tell you to call an 800 #

Brian, great post; on the surface level, too many bad stories to make me cringe about on line internet mortgages - I don't want to paint everyone with the same brush, but in general. why not stick to local people who understand the nuances of the areas

On another level, this gets back to giving support to local businesses; ya know I had to go there!

And I love your point about buying solutions. How true! Great post.

Carole:

Interesting discussion, huh? Whodathunk I would be directing business from online retailers to the "local yokels"? Like a haircut, a mortgage is far too personal to be trusted to an online site. (well, it's impossible to get a haircut online but I think you get the message).

Should you research online for a mortgage ? Absolutely ! That doestwo things:

1- It "sets" your expectations of market pricing

2- It "conditions" your expectation and tells you what your (consumer's) resposibilities are.

Brian,

Sorry, but I had to skip the comments and post this one quickly....AWESOME!!! I love how you blended the cell phone purchase with the mortgage process. It truly is a better value to work with a professional on a personal level instead of rolling the dice and hoping in the e-mortgage world.

I will go back now and read the comments and add as needed. Great job!

DEC

2006

Brian - You've illustrated the Gen X/Gen Y buying patterns perfectly. They spend a lot of time online doing research, but generally buy in person. Also, because they've already narrowed the market down, they look at fewer products in the store (or in the case of real estate, fewer homes).

Hi Brian - Great post. You hit the nail on the head about online banking. Our market is so unique in Hawaii, to even consider a transaction with an invisible mortgage company would be terrifying and place a huge amount of strain on the transaction - that is if a seller would accept an offer from a lender who has probably not done any viable business in the state. Haven't run into this too much YET....

DEC

2006

The old adage "you get what you pay for" will always apply. You can pay less but often shortchange yourself in doing so. As to that fancy UMTS phone... now in addition to talking, texting, and surfing, you can download and watch movies on the highway. Oh, great!

Chris,

This phone is more complicated than a Pay Option ARM...but...I love the movies. Let's see what happens when the first statement comes in.

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