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Demanding a Rate Over the Phone!

I received an interesting call yesterday, so I figured that I would share it for the world to see my response...Or atleast possible California clients and Associates :)

The potential client called me and started rambling about random things, I tried to keep some flow to the conversation. In the end, I question if I ended up on some Los Angeles radio station, where I was broadcasted across the state for everyone's humor, including my wife's.

With that said, here goes:

Caller: What are your rates?

Me: Sir, I need to get some information from you before we go through rates.

Caller: I'm looking for a manafactured home.

Me: Great, have you found a property?

Him: Yes, in Red Bluff, California. I'm looking to move to Red Bluff.

Me: Ok, have you seen the property?

Him: No, my agent is XYX, he tole me about it.

Me: I'm sorry, I didn't catch your agent's last name, could you repeat that please?

Him: I don't want to tell you. He is busy.

Me: Ok (Back of my head...WOW!)

Me: Have you seen the property?

Him: No! I'm moving to Red Bluff

Him: How is it there? Have you been there? (Red flag number 1)

Me: LOL, You're moving to Red Bluff and you've never been there or seen the property?

Him: Yes, to raise sheep, the property is a double-wide on 11.5 acres.

Me: Ok, do you know how old the home is?

Him: 2 1/2 years

Me: Ok, do you know if the home is on a permanent foundation?

Him: No, what are your rates?

Me: Sir, there are a number of things that determine interest rates. For example: How much you plan to put down on the home, what your credit score looks like. Have you seen your credit score?

Him: Yes, it's 666 (Red flag...just happens to be the man downstairs's number)

Him: Hold on!

Me: Ok

Him: My son says that I should receive 5.5%!

(Now I'm trying to keep my composure and be a professional)

Me: Sir, I'm not going to quote you out some bogus rate over the phone. Certainly, there are companies that will do so. But, you will be suprised when your offerings are different when it comes time to sign documents than what you were initially offered. In our industry, they call it "Bait and switch." I am not going to do that. There is a proper way of going about things and I'm not going to simply through an arbitrary number over the phone to you.

Him: You asshole, give me your rates!

Click!

For potentially new clients that are out there, I think you should read my article, Comparing Apples to Apples When Shopping for a Mortgage.

For everyone else, I hope I gave you some humor for the day :) Through it all, I still love what I do. Why? No two days are the same and I get to see how unique each of us REALLY ARE through the loan process...

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.carealestateblog.com/

Blog: http://www.caloanblog.com/

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

Posted by Scott Gormley on 01/18/2007 11:25 AM

Comments (24)

phone, call, mortgage, demand, rate, home, loan, real, estate, finance, purchase, realtor, lender, california, chico

This post has been included in California Information

24 Comments on Demanding a Rate Over the Phone!

JAN

2007

Scott I love the picture! And that is how some people behave when they call for rates on the phone! So how do you get someone to stop making rate important and switch them over to looking at the skills and services you provide?

Me: Sir, I'm not going to quote you out some bogus rate over the phone. Certainly, there are companies that will do so. But, you will be suprised when your offerings are different when it comes time to sign documents than what you were initially offered. In our industry, they call it "Bait and switch." I am not going to do that. There is a proper way of going about things and I'm not going to simply through an arbitrary number over the phone to you.

I think showing the client that you have thier interests in mind and taking a stance on your position (rather than being "wishy washy" is the best approach. I qualify my "potential clients" just as much as they qualify me. Do I really want to represent this person. I do have a right to refuse business...

Scott

Way to work with difficult clients. Any relation to the Gormleys here in Sacramento?

Are they rich? LOL

Not that I know of :)

Scott

In this business Scott a customers ignorance is bliss. You did the right thing by hanging up on him, if he had to resort to insulting you hes not worth your time.

Eddy~ I didn't hang up on him, he hung up on me...lol

Scott

Scott - we get the same type of calls from sellers asking what our commission is - at least we can sit back and laugh.

I just sometimes wonder if they forgot a very important pill before they called. I have had two sellers in my life like that. I was never so happy to release them from my services.

I've dealt with several of those fool in the past - they never cease to amaze me.

I could usually calm them down - but every now and then you get a real prize specimen like the one you just described.

Scott! Way to be featured Lender today! K

Scott, while I have had people pushing for pricing... I have not expirienced anything quite like this. I really liked the "CLICK" and would have do so too if it ever get to the point where people swear at me.

Are they Rich? That's a good line. Calling ALL Stevens families (with money)!

JAN

2007

Scott either way the phone had to be hung up immediatley it didnt matter who did!!!!!. So have you been to Red Bluff? LOL

JAN

2007

Great example of the disconnect between much of the general public and industry professionals...

Prospects often inform me of an unattainable rate offers (5.5%) and then ask "what is your rate".
Similarly, my response is I don't offer opinions without obtaining specific personal infomation.
I follow up with "if I were offered a bona fide rate of 5.5% I would not look any further".

Even hearing my personal opinion to go elsewhere the prospect always wants me to quote "my rates".
If they persist I tell them 10% upon which they say "your rates are high"...guess I lost another one to Ditech.

That was good for a chuckle. Thanks, I get these from time to time, and I pass them over quickly. "Good luck with your new lender..."

I get this one too..."I'm calling 10 lenders, and the one with the lowest rates will hear back from me. What are you rates?" My response...too high to play that game. Good luck.

JAN

2007

I like that one Bob! LOL

Scott

JAN

2007

Scott - sounds like someone was playing a prank on you.... have you checked with any of your buds lately?

Bob - LMBO! Its a tuesday.... feels like a monday... and your comment made me laugh like it were friday.

JAN

2007

I've had stuff like that happen to me many times. It's uneducated loan officers that mislead the clients therefore making many people to think that mortgage professionals are scumbags. Sometimes that fact frustrates me.

Scott,

I must admit that I have never taken a call quite like this one. I believe that when we receive calls about our rates it is often due to the fact that they don't have or know another intelligent question to ask?

APR

2007

Wow, All I can say is some peoples kids. Do they really think the rate you quote is not going to change by the time they close if they don't take more action than just a phone call? Amazing!! Good post and Thanks for sharing Scott.

Good Day!! have a cup of java and a smile on me :)

Scott,

I get that a lot - my brother said I should get this rate or these terms. I've never had anyone that rude. Often I can explain to them how we work and 99% of the time they're very easy going about it.

Thanks,
Shailesh
www.aimeeloans.com