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The Importance of Knowing (and feeling comfortable) With Your Service Provider

By
Mortgage and Lending with Bank of England (NMLS#418481) NMLS# 1046286

I've been talking with a gentleman from California who is getting ready to relocate here to St. Louis.  While I wasMoving introduced to him through the real estate side of my business, we started talking about how he was going to finance his purchase.

Turns out that he's doing what a lot of borrowers do.  He's shopping the internet for a lender.

He'd been on Lending Tree, as well as several other of these services where "Lender's Compete For Your Business" and had actually gotten to the point where he was confused because all of these lenders were telling him different things. 

One told him that they would have to treat the purchase of his property here in St. Louis as an investment property because he hadn't sold his home in California yet (not true, by the way) and another told him that that he would have to go with an adjustable rate because his back end ratio was going to be too high for a fixed rate (again, not true).  Yet another told him that he would have to pay a higher rate because his middle credit score (it was in the mid 700's) was too low to qualify for their "excellent credit" programs.

Conference CallAs I thought about his situation, I started to wonder about the downsides of a guy in California, buying a home in Missouri and talking with lenders from New York!  Aren't all real estate markets local? 

Also, with all of the complexities of mortgage lending, how good can you expect a call center employee to be?  God forbid, but what would happen if something went wrong with this guy's transaction?  Would Roger, the call center guy who was of the opinion that you can't buy a primary home in the city that you're moving to until you've sold your previous home (even though you more than qualify for both notes?) be able to handle an appraisal or title issue if one were to arise?  Something makes me wonder???

It's Not Limited To Lenders

Then I got an email from another person relocating to St. Louis.  He had read my blog and was curious if War ZoneI would mind him asking me a question or two.  

It turned out that he had been required to work with a specific agent whom had been referred to him by his company's relocation firm.  Actually, he was free to work with whomever he choose, but if he didn't work with this particular agent then his company's relocation package wouldn't be available to him.

One of the questions that he wanted to know was if it was true that the entire city of St. Louis was a "War Zone"?  Apparently that is what this agent had told him when he expressed a desire to live in a more urban setting and wanted an older home with character.

While I didn't want to step on this agent's toes or violate any agency relationship that she might have with him, this was Hog Wash and I felt compelled to tell him that.  St. Louis has many areas that have "older homes with character", both in urban and suburban settings and the entire city of St. Louis is not a "War Zone"!

So, again I was left wondering if these service providers knew their axx from a hole in the ground?  If this lady could be so misinformed about something like the characteristics of a city that has some wonderful neighborhoods with homes ranging into the millions, what else could she be misinformed about?

My Conclusion - ItOn Hold's Important To Know Whom You're Dealing With

I honestly don't know what the ends and outs of the relationships between relocation companies and the employers that they work with are.  Or what this guy's options are regarding getting a different agent, but it would have me concerned if she had made such statements to me.

If it were me, I'd want to work with somebody who was more aware of the various areas in her market area, if nothing else.

Regarding the guy shopping the internet for a mortgage, his situation too would bother me.  I don't know that I would want to work with someone who is sitting in a cubicle with a headset on playing Nerf basketball as we discussed my mortgage needs. 

Maybe this caricature of the internet lenders isn't 100% fair and there are really some well qualified people manning their phones, but from this guy and other's experiences, I do really wonder.

Be it my mortgage lender or my real estate agent, I would want to feel comfortable that there was somebody who was skilled, knowledgeable and committed to serving my needs working in my corner.  Somebody who I felt I had a relationship with and who would look out for my needs in the transaction.  In short, I would want to know and feel comfortable with those service providers!

 

R.B. "Bob" Mitchell

ValueList Real Estate Services, Inc.

 

Bob Mitchell is president of ValueList Real Estate Services,  St. Louis' largest discount/full-service real estate and mortgage company.  If you would like to find out more about Bob, ValueList or our flat-fee listing program, please feel free to visit our web site at valuelistre.com 

Comments (6)

Fred Miller
National Real Estate Pages - Roseville, CA

Great post.  Finding people on-line is kind of like finding people in the phone book.  You just never know who you are really dealing with.  Many people in the past 3-5 years were placed by referral with "experts" in their field as well and today are in foreclosure as a result.  You make a very valid point though, it is very important to do your "due diligence" with whomever you choose to advise you and who you put your trust in.  It could be one of the most costly mistakes of your life if you do not choose well.  Simply being on top of Yahoo and Google gives the impression that these folks are experts in their field, when in fact, they have either paid to get there via Pay per click, or they are good at SEO or paying someone to get them there.  This might qualify them as an Internet marketing expert, but not necessarily an expert in their respective profession.  Buyer beware!

Mar 21, 2008 04:20 AM
-- Casey Brischle
Columbia Bank - Spokane, WA
Spokane Home Loan Mortgage Professional
Meeting face-to-face and getting to know your client (and visa-versa) is the best way to do business.  Clients want to make sure you are dealing with a professional and it is imperative to learn the client's personality to affectively communicate with them.
Mar 21, 2008 04:37 AM
Dionne Bass
Ask The Underwriter - Atlanta, GA
Blog: Ask The Underwriter

Great post!  My first four months of being laid off I was looking for a job every hour on the Internet.  I was shocked how many lenders "WILL TRAIN!"  Is that who these people are talking to?  The people who were hired given a two hours training course and then let loose on the public to wreck havoc! If you are new to the industry please don't take this offensively, but as underwriter I see more people in trouble because of their mortgage professionals lack of knowledge.  That's why I so passionate about what I do.

Keep 'em coming Bob!

Mar 21, 2008 04:47 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Fred:  To your point, many of the "lead" generation sites such as Homegain and Lending Tree are at the top of the search results and they in turn sell your "lead" to whomever is willing to buy it. 

Also, it's not always a matter of which company that the lender or agent works for.  I've seen loan officers, some of them who have worked for me (not for long, mind you) who have not done right by the customer whereas there are other LO's or agents who work for the exact same company...sometimes even in the same office who are great at what they do.  Thanks for the comment!

Casey....you hit the nail on the head!  Thank you!

D:  I think that I told you the story (if not, here it is again) of taking a call while in line at the gas station.  I stepped out of line to discuss locking this client in and then got back into line at the conclusion of the conversation.  

When I got to the counter, the clerk (who shall we say wasn't the most professional looking of people) handed me a business card and told me that he was a loan officer too! (at one of the most heavily advertised mortgage companies here in St. Louis)

I'm not saying that a guy getting a start in the business can't have a part-time job (I've had them), but it does go to the point that not everybody in this business is as qualified as they should be!  Thanks for your comment  and kind words!

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Mar 21, 2008 05:44 AM
Barbara S. Duncan
RE/MAX Advantage - Searcy, AR
GRI, e-PRO, Executive Broker, Searcy AR
Good post.  I think service is better if you can do downtown and meet a lender and he/she will be living near you.  They are more apt to care about their services and about their reputation with you.
Mar 21, 2008 07:25 AM
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Barbara:  You're right!  I hadn't thought of that.  Does the guy with the headset on in some distant city really care if they do a good job for you?  Excellent point!

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Mar 21, 2008 07:35 AM