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Please hold the Ketchup & the Mustard.... just give me my rate!!!!

By Jeff Belonger

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

August 17, 2008 03:18 AM

"I want that low rate and no fees that the other mortgage company is offering. And if you can't give it to me, then I'll just go to them or someone else."

I don't get those kind of mortgage shoppersthat much anymore. Most of my clients either come from a respected professional such as a realtor, or from a past client of mine, or from reading my blogs. I did wish I knew how to handle them better in the past though, but I guess with years of experience comes knowledge. But one thing that I never changed was that I was direct with my questions to the consumer and what ever I offered, would never be changed once they locked in.

drive through

My question to the average consumer out there is how do you shop for your mortgage or your new home. Do you semi take your time to not only find a good deal, but to make sure that you find a true professional to help you with your transaction?

When it comes to shopping for a mortgage, do you just ask for the rate and fees? As a consumer, do you know that I am not doing my job properly, if I don't ask you a series of questions first. And I am not just talking about asking what your credit scores are and what your income is.

My concern out of all of this is how you go about it and how do you screen people. Which is one reason why I love blogging. Not only do you get to see that I know my products and guidelines, but that you can usually pick up on that person's personality. Another concern is that you just don't believe what the first person tells you and in this case in point, the first loan officer that you talk to. Not unless you have done your research on that person.

What I don't fault the consumer for is how do you know who is being upfront with you. I say this because I have closed 9 transactions just this year, that all 9 clients were told by another loan officer that they could do the mortgage. That was never the case and I closed all 9 after they found me from blogging. When it comes to a conventional mortgage, you need an approve/eligible in order to do the loan. When it comes to FHA loans, any lender that is FHA approved can also manually underwrite the loan also. But the loan officer and underwriter need to know what they are doing, to be flexible while following guidelines, and know how to structure a deal to make it work (legally). Because of what I just mentioned, and with many FHA loans needing a manual underwrite, you have many loan officers that aren't experienced enough and will make you feel at ease upfront, and then give you bad news later on, usually at the last minute.

best deal

Overall, the best deal is not always the best price. The phrases, "I promise" or "I guarantee" or "I guarantee the lowest rates" in the mortgage business should be Red Flags !!!!! Just a FYI.... we all basically get our money from the same places. When someone advertises "Guaranteed lowest rate", this will usually be a bad experience or just a bait and switch method. Sure, some might be a tad lower than me when all said and done, but what you want from your loan officer is great service (follow up), someone upfront and direct, great mortgage knowledge, and a good deal overall. If you noticed, I said good deal and not great deal. These terms could be debated. Just food for thought.

My advice when shopping, get to know your loan officer or realtor. Possibly interview them in a few ways. One is to see if they have a web site and or to read their blogs, because this could tell you a lot about the person that you are dealing with. Happy shopping.....

A few articles of interest in regards to mortgage shopping :

____________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information on how you can obtain your dream home, please click here : Mortgage Financing Options

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!

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Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

LARRY.... I wanted to get into more detail, about such online services such as Lending Tree and Zillows mortgage lead generator. But this post was long enough and semi boring. But I wanted to make a basic point and to get that out to any consumer that would read these.

In regards to your suggestion with a new Olympic event, that was funny. I have great aim... but if you have to be a great bullshiter and one who can bait and switch with the best of them to compete, then I would lose. lol

JASON..... I know you are a huge believer when it comes to service and follow through. And we have both experienced this with your current transaction. But yes, it's drastically overlooked and many people don't realize this until it's to late. Hence why they need to read more blogs such as these, as reminders and wake ups.

Aug 17, 2008 03:54 AM

Larry Bettag

Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL

Vice-President of National Production

You crack me up...thanks J.

Aug 17, 2008 03:58 AM

Jeff Dowler, CRS

eXp Realty of California, Inc. - Carlsbad, CA

The Southern California Relocation Dude

Really good advice here, Jeff. I think so many consumers shop only for the rate and forget some of the other stuff, like hidden fees, poos service, etc. I am still surprised at the stories I head from buyers about the limited informaiton they are provided about their loans, including not getting a good faith estimate. Many, especially the ones who are new to buying, do not know the right questions to ask.

Jeff

Aug 17, 2008 04:15 AM

Nancy Larson

I am a licensed referral agent in NJ - Hutchinson Island, FL

Jeff, bottom line we do what is best fort the client and if you have to charge to give them the best, you charge. But there are still LO's out that that rape the clients as well.

Aug 17, 2008 04:23 AM

Fran Gaspari

Patriot Land Transfer, Inc. - Limerick, PA

"The Title Man" - Title Insurance - PA & NJ

Jeff,

We always agree with how to shop for a lender...when buying expensive jewelry, one wouldn't shop price until they found a Jeweler they could trust!!! Thanks, Fran

Aug 17, 2008 04:51 AM

Tim and Pam Cash

Crye-Leike (Sango) - Clarksville, TN

Real Estate Professionals - Clarksville TN

Jeff, great blog once again. I generally recommend only those Mortgage Brokers in which I have come to know as honest and experienced. In my personal life, I have always shopped rates via internet, but came back 'home' when it came down to it as I wanted the personal interaction and not simply an email acquaintance.

Aug 17, 2008 05:18 AM

Kate Elim

Dockside Realty - Spotsylvania, VA

Realtor 540-226-1964, Selling Homes & Land a

Hi Jeff...The "Just Give Me the Rate" people are the same ones that concern us as REALTORS. If they are not going to be cooperative with you they probably will not be with us.

Many have no idea of the complexities and the complications that can follow if they do not work with a reputable person during the mortgage process. The "promise" of a cheap rate cannot make up for the headaches that can come when things go wrong.

Kate

Aug 17, 2008 05:21 AM

Alan 'AJ' Nisen California Contra Costa Mortgage Officer

A Large Bank in America - Lafayette, CA

Jeff, some people try to make "Mortgages" a commodity. All they sell is the "teaser" rates that you can't qualify for. How many people have to learn the hard way that this is a service industry: service, knowledge, skill, professionalism to get them the best mortgage to fit their needs, close on time, an minimize any disruption in their lives..... by the way, I will have a double cheese burger... AJ

Aug 17, 2008 06:42 AM

Fred Chamberlin

Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA

Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Jeff, I can't disagree with a word you said. It is just so hard to get people to understand that there is more to this business than the rate.

Aug 17, 2008 09:19 AM

Laura Cerrano

Feng Shui Manhattan Long Island - Locust Valley, NY

Certified Feng Shui Expert, Speaker & Researcher

Jeff, This is really good advice and honestly I think those people that found your blogs were very fortunate. With everything that has gone and and is still in some cases still going on, they really need to find someone with their best interests at heart.

Aug 17, 2008 12:24 PM

William J. Archambault, Jr.

The Real Estate Investment Institute - Houston, TX

"Overall, the best deal is not always the best price. The phrases, "I promise" or "I guarantee" or "I guarantee the lowest rates" in the mortgage business should be Red Flags !!!!! Just a FYI.... we all basically get our money from the same places.,"

Jeff,

Please say it again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, 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and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again, and again!

I couldn't have said it better!

Bill

Aug 17, 2008 12:47 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JEFF D. .... the biggest thing that ticks me off is the loan officer not giving the consumer a good faith estimate when they qualify them. In my opinion, any very good loan officer will offer the GFE without the client asking. It's very easy and quick, if you pre-qualified someone. Typically, that loan officer just doesn't want them to see the fees or question them. And it can be another way to change things on them also. Sad, but it still happens and will always happen.

NANCY.... yes, there are many that over charge. But then again, what does one consider an over charge? Seriously, what one makes on an average might seem like a lot or little. What is the true standard? Per deal? Per loan amount? Just curoous... but overall, to me, it's those that bait and switch someone to get a deal. If someone over charges in the beginning and the client sees it on a good faith estimate... and that consumer doesn't shop them a little? Then shame on the consumer a little.

FRAN..... well, define trust. How does one trust though? Does someone making promises and guarantees get someones trust really quick? I think that was what hurt the mortgage industry for so many years. When I had another loan officer quoting a consumer a rate that I couldn't touch and I knew that it was a lie and I even told the consumer this, the first thing out of the consumer's mouth was.... "well, they promised it to me and put it on paper" .... again, this can sometimes be tough to beat. Hence why you have so many that fail at closing a deal, because the loan officer was so busy in promising, and forgot to truly qualify that client.

TIM & PAM..... well, I agree and disagree with some of your comment. I also love personal interaction, but you can still trust hindred's to thousands of miles away. Right now, about 65% of my business is out of state, NJ. I have a closing in Miami, next Friday, who they went to two large lenders in Miami and then to a broker. They chose me over all 3.

In any case, you still make a valid point. But I feel that this is what sometimes hurts a consumer also. That they go local, just because that lender is local, which might not be their best fit. Did I tell you that I lived in Lousiville, Ky for 5 years? I will be licensed in Illinois in 60 days and in KY and TN by the end of this year... just a FYI. I do want to thank you for your support and polite compliments.

KATE...... well, one thing that I can say since I have been blogging, I hardly get the rate shoppers. I did have one person that was referred to me by a local realtor, who shopped me and his settlement was delayed for 2 weeks. But yes, many just don't know what can go into this, especially if they are just an average or marginal buyer.

A.J. ........ well, the good news is that once they go through this, they do then realize and it makes my job much easier. But you hit the nail on the head when you said... "some people try to make "Mortgages" a commodity." Service, knowledge, and professionalism is a combination not found in many. ... at least from what I have seen and been up against in 16 years.

FRED...... well, as time goes on... and more horror stories, and people able to read blogs like this, they will realize. Let's hope so.... and hope those that bait and switch, are flushed out of the business.

CAROLE..... . hence why I so much love blogging..., it's helped my business and it has helped many get a mortgage that others had failed at, because of broken promises. thanks

BILL....... say what again? lol thanks, that comment does mean something.

Aug 17, 2008 01:49 PM

John Cannata

214-728-0449 http://TexasLoanGuy.com - Frisco, TX

Texas Home Mortgage - Purchase or Refinance

This is a good post Jeff. I do not agree with all you said, but it was worded great. I think you can give a great deal without taking advantage os someone and/or doing a 'bait and switch'. I realize it happens with some individuals, so that is not my argument. I do agree that consumers need to get to know their LO or Banker before making any final decisions. I do see your points, but thought it was too 'generalized'. Thanks for the thoughts.

Aug 17, 2008 04:03 PM

Susie Blackmon

Ocala, FL

Ocala, Horses, Western Wear, Horse Farms, Marketing

Wonder why all I can think about is selling my little place and buying an Airstream so I don't have any anchors?? Oh yeah, what's your rate? (Just kidding.)

Aug 17, 2008 07:43 PM

Cynthia Tilghman, Realtor® Onslow County NC Home Specialist

Kingsbridge Realty, Inc - Hubert, NC

Hi Jeff,
You're the man! When I hear the words "guarantee, promise the lowest"--I run!

Aug 17, 2008 11:52 PM

Jeff Belonger

Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ

The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

JOHN.... we could agree to disagree. The main focal point would be to define a "great deal". To me, if I gave you a great deal, I wouldn't make much money. This is one thing that ticks me off, between what a realtor makes and what a loan officer makes. A realtors commission is usually set. .,.. usually. But if I need to lower my rate and such, I might make as little as 1/2 percent? Then the consumer is getting a great deal.

To me, a very good deal is a good rate, not the best, but you are getting a fully loaded car per se. Service, knowledge, expertise, follow up, and professionalism to name a few. You say that you can give a great deal without taking advantage of someone. You can still give a very good deal and not do the same... even an average deal. The biggest issue at hand are those that present a great deal, but at the end, the consumer doesn't even get an average deal. thanks for your feedback...

SUSIE.... my rate? it's 2% fixed, but for the next 1 minute. After that, whatever the going market is at that time. lol Thanks

CYNTHIA..... even when I see them on people's business cards, signature page, etc etc.... just your typical sales pitch... which to me, doesn't mean squat.

Aug 18, 2008 02:48 AM

Patrick Randles

Nova Home Loans - Tucson, AZ

Jeff,

I have to agree with you on this post. When I first got into the business, I made having the lowest rate my top concern. After working very hard, aggravating my clients and making very little money, I concluded that the rate could not be my top selling point. Getting the deal closed in a timely fashion, with competitive rates and fees and a low stress level are all high on my list. There is always someone out there willing to quote a lower rate if you look hard enough (or just look at rates online). Another good post.

Aug 18, 2008 02:58 AM

John Cannata

214-728-0449 http://TexasLoanGuy.com - Frisco, TX

Texas Home Mortgage - Purchase or Refinance

I understand Jeff. And for the most part, I believe we agree with each other. You are right that you are in the business to make money and not just give it away. I think there are still quite a few LOs that switch up the deal after the real the customer in. Obviously, that is not the way to conduct your business. Many customers don't know what to look for exactly... the questions they all want to know is 'whats the rate'. As you stated, its important to educate them and show the service side of this business. Explain there is more too it than just the 'lowest' rate. I had a customer 2 weeks ago that I spoke with. Gave him what the rate was (which matched a few of his other offers) and he mentioned another guy was offering almost 1/2 % lower than everyone else.

Needless to say, he called back and we are doing business because the other guy could not put it in writing. Obviously... since that rate did not exist without paying a few points.

Anyway, I appreciate you entertaining my response. As I said, I think we agree for the most part. I think I just took one of your comments a little 'too general'. Thanks for the post!

Aug 18, 2008 05:27 AM

Gerry Suarez Jr.

New American Funding NMLS 6606 - Orlando, FL

FL Mortgage Guru

Another awesome post Jeff,

and then you have the issue of a fair good faith estimate too right! How many deals have I lost because I disclosed an imminent property tax increase when the other lender didn't? I do agree with you Jeff, understanding there MAY be VERY few exceptions. If all a lender sells is price, then the borrower WILL be paying for that elsewhere!

Gerry Suarez, Jr.

Your HUD Loan Pro!

Aug 19, 2008 02:07 AM

Linda Le - Hawaii Loan Officer

Pacific Access Mortgage - Honolulu, HI

I definitely agree with your comment on loan officers who promises, guarantees... etc... RED FLAG!!

Aug 20, 2008 05:47 PM