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Give me the best deal & I want the best service !!!!

shopping Are you a savvy shopper? Are you an educated shopper? How about sloppy? Cheap? Risky? Are you one that shops yourself right out of the market?

Are you one that jumps at any deal just because it says sale? Or when someone advertises "guarantee lowest rates" or "no fees"?

I have no problem with consumers looking for deals. Not at all, because I am one of them. I love bargains and steals. But how do you know when you have a deal that you have stolen at cost? What can it cost you short term or long term if it isn't such a great deal as advertised?

customer service

How about customer service? I think most of us want this all the time and expect it. It's just human nature. But what about sacrificing customer service for price? Can you have your cake and eat it to? Yes and no..... at least this is my opinion.

I have been in the mortgage industry for over 16 years. Just the other day, I read a blog from a realtor asking for a great deal, with no junk fees and someone that will give great service. In an exchange for a possibly business relationship also. We won't touch on the second comment. But some of the comments by other professionals was just sad.

I talk to many realtors and loan officers on a weekly business. Many of us care about our clients. And we don't have a problem giving a consumer a good deal. Defining a great deal in my opinion could mean trouble for that consumer shopping. Shopping for a mortgage is not like shopping for a new HDTV. The same exact tv, same make and model, that can be found at 3 different stores. Yes, you can shop for the best price. You just hope that it turns on when you get home. If not, that's what warranties are for. And yes, you hope that the customer service is reasonable, so that you can get a new tv that works. But this is not the same in the world of mortgages.

A Mortgage Professional is different than an order taker. Some loan officers use "best rate", "guaranteed lowest rates", and or "no fees" to their advantage, to get you into the door. My advice, anyone ever advertising this, you should look elsewhere. Just my opinion.... Many of us agree that you just won't get great service if we gave you the best price. Don't get me wrong, I won't bait and switch you. Never have and never will. But if you want to call me at 8 pm at night, on the weekends, or almost once a day? What do you think? I take a lot of pride in what I do and I will get back to you. But at what time frame will someone get back to you if they aren't making much on the deal? Just use your common sense here.

Overall, in the world of mortgages, each and every lender has a profit margin. Most loan officers have a certain margin that they need to meet in order to make a living. I am not talking about a plush living, but enough to live at ease.... comfortable. But here is a little secret. When it comes to the cost of a mortgage, no matter if you go with a banker or a broker, we all get our money from the same place. It's called Wall Street. Yes, there are different investors with slightly different pricing. But don't let that sales person fool you. It's enough to save you anywhere from $250 to $750 on a $200,000 mortgage. But again, are you willing to sacrifice service, which would include : follow up, honest communication, and availability?

I want to end with this. If I had to outline how I feel about all of this?

Those in the real estate & mortgage industry that tend to ask more questions than the average professional or spend more time with you, usually bring more to the table than just figures or promises to rope you in..... They bring knowledge, passion, years of experience (but not always the case, they needed to start some where), a caring heart, and a dedication not only to their client, but to themselves. Wanting to be the best and providing not only great service, but delivering as promised and not what you want to hear.

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Posted by Jeff Belonger-The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans on 09/13/2008 10:57 AM

Comments (32)

Mortgage Rate Guidance in the Mortgage / Finance Channel

rate shopping, mortgage shopping, shopping for rates, mortgage rates, fha loans, fha mortgages, mortgages, real estate, shopping for mortgage

Originally posted at: FHA Mortgage Expert - Tri-State Area - New Jersey/PA/Delaware: Give me the best deal & I want the best service !!!!

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32 Comments on Give me the best deal & I want the best service !!!!

SEP

2008

I build my business as a service. If its a commodity you'll be out of business soon. I have a couple of people locally who just advertise "liar rates" in the newspaper. When asked of the paper what's the lowest rate being advertised so far, they then advertise .125% lower. They said the reality is that they just want the opportunity to engage coupled with the fact that advertising is given 3 days prior to publish so the rates are out of date by the time that the ad is published. True commodity sluts. They're the ones who give a bad name to the industry. We need to continue to add TRUE value to our clients. People who advertise never make any money unless they're spending money advertising....I'd rather invest in my clients.

Jeff - what I really don't like is when a buyer gets a rate quote from a lender or a pre-qual letter - without filling out an app, no credit check, etc., and no explanation from the lender - and the buyer considers themselves prequalified.

Love your new photo, it looks very professional. This is a question I think most consumers ask, we want great rates and great service.

Jeff I couldnt agree with you more. I too followed that "other" blog and the level of groveling in order to try to get the deal was pathetic at best. I would never want the reputation as being the "cheapest" guy around. As we all know cheap can mean a lot of things. What I'm looking for is to be known for providing the best value for the level of service I provide.

Jeff, this business is all about the customer and customer focus. Pam and I pride ourselves on going the extra mile in order to ensure our clients are taken care of. When looking for a discount one needs to look at the long term and whether or not the cut rate deal that they are being offered has the neccessary support and care system behind it.

Jeff,

The funny thing is that real estate agents will all try to justify charging 6 or 7% to list a house versus using a discount broker as "you get what you pay for" yet they don't see how that applies to mortgages as well. Why is it that an agent will charge you 6% to list your house regardless of whether the market plan consists of putting a billboard in Times Square and personally going door to door to find a buyer or simply doing nothing else other than sticking a sign in your front yard? Yet when it comes to mortgages they want discount broker prices and full time customer service.

How many consumers were led into mortgage products with the lowest rates and they did not fully understand the rate was adjustable or interest only?

You get what you pay for.

Michelle

LARRY...... . yes, there are some local lenders even still in the Philadelphia Inquirer who low ball rates. By at least 1/2 percent lower. 3 years prior, all the way back to 1992, there were over 30 lenders in this section. In my honest opinion, they all should have been closed down. And yes, knowing that those rates have to be in 3 days before the paper is even published. Just another way to make an excuse, unless rates dropped in their favor.

But yes, lenders like this are what give our industry a bad name. Also the loan officers that bait and switch at the end.... or just flat out lie. But as long as you and I keep educating the consumer on this, maybe we can make more awareness amongst the consumer. thanks

VIRGINIA........ yes, I hate this also. But again, it comes down to educating the consumer. What should take place and what shouldn't. When you speak to a loan officer and they pre-qualify you, is when they should quote you a rate. But again, as I mentioned to you, it comes to all of us educating the consumer on what to look for.

MISSY....... . first off, thanks for the polite compliment, it's much appreciative. In regards to your statement on what consumers want .. "we want great rates and great service." Well, I believe this can be achieved to a certain degree in our business. And I didn't want to go into the different types of consumers. But the 20% or more down with 700 credits, who I just have to collect several items from, can usually get that best deal. Anyone outside of that, that are average to difficult, who need a lot of help with their loan and who will call more than often...?? sorry, but it's just not possible. Time is money.... this is at least my opinion.

ROBERT....... not to get into that other blog, but as one member said, it was pathetic. And I am not trying to point fingers at some loan officers. Even some that did follow me that might respect me less. Again, I could be here forever on that one. But that blog was a good example of what I mentioned.

TIM & PAM...... . I agree, customer focus. But how does one define that when the client wants the cheapest rate. And in many cases can get it at first, but does that loan close on time or with problems. I bet if I had to do stats on this, even the easiest of deals, it can and has happened. thanks for the feedback.

MICHELLE aka Above All Financial...... well, this wasn't really about real estate agents vs loan officers and what they make. This was more about the consumer shopping and more about mortgages. I agree with part of your statement. But those realtors that usually intervene and tell their client that they should go else where, are usually a realtor that I wouldn't want to deal with. But only if they are just trying to get them to their loan officer. If the loan officer was charging way to much, yes, then possibly step in. But again, with all of the pricing hits nowadays, how can one tell???

Hey Jeff - As you know, I read that blog as well. You are correct that the second comment is a touchy situation and certainly is not something you put in writing. You also know that the going against a RESPA guideline will cost you much more than just your license.

I do have to say that I did not read the same thing that you read. I am being specific to the lenders that were providing quotes and a breakdown of fees. it appeared that they were all quoting the same rate, but some with slightly lower fees than others. As you know from watching the market, the rates were all within reason. Sure, some would only make about $1000 compared to others that would make $3000 or more. I certainly would have called out any individual that seemed to be low balling (by name), as I assume you would as well. I think that Bait and Switch does still occur and should be called out whenever possible. In addition, I would hope that consumers report those individuals to their state to be audited further.

Well written material above. Consumers do need to be aware that service does tend to be cut when the deal seems 'too good to be true'. Have a good weekend.

p.s. I like the new picture too. What the picture from your DPA trip?

Hey Jeff. Its funny because I was the"other member who said it was pathetic" in that other blog and for some reason my comment disappeared. Strange.

Jeff - GREAT BLOG! I also read that other blog and I liked your answer then too. The first thing I thought when I read that blog was "shame on her". I know you didn't want your blog to be about realtors vs. lenders, but it is Jeff.

I agree with Michelle. When a realtor lists a home, they work very hard to market and sell their clients home and their sales office work very hard to support them during the sales transaction and that is where the 5%-6% listing fee goes when the home closes escrow. Well, lenders are no different. LO's work very hard for their clients to provide them with an affordable loan option that meets their needs and their offices work very hard to process, underwrite and fund their loan in a timely manner, which is where the origination and lender fees go when escrow closes.

That realtor and her proposal of doing her loan with no fees in exchange for future business (don't even get me started on that!) reminded me of a local realtor who made the same proposal to me recently. After explaining to the realtor the purpose of the origination and fees, I provided her with a reasonable market quote for that day. The realtor didn't like it and told me that the other day, so-and-so gave her a better quote and off she went. I heard through the grapevine, that the realtor shopped that loan for two months and ended up going with an unknown internet lender; appears as though she got exactly what she was looking for.

BTW: the realtor who posted the blog the other day, she has now posted that same blog to several other groups; appears she's still shopping that loan.

P.S. - like the new pix in Washington! Very impressive. For what it's worth though, I like the old one too! Very cute and boyish looking. :)

JOHN....... not everyone was quoting the same. There was one person, the same day that I made a quick quote, that was a whole 1/4% lower than me. And I wasn't charging any fees and my rate quote was putting $1,200 into my pocket. With my assumption to this, a 1/4% lower would put you in the red then. Nobody in a business sense would take a hit to get business, without truly knowing that you will get more in the future. I hear realtors spout this from the mouth often, especially when I was new in the business.

In any case, thanks for the kind words. And yes, that picture was from when I went down to DC, thanks to Patricia Kennedy

ROBERT....... not strange, that it would disappear. Some will argue that is her blog... but I would want all comments to stay, no matter what. Not unless someone was calling me an idiot and being a complete jerk. Then again, if I could become more credible by their comment and make a clean argument, I still would leave it up there. Yes, strange...

Jeff,
Just one question: Who is the guy in the suit & tie hanging out on your profile?

they always want it all... cheap quality doesn't exist. How was your march on DC?

Sorry Jeff for bringing up the realtor vs lenders. I knew that you wrote this geared toward consumers and it's a great message to get out there. My point with bringing that up was that if some realtors who work on commission also want to downplay what a lender does and what a lender charges then it becomes even harder to get the consumer to buy into that as well.

Again regarding the "other blog", it is interesting that she mentions the great relationship she has with her lenders here, written less than a month ago, and is now shopping for a new one to "add to her bag".

http://activerain.com/blogsview/642998/Do-You-Really-Want

SEP

2008

Jeff - Nicely stated on all of your points here. I fully agree with you on this. I have found that during my 12-year real estate career, the best lenders are not the ones that use special gimmicks, but rather the ones who take the time to properly assess the borrower's situation and needs. On another note, I like your new profile pic, but it took me a second to figure out it was you on the dashboard!

Jeff: I couldn't have said this better myself. Great post! About a year ago, I decided I was going to define my business as far as service, fees, etc. I've been going pretty strong now as I believe that's exactly what the client is looking for. I refer to it as either the Nordstrom or the Costco approach. I prefer the Nordstrom way which is about service above and beyond what the client may expect. The Costco approcach is great for the do-it-yourselfer. It's just not in my bag of tricks. Talk to you soon!

Paul

Great post Jeff...

The old adage, "You get what you pay for." still holds true today, more often then not.

You have a great blog and I hope to achieve the success you've had with mine some day. So to that, my hats of to you. I read your blog often and have always enjoyed it.

I was the poster that said the Donna's post smacked of DESPERATION, and it indeed did. If you spend your time fighting over crumbs, don't be surprised when your left feeling hungry.

Robert - She deleted my last post where she was once again speaking about things she clearly had no knowledge of. This clearly suggests to me that when here forceful attempts to "I'll show you what for" are countered by well founded knowledge and reason she couldn't back up her statement and felt it better for everyone to NOT know the truth.

In a nutshell, she is trying to say that a lender can't deny a loan if they feel someones income is in jeopardy. I swear some people will say anything just to hear themselves talk. I told her Block 11 on a standard VOE is ther for a reason.

Have a good night all!

I had a realtor tell me that she expected me to offer my best rate to her clients and that she be updated regularly(as well as the client) with updates. She also wanted the approved HUD1 at available 48 hours in advance.

Sounds like she wanted a discounted loan with full service.

How many realtors will discount their fees and keep the same level of service?

I don't work with that realtor. LOL

SEP

2008

Kudos again on a great post Jeff,

and truth said everybody would love to get Nordstrom's service at a Costco price (great line Paul!) but I do want to expound on the business model a bit to show why that can't happen.

Whatever you are selling, you need to make a certain amount to survive. If you sell at a lower cost it's usually because you count on increased volume to make up the difference. Problem with that is when you're selling service you have a finite amount of "commodity" to sell- it's your time that's for sale.

About ten years ago when I did a short stint for Countrywide, I was required to produce 20 closed loans per month. Now I cap my volume at less than half of that because I have learned that is the volume that allows me the time needed to properly service my customers. Granted we all have assistants, processors and other staff that help out but if you want to be able to contact your loan officer regularly and quickly, then you need to let them charge you enough to make a living.

There are many other factors that affect pricing, but volume does play a huge role. If you want service, you will not get the lowest price.

Gerry Suarez, Jr.

Your HUD Loan Pro!

Excellent post Jeff and a nice summation on best customer service/best rates. When lenders use misleading advertisements and act like pushy sales people it only feeds the negative opinion many people have of our profession. A lender who is educated and enjoys their work takes pride in offering customers an excellent rate and quality service throughout the transaction.

Well said Gerry! Lenders who share that same philosophy need to ingrain this concept into their brains and stick to it and not allow themselves to be fooled and/or bullied into doing anything less simply because some realtor promises to give them future business and definately beware of the realtor that does (RED FLAG!).

Like yourself, I'm also a HUD lender and as you very well know, you don't get rich doing HUD loans (the most highly regulated loans in the market). However, if you do your job and do it well, you can help a lot of people realize the dream of homeownership while still being able to make a living.

Wayne - Great line!

"If you spend your time fighting over crumbs, don't be surprised when you're left feeling hungry."

Jeff - Words of wisdom, as usual.

Jeff, Your problem with comparing rates and mortgage to shopping is that any time at any store, if what you buy goes further on sale, they will refund you the difference. Also, if you take in an ad or something showing price from one store, the other store will match it. Are you or any other lender going to redo the loan, free of charge, because rates dropped? I don't think so. With that, if the exact same model is at various stores, you buy the big screen tv at the place with the best customer service and warranties, and show them the pricing from the other store and they give you the discounted price, and you're still covered under their awesome company name.

As for Donne, You should only speak what you know. I have not "reposted" that blog. It's been posted once, and commented on over 80 times. You should think before you accuse.

SEP

2008

I agree with Donna "you should only speak what you know". That's why I don't blog about selling houses and Realtors shouldn't blog about mortgages.

Now there should be price adjustments on mortgages when the rates go down? Sure just get in line behind the other customers and show them your settlement sheet and I'll refund you the difference in your original form of payment. While we're at it, let's have all the Realtors refund the difference of all the overpriced houses they sold that have since declined in value and are now "on sale" for a lot less. This isn't Walmart.

So I just bring in my P&S and Donna is going to refund me the difference from the house she sold me last year thats now worth $20k less? That sounds fair to me. Maybe I'll go out and start shopping for my big screen tv now.

Cool! I'll be over to watch the Eagle/Steeler Game this Sunday, Roger:-)

As a lifelong Steeler fan in RI I'll save you a seat.

"and truth said everybody would love to get Nordstrom's service at a Costco price (great line Paul!) but I do want to expound on the business model a bit to show why that can't happen."

Gerry - just to expand on your comment - they would actually like to see Nordstrom's service, plus a free gift, at a Walmart price. Unfortunately, you get what you pay for. Great post, Jeff.

Penny,

and they want it yesterday, right?

and why again is that Cadillac more expensive than that Chevy? Is it because they give me service that will "wow" me? Hmmm, guess you do usually pay more for good service. If people can understand it other industries why is it so difficult to comprehend in Financial Services?

Gerry Suarez, Jr.

Your HUD Loan Pro!

It seems I have some explaining to do.

Donna - Late one night recently, I was browsing through a bunch of different groups, reading dozens of blogs and comments and came across your post more than once in my surfing. Now, I am a newbie and not all up on exactly how blogging and posting still works. So, if I misspoke by saying that you reposted when you did not - my bad and I apologize. However, on that note, please feel free to educate me on how one's blog shows up more than once if it's not reposted. I'm listening.

Above All Financial Services - you're absolutely right! I am not a Realtor, which is why you will never, ever, hear me offering some Realtor a bunch of future business for selling my home with no added fees and expenses associated with the cost of selling that home. You will also never, ever hear me ask a Realtor to pay, out of their pocket and/or commission, for those same fees and expenses that are associated with selling my home simply because because I'm too cheap to pay for them myself.

Group - I don't know, maybe it's just us, but when my husband and I sold our previous home and purchased our current home, the first thing we did was speak with a Realtor about the comps in our area, the fair market price of our home as well as the fees and costs associated with that sale.

Secondly, we spoke to a lender, that we already knew, trusted and respected, to determine what we would be able to afford to buy with the equity from our previous home as a down payment. Based on our needs and long term goals, our lender recommended a loan program to suit our situation. After collecting the required documentation for approval purposes and providing a GFE of the costs and fees associated with our particular loan product, we went on our way knowing that we were getting a fair market price based on our needs and situation.

We then chose a Realtor that we also already knew, trusted and respected to assist us in our search of a home. Once we found our home of choice (some months later), we allowed the Realtors to do their jobs and negotiate a mutually agreeable contract between us and the sellers. We had one small hiccup during escrow that our lender and Realtor promply took care of and we closed escrow on time with no major hitches.

Now, some people may think that this is an absolutely WHACKED way to sell and buy a home, but that is the way that my husband and I have always done it (we're in our third house in 13 years) and it's always worked for us. To each is own.

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

Cherry Hill, NJ

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