I want that same deal that my friend got !!!!

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

 

pears

 

Don't we all, want that best deal...  My first several transactions in my second year in 1993 in the mortgage industry were interesting ones at that. I still can remember a Veteran that wanted a VA loan, yet I had to try to put him into a FHA loan because of his credit. And then that became a problem because he wanted the same deal that his neighbor was getting, who was also getting a FHA loan, but I told him that he had too wait 6 months or so. And back then, credit scores didn't even exist. But he had an employment issue, that he had 5 different jobs in 2 years with less than perfect credit.

One key point to remember through this whole post, Not one borrower is the same. Even though these two pears look the same from the outside, they aren't the same. You can argue taste, texture, and color, just as a few differences. 

Another key point?  'rates change daily' & 'home values can change'.

 

 

so many mortgage & real estate questions

 

As we look into real estate and mortgages, how many times did someone say these key phrases??..........

  --   Well, my neighbor sold their house for $325,000 and I should be able to get the same since we have a similar house.

Okay, so let's look at what the differences could be.

  • Does your house have upgrades?
  • Is one lot larger than the other?
  • Is one house in average condition and the other in excellent condition?
  • Does one have a superior view than the other?
  • How long ago was that sale? 3 months ago? Values could change...

 

  --   My co-worker just got a 5.00% interest rate with no points and I know it's still out there, so I want that.

How could this be so different for so many?  I'll name just a few reasons why.

  • Did you see the good faith estimate?  It could have many fees on it. You need to compare apples to apples.
  • What was your co-worker's credit scores?
  • How much money are they putting down?
  • Are they getting a FHA loan or a conventional loan or a VA loan?
  • What was their debt-to-income ratios for qualifying with income?

 

fingerprint, explaining why borrowers are different from each other.

 

Summary :  Not one person has the same fingerprint. This goes for the same for those selling homes or trying to buy one or refinance one. Not one home is exactly the same. Not one borrower is exactly the same. What you need to do is be able to pick a real professional and not a wanna be. Please read :  Are you begging me to lie to you?

Overall, there are too many variables when selling homes, buying homes, or trying to obtain financing for these homes. This is more true in today's market, considering the major changes that have taken place. You have a friend or family member in the business?  This doesn't even mean that you will get the best deal. Besides, define best, it might not be the same with your friends or family member. And what about this part...  did your friend or neighbor leave something out?  How do you know. Did they pay extra somewhere else?  Keep in mind, not everyone is upfront and or ethical. Do you want reality or fluff & deception?

 

 

 

 

 

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

For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit

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


Copyright © 2009 by Jeff Belonger

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

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

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Tammi Copsey 07/25/2010 01:52 PM
Topic:
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Location:
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Tags:
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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WALTER.... . I agree, this market is allows changing. It would be like asking a doctor to cut back on their fees, but to make sure that I live after the surgery.  And yes, even if the deal looks the same, it will still be different.

TONY.... .  yes, that one always cracks me up. I guess it's the same reason why I look at other business differently than so many. I respect that everyone needs to make a living and if I don't trust that person or company, to just go some where else...

FRED..... . yes, it's that damn passion..  ;o)  thanks.  And that is also another good analogy, that one size doesn't fit all. thanks for the compliments.

GERRY...... . yes, I could have even used a picture of two apples.  ;o)  But wait, you mean I can't get that 4.5% rate?  Well, it would cost me some money though....

BRIDGET..... .  good point. I agree, we deal with this everyday, but just a better reason for that buyer or seller to trust us even more. The problem with that is they usually end up trusting the wrong people based on the wrong false promises. Hence why I love writing posts like these to educate. And thanks for the congrats and for the compliment.

AUDREY.... .  there is always something that is missing... well, most of the time. Even when the source is giving the information, how do they know what to truly look for, hence why they would miss some of the information and probably relay the other pieces of information in wrong fashion. But they know better, right?  Hence why they have other jobs that they do and that they rely on us. Anyhoo....  thanks for the compliment.

SHARON...... .  even if it was last week, that market has changed slightly. People just don't realize this. Hence why we need to keep writing about this and educate the public every change that we get. And thanks for the kind words..

KRISTI..... .  I think many fudge... they want to have the bragging rights, the upper hand. So many want to better the other person, even if it's their best friend or co-workers. And thanks for the polite comment.

 

Mar 02, 2009 08:40 AM #60
Anonymous
Kim Knapp

I haven't had time to reead any blogs lately. Not any time to even reead this one. Howver the title alone is worth KUDOS! High Five Brother!!! If I had a dollar for everytime I heard that I would retire!

Kim

Mar 02, 2009 08:57 AM #61
Rainmaker
84,360
Simon Mills
Mills Realty - Toluca Lake, CA

Great post.  What amazes me is most people don't know what their own mortgage is yet they all seem to know what their neighbors is!

Mar 02, 2009 09:58 AM #62
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Jeff: Thank God I haven't been asked that. I think if the communication between us and our borrower is good enough, it shouldn't matter. If it does, that's not the client for me!

Mar 02, 2009 10:13 AM #63
Rainmaker
32,281
Craig & Sue Guffin
Coldwell Banker Monsees Realty - Sedalia, MO
Sedalia Mo Real Estate

Good post. I totaly agree with the fact that most "other guys" puff up the deal that they actualy got or leave out details about what it cost them to get it. Thanks for the post.

Mar 02, 2009 10:27 AM #64
Rainmaker
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Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Jeff, Congratulations on a wonderful and very true post. No two people are alike and no two homes are either....there are so many things that may affect pricing.  Great information for All of your readers.

Mar 02, 2009 11:22 AM #65
Rainmaker
562,261
Chris Olsen
Olsen Ziegler Realty - Cleveland, OH
Broker Owner Cleveland Ohio Real Estate

Hi Jeff -- Great advice and I hope all buyers learn this.

Mar 02, 2009 12:31 PM #66
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Christopher and Stephanie Somers - Realtors - Philadelphia Real Estate
Realtor / Owner - RE/MAX Access - Philadelphia, PA

Jeff - Great post !  You are right, every person and every deal has its own fingerprint !  It is important for us (realtors and mortgage pros) to communicate the pros and benefits and explain why this deal may be different from a past deal.  Even then, sometimes they still do not get it, but for the most part they do !!!  ~ Chris

Mar 02, 2009 12:44 PM #67
Rainmaker
70,512
Loan Survivor Real Estate Financing Expert
Purchases, First Time Buyers, Pre-Approvals, Refinance - Birmingham, MI

Just happened to me today.  Borrower told me that her friend got 5% with no points, now won't settle for any rate higher than that and found a lender on the internet offering it.

It's just like gamblers that go to Las Vegas - you only hear about what they win, not all their losses. 

Same goes for the people that want the same deals as their friends - you don't get all the facts.

Mar 02, 2009 01:20 PM #68
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
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KELLY.... .  thank you very much... in regards to truth and being tweaked, why people fall for that or look for that?  In many cases, it just comes down to the person that they are dealing with, that makes them feel comfortable with such Red Flag words as... "don't worry", "no problem", "I promise", "I guarantee"... etc, etc. I have even had clients tell me this, when I proved someone else wrong, their response was,.... but they were very nice. In my book, nice doesn't cut it. These are my opinions, but many would agree with me.  thanks

BILL.... . there are no two apples a like and I should have used the picture of apples now, which would have made this even easier to understand. But yes, it comes down to the fact that we need to educate borrowers and consumers... and this is a good reminder for ourselves also. Thanks for the compliment.

MATHA.... . even those with the smarts don't have the common sense to think about that, that they don't understand why they can't get the exact same deal. And yes, use the fingerprint analogy any time. Thanks for the compliment.

HAL.... .  in my opinion, it's not so much that people think they are the same, but it is sometimes because of their loan officer and or realtor, because they don't explain this. They just let the client assume and they don't educate them on this. That is the frustrating part and what hurts the whole process.

LARRY.... . I think this is an excellent reminder for not only borrowers, but for us as well. And those that compare what their friends and neighbors got when it was like 6 months ago, really irks me, because apparently they don't listen to the news then... especially on how much the market has changed drastically in the last year.

AMY.... . the exact same house?  hhhmmm.. that is hard to do, right?  You sometimes wonder what happened to common sense. Overall, it just comes down to people like you or me, to explain the process, to educate, and to make people understand. Thanks for the polite comment and definitely use the fingerprint analogy, because I am sure if would help some. thanks

CHRISTINA.... . you and I know this and yes, so many want the same. But it's our job to educate those to make them understand on how this works... and to clear up any misconceptions. thanks

 

Mar 02, 2009 03:06 PM #69
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Jeff Belonger
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JENNIFER...... .  the get quick rich schemes that we see on tv?  Those have been around even before the market and real estate crashed. Those that sink their money into this, without doing the proper research, I don't feel sorry for them. Yes, if it was that easy to buy homes for just $50, we all would have many. It's sad, but we just need to educate others about this. Overall, I loved your last sentence, about the grass looks greener on the other side, yet to find out that it was spray painted green. Thanks...

CHUCK..... . yes it does happen a lot. But even being a buyers agent, there has to be some buyers that expect the same that another buyer received. Even some realtors in the comments above have even mentioned this.  thanks

JANET..... . I will just thank you for the polite compliment.

CLAUDETTE..... . it is annoying when consumers seek our professional opinions, yet they still listen to friends and neighbors, who aren't in the business. And you wonder why so many things get screwed up. And yes, there are just way too many variables. Thanks for the polite compliments.

SHARON..... . yes, I agree with everything that you mentioned. I didn't get into all of the details, but you did even bring up a good point about sales concessions and such also.  I'll add that part, so thanks.

JP.... . it truly does come down to educating the consumer. And yes, it does come down to showing the new clients the difference to what the other people received. But this can be hard at times, because unless you helped those same people, you will always be missing some of the information needed, to make an accurate assessment. and thanks for the kind words.

STEVEN.... . yes, we do have to be careful what others proclaim and we must educate them on the differences.

 

Mar 02, 2009 03:35 PM #70
Rainmaker
110,444
Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

Some local lenders are sending daily rate sheets but are putting plenty of disclaimers on them.

Mar 02, 2009 03:49 PM #71
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Jeff, Great post. The  Real Estate and Mortgage market is changing daily like the stock market. People do have the option to lock in the rates .

Mar 02, 2009 11:22 PM #72
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Jeff Belonger
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JASON.... . lol... how funny, yet so true. But that would be too easy, right?  And you hit the nail on the head. Price can mean different things to so many. As you and I have talked about, the best price is not necessarily the best deal all around for the borrower. And thanks for those kind words and thoughts.

TERI.... .  there is no one size that fits all and we truly need to get this across to so many. And thanks for that polite compliment, much appreciative.

DAN.... . yes, we are all different, even in how we sell. And for those that ask for rate and the lender just gives it to them without asking questions... gee, no wonder we have issues today.  thanks for the compliment.

DORIE.... . thank you, thank you, and thank you... Seriously, I was glad that this all came together very easily as I was writing it. Especially the fingerprint analogy. Thanks for stopping by.

CHARLES.... . well, I am going to disagree some. Depending on if you are talking about the consumer or the realtor/loan officer.  I truly think that some do lie and embellish from any side of the fence. Even the consumer... it's called playing the sales person, to see if the sales person will stoop to give you better. People will do this.  thanks

KIM.... .   maybe you should have each person that does say this give you a dollar then.  ;o)

SIMON..... . that is true also. Besides, unless you know all the details of your neighbors mortgage, you just can't compare, even when it was 10 yrs ago, in an easy market. Just too many variables. And thanks for the compliment.

 

PAUL.... .  well, I guess it depends on how you get your clients... what area... and a few other variables. Because no matter how good I know I am, I have gotten this. It doesn't matter if they are referrals from realtors or past clients... the internet, etc, etc... people do think this and act on it.  And I will disagree about the communication aspect of it also... because I think I have excellent communication with my borrowers. And this just happened recently...  from a past client of mine that I am trying to refinance. Last minute, they found out that a niece of theirs does loans. She is actually a processor... so they had to check her out... wasted a few days, but they came back to me because I was cheaper. 

But that is off subject a tad.  Overall, I think the more business that you get and the more that you are in front of the public, you will get this. And if it wasn't brought up, maybe that client never told you or asked. Just food for thought.  And just a fyi... even if and when a client says this to me, I will take the time to educate them on the ins and outs... and try to retain them.  Even if I dislike it... thanks

 

Mar 03, 2009 05:04 AM #73
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Jeff Belonger
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CRAIG...... . I am sure this happens more than we think. Yet, unless you have every detail in front of you, from that person, you can't truly compare apples to apples. thanks

CAROLE.... .  I am sure many of us agree with this, yet we still have people out there thinking differently. That's where you and I come into the mix, needing to educate everyone on this, making them aware of this.  thanks

CHRIS.... .  thanks for the compliment and I hope many buyers learn from this... thanks

CHRISTOPHER & STEPH..... . you hit the nail on the head... we need to communicate this to the borrowers and to the sellers, educating them before they even jump into the process. For so many sales people, in my opinion, they just give in...making the borrower think that it's possible to get the same exact deal and not educating them on the differences. That is where people like you and I, the true professionals, will step up and take that extra time and effort to educate them.  thanks

DREW.... . great example, that you usually only hear about someones winnings and not their losses. And that 5% rate with no points... gee, who knows if the fees are even jacked up. But there are loan officers thinking rates are coming down, and will lower that rate in hopes that they do come down. If not, you will have a pissed off client and that's where you and I come in, to educate them. thanks ps... I'll get back to your e-mail. thanks

BRENDA.... . gee, imagine that... and I wonder how small those disclaimers are. I stopped sending rates sheets out since 1999.  Anyone can hand out a rate sheet, but can they get them that rate and or close the deal. I'll try to bring a different value to the table, other than just rates on a sheet of paper.  ;o)  thanks

GITA..... . yes, the market is changing and people do have the option to lock in...it's when that loan officer doesn't go over that lock option when the borrower is shopping...  that is misleading in a way.  thanks for the compliment.

 

Mar 03, 2009 04:29 PM #74
Rainer
4,399
MARYANN SUMARAGA
Vandyk Mortgage Company - Groveland, CA

I love this topic and always get the phone call that they want what their family, neighbor or friend got.. no one has the same financial profile... and I find mysels always stating this fact, and then I have to hear they got a rate of?? and I have to say when was that.... either way people just seem not to trust these days and keep shopping, the sad part is that if they would have just commited to let a professional who know the market to help them they probably would have gotten the interest rate when it was there. Facts are everything to price out the loan and most shoppers don't tell you everything.

Mar 09, 2009 03:48 PM #75
Rainmaker
147,596
Gary Miljour
Starboard Financial - Tempe, AZ
Mortgage Lending for Arizona and California

Jeff,

Such a great post,

I know clients that can't remember how much they paid for a home, their payment or interest rate 3 months into the deal. 

It's a great talking point around the water cooler at work, but like you said everyones situation is very unique and different. 

 

Oct 14, 2009 11:19 AM #76
Rainer
128,627
Dan Quinn
Berkshire Hathaway HomeServices PenFed Realty - Silver Spring, MD
Dan Quinn

Very well done Jeff.  The pear illustration is perfect and speaks loud and clear.

Jul 19, 2010 03:09 AM #77
Rainer
41,727
Tammi Copsey
Perry Hall, MD

I'm late to this party, but this is an EXCELLENT post!  Thanks for allowing re-blogging...I think I'll do just that :)

Jul 25, 2010 01:43 PM #78
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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

 

MARRYANN... .  bingo.. what you just stated is a blog in itself, which I have written about. As loan officers, we need to know many answers to many questions to determine the interest rate and type of program.  If they won't give me that time of day, I just move on now.  When I first started out, I wasn't like that, trying for their business all the time.  But they you get caught in the middle of those that would low ball their rates.  thanks for the cheerful comment.

GARY.... . it's an easy conversation around the water cooler... how many even fudge what they got or might not have a real clue, just to brag.  I hear it all of the time.  Just hear one the other day, to where the woman is upset that they can't get a loan, but their friend just got a loan who was foreclosed on a mortgage 3 months ago.  I said, well, I doubt it.. she said, they wouldn't lie.  I said.. yea, but whose name is the new mortgage in now?   Just to many unknowns.  thanks

DAN... . thank you very much... it was either the pears or the apples.  ;o) thanks for the compliment.

TAMMI... .  thanks for the kind words... I am actually shocked that you would be the first to reblog this one. I am almost positive that reblogging was around the early part of 2009.  I just wrote a post about reblogging today.  Again, thanks for the polite compliment.

 

Jul 25, 2010 01:55 PM #79
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