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To be or not to be an EXPERT, that is the question - Such as an FHA Expert

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

 

UPDATE : 4/16/09 @ 12:59 pm - I just wanted to add this because of a few comments about the term "Expert".  In my opinion, an Expert doesn't know everything... I would find that almost impossible, about any expert in any industry. But to me, it would be someone that knows more than 85% to 90% of that industry or that topic. One that is on top of their game, on top of the industry changes, can explain things well, and... a biggie here... if they don't know something, they don't give a questionable answer until they have the correct answer. This goes back to researching and actually knowing where and how to find the correct answers, from reliable sources. I just want to add my definition to this before you read this. Here is Expert defined by Wikipedia.  EXPERT

 

 

fha expert & fha specialist

I am a FHA Specialist – FHA Expert

I am a Real Estate Expert

 

A question to the general public out there.  When searching for an expert in a specific field in the papers, online, or on tv....  do you look for the word Expert or Specialist?  Does this comfort you? This can be very dangerous and I will explain why.

 

Even though I have been doing this for over 16 years, it seems that this problem is worse this year than ever before. What problem is that?  Those calling themselves Experts and or Specialists in their respected fields, yet they give tons of misinformation or broken promises. A true Expert is very knowledgeable and if they don't know the answer, they will try and get the correct answer before assuming their answer is correct. But our society doesn't dictate this kind of thought process in many cases. As a sales person, it's obvious that the average consumer will see that you call yourself an expert and as long as your answers are followed by such phrases as, "I guarantee", "I promise", "don't worry", "no problem", "I don't lie", etc, etc....  that the consumers comfort level rises. Let me share a few quick examples with you.

 

 

Example 1 : A few months ago a borrower contacted me from the internet and wanted to deal with an FHA Expert. He felt very comfortable with me because of the information that I supplied online. After speaking to him, I realized that he wasn't an easy case, because he was self-employed with a few tradelines on his credit. I needed to see his tax returns, which took him 5 days. A day after giving me his returns, he asked if I had an answer. I said give me until tomorrow morning.  That next morning I sent him an e-mail with what I could do. His response was that he found another FHA Expert the day before who was able to approve him in 2 hours, that I took too long. His approval was based on no income with 25% down and a very low rate. I told him I didn't believe this could happen with 25% down, especially with a rate in the low 5's. The best I had was 30% down and the rates in the 7's. I decided to follow up with him a month later. Imagine this, he stopped the process later on because the other "expert" ended up giving him a 30% down loan with a much higher rate, so he backed out of the deal.

 

Example 2 :  Just yesterday, a borrower called me from California trying to buy a new home with an FHA mortgage. But the kicker is that she has an FHA loan already and can't sell her home. It can be done, but there are some rules by HUD. She spoke with 5 other lenders in California, in which 4 of them told her that it's not a problem, as long as she rents out the other property. This is partially true, but there are some major obstacles. The long and short of it is that it couldn't be done. If she didn't find someone that knew the full guidelines, she would have wasted time and money.

 

 

asking FHA questions

Let me explain something. I am not god, I don't know everything, nor am I perfect. But I do take lots of pride in what I do and I do consider myself very knowledgeable. And as mentioned, if I am not sure of an answer, I will find out first from reliable sources such as my underwriters. But here is the underlining question..... How do you choose that so-called Expert?  Who do you seek and how do you seek them.

That question is a tough one. My advice is to seek a referral from a friend or family member. But I have seen that get people in trouble also. You can research that specific person and the company by Googling their names and by other searches online.  You can search key words or phrases online and if they write blogs, this is a great place to start.  Just don't always believe what you read if it sounds good. Read other like minded blogs. It doesn't hurt to ask a few others in that same industry to see if their information is correct. The only problem is that you could possibly get 3 or 4 people that would give your the wrong information. And this does happen. Please read : Two Wrongs don't make a right.

 

 

 

Conclusion :  In my opinion, it's a bad epidemic, those that are now claiming to be experts and or specialists, just to make you think that you are dealing with an expert. Sometimes you have to go with your gut feeling,and in many cases, maybe research that topic with more than one source. Just because it sounds good in a blog or online, doesn't mean it's always correct or spot on.

Just recently, I have come across a few loan officers on Active Rain that call themselves FHA Specialists. It scares me, because they claim you need 5% down or 2% down on FHA loans. It's written in stone that the downpayment is 3.5%.  I have even come across a few loan officers that are popular on AR, who claim to be FHA Specialists or FHA Experts who haven't written one post about FHA loans, but just the basics of mortgages. This scares me also, because if you are a Specialist or Expert in that field or industry, you should be able to write about what you specialize in.

 

Overall, I am not trying to be harsh or throw some under the bus. But let's be realistic. Many of us swarm to the internet for information. Many of us have a lot of faith in those that post blogs on AR, just because they are well written.  Anyone can write something that sounds good or make promises. Sometimes you won't know until the end if it will happen or not.  Sometimes the proof is after the fact. and sometimes you have to be patient for a day. But my whole point to this is that you just can't believe everything that you read, especially online. Do your research !!!!

 

 

For more insight on professionals & experts, please read : As professionals, we need to raise the bar and educate consumers

 

 

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Experience & Knowledge at its BEST !!!

 

_________________________________________________________________________________________

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

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 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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Experience & Knowledge at its BEST !!!

 

 

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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

Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

You make some great points. Sorry about the bad stories, but thanks for being there and honest.

Apr 15, 2009 03:47 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

PAUL... .  that's the scary thing, that credentials and in this case, a title, is important to the consumer. I had a borrower once tell me that even though I may be correct, the other person that he was speaking to was an owner of a mortgage company and was convinced that he could fix things.  I not only proved the owner wrong, but the owner was way off on his mortgage insurance estimate by $180 a month. My point... the owner made this borrower feel like he could make things work, just because he was an owner of a company. I knew it didn't matter, but I almost lost a deal because of this.  

Overall, I think you also hit another nail on the head, that people forget that we are in the people business. As far as meeting people face to face?  I will still disagree... it also comes down to confidence and how you talk to people and educate them. Great example.. I just took a deal away from another lender who did this borrowers previous mortgage and we were almost the same in rate. The other guy sounded wishy washy and I game the borrower straight answers.  And he truly felt comfortable with me because of the blogs that he read of mine, my red flag posts, and how to read a good faith estimate, that the other loan officer didn't go over in detail. thanks for your feedback...

 

JP..... .  the part that you mentioned, possibly in another blog, telling people what to look for or how to distinguish a true professional?  In my opinion, that would be very hard. I think educational posts that are easy to read, understand, and follow certainly help.  But I think one of my better posts to help people distinguish this is my post on Red Flags...  Please read : Red Flags consumers should be aware of...  I plan on updating this post in the next few weeks, adding some new red flags. But I have received some business because of this blog, because some people have recognized some of these, especially on the good faith estimate topic.  thanks

JASON C. ..... .  I think if you think you are truly qualified, such as you are in real estate, then calling yourself an expert or a real estate expert... I have no problem with that. It's those that have no clue, but use such titles to impress the consumer to help them get more business. Just as so many are now branding themselves as FHA Experts and or FHA Specialists and after I talk to them, they have no clue or have hardly ever done any before. It's so sad and so misleading. Some may think I am rude when it comes to that, but again, that's reality.  As many no, I don't want to be known as a fluff kind of guy. One loan officer on AR, who is read much, even said that they prefer fluff.  That is very very scary. So, in my opinion, if you know what you are doing, a very good about it, and will spend time explaining things in details & not just telling that buyer or seller what they want to hear... then you should be able to call yourself an expert. And expert can't know everything...  maybe I should have stated that more clearly in my blog...  thanks

TOM B. ..... .  ha ha ha... you funny guy.  lol  But seriously, you and I have had discussions about this and how it irks us when loan officers put very misleading and false info out there.  And thanks for the b-day wishes.

URSULA..... . thanks for the compliment and for stopping by.

ANNA.... .  well, I don't think as many have left as we thought would. I am finding it a tad worse this year than a year ago. I think it makes some people stoop to that lower level when business is slow, because they are just hoping and praying that they can get a deal by lying, misleading, or not knowing what they are doing... and hoping they don't screw up to where they get a bad name or lose referrals... I think it's a poor choice and a huge risk if you are making a career out of mortgages or real estate. But I think many don't look ahead either... they just wing it. In any case, thanks for that polite compliment and the kind words.

 

Apr 15, 2009 03:49 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

I think being an expert may be tough because it signals that you know everything, or just about everything.

Apr 15, 2009 04:28 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

TERRI.... . You make a good point. There was a loan officer from AR in Florida that would refer me to his FHA clients, just because he didn't want to mess that up. I think he could have learned this easily...  but he just specialized in hard money loans and stated/no doc loans. Well, we all know most of those types of loans have left earth for now.  But I think it can be a wise move, as you mentioned, so not to lose those clients or referrals. And thanks for the b-day wishes.  I just worked all day... lol

 

CHUCK.... . I agree that it's way to easy to claim yourself as an expert or as a specialist, hence why I wrote this. In the last year, I have seen more FHA Experts and FHA specialists pop up... and some of these people I know never did an FHA loan up until June or July of 2008... yet they are Experts.  I do believe that you can learn a good portion of any kind of mortgage, but the rest that I know is from experience, learning as I go... and you need to do plenty of FHA loans to know a lot of this and to actually remember a lot of this. Just my thoughts on this.  thanks

 

SCOTT..... .  I think it's good to be stringent on the term 'Expert'. To me it shows that you think about this, have thought about it, take it seriously, and that you don't want borrowers too get the wrong idea. But if you truly believe that you know more than most and that you are very good at what you do, then you should label yourself as an expert.  Just my opinion... thanks

 

CHRIS.... . boy, you hit one of the nails on the head.  That consumers want it now. That is so true and that was in my first example. I am glad that you picked up on this. I even told this client to give me an extra day because I wanted to go over his tax returns with a fine tooth comb, trying to get more income out of it, so I could get him a full doc loan with better lending terms. But he fell for the quick answer and from someone that called themselves an 'Expert'.... and he got what he asked for. Not trying to sound rude, but he got someone that gave him an answer what he wanted to hear in 'speed' like time. And unfortunately, you don't realize it until it happens to you. Which is one reason why it is so hard to truly pick a a very good expert or to define expert. thanks

 

WILLIAM.... .  I didn't.... you should have been here for the 42 dancing girls that stopped by as I was working... oh, wait, I was dreaming... lol thanks for the b-day wishes and for stopping by.

WALTER.... . bingo, that these words are thrown around like hot potatoes and that the average consumer can't truly pick who out who is who.  That is scary and sad...  and in many cases, as I mentioned to someone else, you don't always know until at the end, when it's too late.  thanks

 

Apr 15, 2009 05:21 PM
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Great post and good points.  I agree, if you are not an expert..,don' say it.

Apr 15, 2009 11:00 PM
Diane Aurit
LKN Realty, LLC - Mooresville, NC
Lake Norman Real Estate

Jeff, This truly is an excellent post.  Your analysis and insight is applicable to so many jobs besides lending and certainly applies to Realtors.  Great examples as well.

Apr 15, 2009 11:57 PM
Anonymous
NOAH

Hi, Jeff,

Whether "Expert" or "Specialist"...when used by entities to describe themselves, they mean very little to the customers you serve.  What makes the real difference is your performance measured by past customers willingness to refer others to you.

Jeff, how many FHA loans did you do from 2005 through 2006 when the majority of Lenders would not even consider a government loan for their customers when they could shortcut with subprime, 80/20 and NIV loans?  How many State Mortgage Revenue Bond loans did you do for your first-time homebuyer borrowers?  How many Nehemiah type DPA loans did you do?

Apr 16, 2009 12:13 AM
#32
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Jeff, your post is all about what is happening in real estate for all of us. The ranks of Realtors, mortgage brokers, and associated businesses to real estate are thinning. It stands to reason that as the old song goes, only the strong survive. Being an expert is crucial. We may not be able to claim that we know more than anyone else, but we at least need to know our specialties cold, where we are equal to the best. Sounds like you are one of the best.

Apr 16, 2009 01:30 AM
Rico Suave
n/a - Breeding, KY

At the top, it says, "Mortgage Knowledge at it's best".  The best, by one definition, means "excelling all others".  Isn't claiming that youre mortgage knowledge excels all others similar to the label of "expert"?

Apr 16, 2009 03:52 AM
Anonymous
Bill Burns

You are so right.  EXPERT is mostly a sales word without real meaning.   It is the wise man or woman who KNOWS that they dont' know everything.  In this wonderfully interesting business, NO ONE knows everything.

Truly PROFESSIONAL is all we can aspire to be.

In this age of information glut, caveat ad emptor applies more than ever.  One's job these days is not so much to read and research but to think critically and keep perspective.  To help people with these two things is what professionals do.

Apr 16, 2009 04:00 AM
#37
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

In lending and even Real Estate there are many people who are long on promises and short on delivery.  I have lost many a client as I would not make a promise I knew I could not deliver on.  They often end up with the promise from some one else, but the same or worse situation that I would have given them with more integrity and better service.

Apr 16, 2009 04:49 AM
Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

Jeff - When dealing with the government hierarchy and corporate upper level management they all tell you the same thing. Whether you are taking over as new platoon , division or departments you always find the "Subject Matter Expert".

The "SME" will guide you through all the intricacies of the obstacles you face and will be invaluable in getting the job done no matter what the job is.

So I say if you fall into that category than promote yourself as such.  

Apr 16, 2009 05:25 AM
Gerry Suarez Jr.
New American Funding NMLS 6606 - Orlando, FL
FL Mortgage Guru

To Paul Cahalane in Jeff's defense,

Jeff can say he is an expert, because he has much greater knowledge and experience than the vast majority of other lenders, especially concerning FHA loans. If your definition of an expert is one who knows everything, then you know no experts. I define an expert as one who knows considerably more than others in his field. Taken further it's one who knows where to find the answers he/she doesn't know.

I was on the phone with an u/w yesterday who said she was impressed I even knew where to find the mortgagee letter included in a loan I submitted to her. Truth is, if you don't know where to find ML's, you shouldn't be doing FHA loans.

Gerry Suarez, Jr.

Your FHA Loan Pro!

Apr 16, 2009 06:25 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Remember my client that insisted on talking to the FHA EXPERT from the one post I reblogged of yours?  haha!

Anyways, yes, please, let's concentrate on getting the right information out there.  Consumers are too confused with all the information these days.  I even know that FHA is 3.5% down and I am not a lender!

Apr 16, 2009 11:17 AM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs

If others think you are the expert then you may be one of the best in that field. I think you are an FHA expert because I think you know where to get me the answers. Good job. Wish you were local. Eric 

Apr 16, 2009 12:39 PM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jeff- Great reminder !  It is unfortunate how much misinformation consumers get thrown at them every day and even more unfortunate that a lot of that information is provided by "experts".  At the end of the day, that makes professionals like you that much more valuable !  Same with us being "Real Estate Experts"  : ) .  If every Realtor was perfect, there would be that much more competition.  ~ Chris

Apr 16, 2009 01:35 PM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Jeff; fabulous post, thanks - I consider myself a student of real estate who helps people buy and sell homes.

Apr 16, 2009 11:39 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

KELSEY...... yes, in my opinion, Expert is a very subjective word. And I love dealing with professionals, passing back referrals to each other, paying it forward. But I feel it's very hard on my end, giving a realtor a buyer, because the buyer in most cases already has a realtor.  thanks

DAREN..... I agree and I think so many of us agree that the label doesn't allows fit the expertise.  I have been doing FHA loans since 1994 and I actually labeled myself the FHA Expert around April of 2007.  Around the summer of 2008 is when I saw an influx of loan officers labeling themselves as FHA Experts & or FHA Specialists.  Now, it's okay, if you fit that bill per se....  but I have already come across a few out there and even on AR that have labeled themselves this, yet they either never write about it or that I have found out that they have screwed up or dropped the ball on a few deals. Hey, we all make mistakes, but these mistakes were FHA 101... so how can you be an expert then?  Just curious.. thanks

ROSEMARY..... . well thank you.... in all seriousness, I truly think I am one, because not only do I stay on top daily of any or all changes, but I have done most different types of FHA loans and that experience alone helps me daily when people run into a brick wall... or in one of my examples, when several loan officers are telling the client one thing and I can say without a doubt, that they are wrong. And then I go find the mortgagee letter or the guidelines to prove it to them.  thanks for the kind comment.

JOAN.... . I am sure it is very confusing to the consumer and I even bring this up to them. I even go as far to say that I am lucky that I am in this business, because of what I know and how many other loan officers act and do business, I would be very scared applying for a mortgage, especially in today's market.  thanks

LISE...... I am not so much sorry about the bad stories, because in my opinion, it will always happen in any and every industry.  And it does help me using these examples when writing my blogs because they aren't assumptions, yet they are real stories that I don't make up, showing people that this crap does happen. Not saying that it happens all of the time, but it does happen.  And who to trust?  That can be a tough one, because many people just lie to make others feel comfortable. Thanks for the compliment.

CHRISTINE..... . I'll be honest, when I first labeled myself as the FHA Expert in April of 2007, I did feel a ton of pressure. Thanks for bringing this up.... because I was afraid I wouldn't know everything or that I would make a mistake. But after about 6 months, I realized that nobody is perfect nor does any expert know everythingthere is to know in that profession. Hence why I went back to add my definition and that of wikipedia up top.  thanks for the comment.

 

Apr 17, 2009 01:25 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

You are correct that the word expert has been sadly manipulated over the last few years. The new 'buzz' word that makes people/clients feel more confortable with you and put them at ease.  Someone a few years in the business? Not an expert. Someone that drove thru the neighborhood once on the way to get a bagle on tour? Not an expert.  Clients still have to do the fact finding interview to be sure they are who they say they are and can do what they say.  As your examples show, buyer beware.

Apr 17, 2009 02:07 PM
Jenny Durling
L.A. Property Solutions - Los Angeles, CA
For Los Angeles real estate help 213-215-4758

It's mind boggling how many people use those lables.  When it comes to loans, I always refer my clients to people I know and trust who have experience but also continue their education and keep up on the changes.  Even though I'm a Realtor, I keep abreast as much as possible on such things as minimum down payment requirements. I was completely shocked on Friday when a listing agent told me she was "concerned that the buyers only have a 15% down payment:.  She actually didn't know it was possible to get a loan with less than 20% down!  We're talking about an experienced, long time agent here.  I don't know how anyone can be comfortable advising buyers or sellers if they don't take the time to at least be familiar with the basics at any given time!

Apr 20, 2009 02:17 PM