Are we larger than life just because we work for a large company or a well recognized name in the industry? Examples of this would be Wells Fargo, Bank of America, RE/MAX, or Keller Williams.
You as a consumer, when shopping for that realtor or loan officer, do you first search for that large name? A company that is recognized on tv, in the paper, or by word of mouth from friends and co-workers?
Do you think that you will get the best deal by going to a large company? Or is it security, in fear of the company going bankrupt, so your decision is based on bigger and established?
This is not to throw any one individual or company under the bus, but just recently, I have spoken to 4 separate borrowers who all started their process with Wells Fargo. Not only are they being told that it could take 45 to 60 days to close their transaction, but many of their loan officers aren't supplying accurate information. I actually had one borrower who was told incorrect information by 3 different loan officers from the same company. Many of us would think if the majority of the people say the same information, that it must be correct. Unfortunately in my opinion, this is not longer the case now, especially when it comes to mortgages.
Yes, it comes down to education, education, and education. And no, I am not saying that you have to be educated with a degree from Harvard. But that the person servicing you, helping you through the transaction, should be educating you on the whole process.
In the world of mortgages, we say that there are two types of loan officers.
1.) A true professional, who is on top of their game, knows most programs and can explain them, will give you good customer service, and will be more than fair with you when it comes to rates and costs OR
2.) An order taker. Someone that could easily work at a fast food joint, in which case, sometimes your order doesn't come out the way it should. The same in mortgages. There are loan officers that will tell you what you want to hear, even if they don't know if the answer is correct or not. People, it happens.
So, how do you pick your loan officer or realtor? Does a large company name matter to you as much as you think it should? Again, there are very good people at both large and small companies. But from my experience with consumers in the last several months, it seems like there are more order takers at the larger companies now than ever before.
Pros & Cons - Many of you think that just because that company is one of the largest, that they are a safe choice and that you should be able to get the best deal. This is not always the case. Back in 1998 or so, Norwest Mortgage was the largest lender out there. They were bought out by Wells Fargo, even though it was for name sake for the larger scope of things. And now look at Countrywide, who was the largest, until Bank of America just bought them out.
Best price/rate from a mortgage company? How about service? Do you know that there is a small price for excellent service and that in many cases, what is promised or advertised as the best price, usually doesn't come with the service. Same goes for realtors. Just because most real estate transactions have a 6% fee, doesn't mean that if you get it lower, that you will get excellent service. Again, are you looking for the giant to make you feel secure or are you looking for the one that isn't selling you false hope or promises.
Summary : Many consumers don't understand the mortgage and real industry. One main thing that is forgotten in many cases. Most of us are 100% commissioned. In many cases, these are you least experienced and least knowledgeable in the business. Many would think that service should come with their real estate transaction at all times, no matter what. At many larger companies such as Wells Fargo, if you talk to someone on the phone, they are part of a call center.
Keep this in mind.... Many that I know in both real estate and mortgages love their jobs, and truly love helping people. Many of us will go out of our way, even if it means we will earn less. But we don't work for free and I hope I can speak on behalf of other realtors and loan officers. This is not McDonalds, where service comes with a smile. Many of us are dedicated and passionate in what we do, because it's not a job, but a real career. Just think about this next time when you are speaking with a realtor or a loan officer. What do you truly want? In my opinion, it should come down to the person that you are dealing with, not the company. Sure, reputations do make a difference, but that is a whole other topic. Bottom line, you are dealing with people.
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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 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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