I potentially lost a deal tonight because of false terms that were given by a competitor. I don't mind losing going head to head. Let's compare apples to apples or oranges to oranges.
Anyway, the competition gave a rate that I know is impossible to give. The rate wasn't even within the market for any lender. but then again there were no rates that the borrower could lock into today since the markets were closed. The other lender sits in a real estate office that is not well respected and they don't have to "earn" by serving their clients. Also, the lender isn't charging any closing costs (this in and of itself is not an issue, but the combination of all three are impossible...). I could go on and on. The bottome line is that I've seen this all too often.
Promises are made by a realtor or a lender, but when it comes to putting stuff into "honoring" what was represented the game all of a sudden changes. A rate or scenario is represented when there are no "live" rates and when the market changes tomorrow, good or bad, the scenario represented to the client changes as well.
I've seen realtors say that they'll sell their a house for $350,000 whe the market only calls for a $310,000 sales price. I work with a top 16 realtor in the State of Illinois and she will quote $310,000 when the market calls for $310,000. She'll lose the deal and they'll go down the block to Mr. Switch and Bait realtor to list it for $350,000. Months later the price is either reduced down to $310,000 or the client pulls the listing....GO FIGURE!!!!!
The lender down the street quotes the rate that can't be given and gets the borrower to commit. Later when things are "live" all of a sudden the situation "got more difficult" than expected and the rate went up or the closing costs are now up. Or, even worse, they find out right before closing, "but they lender will make it right" during a refinance....
Why can't there be more honest and integrous people. There have been a lot of lawsuits for people advertising rates that can't be honored. I recruited someone many years ago who said that when advertising, he'd ask what the lowest rate that was being published in the advertisement. But he said that the rates wouldn't be published for 2 or 3 days and by the time the advertisement got published it was a moot point, but IT WAS JUST ENOUGH TO GET THE BORROWER TO CALL HIM....and it was up to him to engage the borrower. He said that it worked most of the time.
Our business would be so much better just having these people kicked to the creek.