What about the bakery whose ad says birthday cakes for $5.00 done in 3 days. When in reality, they normally are $9.00 and take 7 days. You then go to pick up that $5.00 cake on day 3 and it's not ready. You need it today, but now they promise you tomorrow.
How many of us sacrifice good service or
quality for a cheaper price? How many of you think that the level of
service should be the same, no matter what you pay.
So you decide to go with that person that offers the cheaper product and promises you great service. You can't get out the starting gate. You are applying for a FHA mortgage. They promise you the Good Faith Estimate as you were shopping around. It's been days. You decided to go with them, because they were the cheapest. This is just the beginning. What do you think it will be like down the stretch, at the finish line? Do you think you will close on time? Do you think you will end up with the same rate and or costs as you were promised in the beginning? What happened to 5 Star Service?
I have a consumer just this week who is shopping my good faith estimate. I not only beat out the first lender in rate who was Wells Fargo, but they didn't put the taxes, homeowners, and mortgage insurance on the Good Faith Estimate. Does the fact that the overall charges look cheaper then? How about misleading, because you will need to pay for them at the end.
How about the fact that their realtor gave them two of her own choices to speak to. But you know what, it's been 3 days so far and they haven't gotten them over their good faith estimates. And when I spoke to the consumer today, she just said, "maybe they are just busy, so I will give them some more time."
Summary : I am not here to brag, but I think I am busier than 70% of the loan officers out there. But I am still able to get back to her in less than 4 hours with a good faith estimate. Here is what she stated to me :
"The Wells Fargo good faith estimate is much less complete analysis and did not include escrows for taxes, hazard insurance and mortgage insurance. It also doesn't look at a possible seller's credit.
My husband and I want to show your estimate to our realtor and wll get back to you. Thank you for taking the time to be so thorough in our conversation yesterday."
Yet she still wants to wait for others to get back to her. I don't try to pressure, but you then have to look at the reality of the situation. Time is money. Rates move daily. I might end up being more expense 3 days later, because the rates might have improved. And you might make a split decision and it could cost you more in the end. Or, what happens if rates go higher?
What do you get with me? I won't be the cheapest, yet I won't be the most expensive. This consumer is out of state. Okay? I can do the same as the person in your town. The only thing is that I won't be at the settlement table. That is what cell phones are for.
What you will get from me is expertise. You will get good, clear, explanations. You will be able to reach me on my cell phone or e-mail 7 days a week. I will take the extra 30 minutes to clearly explain the whole process, from the mortgage application, to your title charges, to what will happen at closing. Many just want to give you a rate in the first 5 minutes. You will end up with the same rate and fees that I lock you into. And I usually give you answers to many of your questions before you usually ask them. Are you willing to give all of this up for an extra $9 a month in savings? Will it even work out to that much per month? What happens if they changed your rate last minute? Delayed your settlement for a week? It can add up quickly. Just remember this...You usually get what you pay for.
Read this and it might just save you thousands : Consumers need to be aware of these Red Flags !!!!
Copyright © 2008 by Jeff Belonger
Author of this blog : Jeff Belonger
e-mail : email@example.com