When Banks Compete, You Lose November 21, 2006Posted by Jay Medina in Informative Articles and Free Reports.
I know this is a negative headline, but I just couldn’t help it. The reason I became a Mortgage Consultant was to help others in a powerful, meaningful way. After spending a year in Iraq, I had a lot of time to really consider what I wanted to do for a living when I got back. I had been in the mortgage business prior to leaving for the war, but when I got home, if I chose a new direction, there was an opportunity to have a clean slate.
However, for reasons that I’ll share in another posting, I re-committed to being a true Mortgage Consultant, and I vowed that I wouldn’t become a “salesman”. There is nothing wrong with being in sales, and I know some true service-oriented sales people that are stellar at what they do. I just couldn’t see myself doing what 99% of sales people do, and that is use high-pressure tactics to make a sale.
Ok, now why did I use this negative headline to get your attention? Well, the other tagline you see and hear on TV is, “When banks compete, you win!” That one got your attention as well, didn’t it? You see, the premise is that when you go to one of those E-loan or Lending Tree websites, you’ll get a stampede of bankers running through your living room, all nudging each other out of the way so they can give you their business card.
Well, that illustration is partially correct. Now is the time for the hard-hitting truth about those ads, and why my headline for this entry may make sense now.
When you visit one of those websites, you are asked to enter in your information. Your name, your home’s value, or the amount you wish to borrow, your monthly pay, etc. Now, what happens next may surprise you or it may not. Basically what happens is they will sell your information to a ton of desperate mortgage companies that paid top dollar for your info. Now is when the stampede of lenders running through your living room happens. Only instead of it really being in your living room, they’ll be calling you. And calling you, and calling you.
I’ve had some clients tell me they had as many as 40 phone calls in one morning! How’s that for a stampede of lenders all nudging each other for your business?
These lenders will tell you anything and everything under the sun to try to earn your business. Is it all true? Well, that depends on the lender. There are some lenders that are taught how to lie. There are some that refuse to lie. However, do you have time to figure out who’s telling the truth and who isn’t?
Remember the old saying, “If it’s too good to be true, it probably is.” Well, this is a buyer-beware scenario at its best. In other words, if some “salesperson” of a lender is singing a song about how you can get a $500,000 loan for a $300 a month payment, PLEASE BE SKEPTICAL. Now, does this mean that you don’t deserve as low of a payment on your home loan as possible? Of course it doesn’t. You deserve the best all this world has to offer! But, being lied to isn’t very respectful to you, and it’s certainly not serving you with the best of intentions is it?
Here is a real good indicator as to how well those lending companies on TV are doing. Go to the better business bureau online and do a search. Take your pick… e-loan, Lending Tree, Quicken Mortgage. You’ll see the real deal when it comes to the Better Business Bureau.
Am I saying NOT to do business with any lenders? No. Again, you deserve the best this world has to offer. I just feel that by working with an assembly-line type of lender, you won’t get the service and options you deserve. In fact, I remember advising one client last month by telling him, “It’s not what they’re telling you, it what they’re not telling you.” In other words, to get that super low payment, where is the fine print and what does it say?
The best way to avoid all this confusion and heartache is to find a Consultant you can trust. If you don’t know one, ask a friend for a referral to a trusted advisor. The fact is, selecting a mortgage professional for the biggest loan you’ll ever have shouldn’t come from the Yellow Pages. Would you pick a doctor that way? How about a Dentist or an Attorney?
My recommendation is to find a consultant you can trust. In fact, I have a testmonials page because many clients I’ve helped would be happy to recommend my services to others. If you think about your last real estate transaction, can you say that about your mortgage lender? If you can, that’s great, you found a keeper! If you can’t or you haven’t bought a home before, then isn’t it time to go with someone you trust?
As a former Sergeant in the Army, I tell my clients this. I’ll tell you what you need to hear, not always what you want to hear, because I respect you and I owe it to you. Meaning, “THE TRUTH.” Sometimes the truth is good news, and sometimes it isn’t. But with the TRUTH, I will always help you find solutions to any problems that get in the way of your home ownership. That same commitment was how I operated in the Army, and how I have been able to build my successful Consulting practice as a civilian.
So, when you select Jay as your Mortgage Consultant, You Win!
Thanks for reading, and thanks for doing something positive today! –
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