If you answered with a resounding "YES" to that question, you aren't alone. I can't think of many sane individuals who don't want the best deal possible, and when the word "free" is mentioned... people tend to flock in interest like the George Foreman family to a Bobby Flay BBQ. While it seems the path of least resistance, to jump at what appears to be the least (or no) amount of money for a service rendered or product delivered... it most times ends up the path of greatest disappointment.
Such is life...
Back in some of my more naive years, I used to think that when my parents offered up the timeless cliche "you get what you pay for" that the very slogan they were spouting was probably conjured up by some individual(s) who just wanted to soak up every bit of money they could from unsuspecting folks who needed their product and/or service. Then my naive nature awoke to a staunch reality. There may be something to that.
The Mortgage Business is an interesting one, for sure. We compete on many levels (service, lowest rate, lowest fees, name brand, delivery, reputation, marketing, etc) but it is no more interesting than most businesses who compete on similar levels. Let me digress:
- Have you ever purchased anything from an infomercial you saw on television? Come on, be honest. Okay then, I have. I'll put it this way, there won't be any testimonials airing anytime soon from yours truly on how I became a multi-millionaire while sitting and sipping cocoa in my underwear from the confines of my humble abode.
Perhaps that isn't the best example in the world, yet I think it drives home another age old point of view... "If it sounds too good to be true, it probably is." That written, here's a few Marketing Gems you've probably seen, or things you've said you wanted from the Mortgage Industry that may not be all they are cracked up to represent - or, you were just smart to ask for in the first place:
- No Closing Costs and/or No Fee Mortgage Loans! I've never offered this product. That certainly doesn't mean it is bad; I just am unable to offer it. What it means for you as a consumer is that you'll see a much higher interest rate than the ones the market is currently bearing. Does it make sense? That depends on your situation, frankly. For me, the longer I plan on staying in my home, the lower I want my interest rate to be. If I don't want to pay points of any kind, I should expect a higher rate. The profits are being made somewhere. On no closing cost, no point loans, those profits are on the back-end... in the form of a higher, sometimes much higher, interest rate.
- I want your lowest rate with no fees. Have you ever called a Mortgage Company or Bank and said that? If you have, you aren't getting the lowest rate. End of story.
- I'm going to log on to Zillow.Com or BankRate.Com and get the best quote possible! It's called low-ball offers, folks. The honest ones are typically disclosing at a more expensive pace. You'll probably (from the low-ballers) be getting quotes on 15-day locks (not done nearly as much as you would think, for a variety of reasons) instead of 30 or 60 day locks... which are more realistic, especially in this market. To boot, you may get a version of the bait and switch when you contact that sweet quote and hear that, "Rates change daily, the quote I gave you isn't available as I disclosed." The fact is rates DO change daily, no question about that. Yet, using that to draw in phone calls and emails isn't somebody I want to work with. That's just me. We all make money, as a consumer... I just want a fair shake.
- No Application Fee! First off, I don't believe in application fees at all unless they are applied to paying for the appraisal or refunded if your loan doesn't close. I have a very simple philosophy here, if your loan doesn't close... nobody should be making a dime off of you. If I had charged for every application I have taken in the past eight years, I'd be sipping martini's with Gene Hackman in the Cayman Islands. Sorry, just wanted to work in a reference to the film, "The Firm."
- Does your town or city get a Sunday paper? Mine does. There's a section where Mortgage Companies and Banks advertise rates. I'm not sure about areas outside of Allentown, Pennsylvania... but we used to advertise in there every week. Our advertisement was due by Wednesday and came out Sunday. Is there something wrong with that picture? Yup. Rates could have changed, sometimes significantly, on Thursday or Friday. So of course you get rates that may or may not even be relevant when you turn to that section on any given Sunday.
For what it is worth, my advice is as follows when shopping for a mortgage to buy or refinance a home:
- Reputation, Education, Price. While I wouldn't recommend taking the most expensive deal in town, I don't think it is a splendid idea to jump at the cheapest either. If you want a free loan, hit up Aunt Mary and stiff her while trying to live with yourself. You won't find it in lending institutions of any kind. As long as it takes money to buy things, profits and personal income need to be made to survive and thrive. And for God's Sake, make sure they are prone to calling and/or emailing you back in a very timely manner. If days go by, tell them buh-bye!
Jason Sardi is a human being involved in the Mortgage Industry. Other than being a former star on an undefeated Little League Team, hitting the winning shot "Chip Hilton" style in a high school basketball game to defeat the best team in the league, he has also made a prominent (in the day) high school wrestler who just competed in the Olympic Try-Outs tap out in less than two minutes. Come to think of it, maybe that's why that wrestler didn't make the team.
I can be reached via email at jsardi@ihmci.com or on my cell phone @ 610-653-0317.
Sometimes the best laid plans go unplanned. Before Jennifer moved in with me, she visited a few months earlier. On our way to pick up some mundane cleaning supplies, we accidently came across The Allentown Farmer's Market. Now, despite living here since the tender age of twenty-four, I'd never been there. Okay, so I don't get out much.
Clover Farm's has a stand there selling some of the highest quality meats I've ever had a chance to chow down. While I may not get out much, I've had my fair share of high quality cuisine, working at a few dining restaurants before entering the wonderful world of mortgages.
When God handed out personalities, he/she went the extra mile with Mr. David. This chap has more personality in his pinky finger than most folks have when popping poppy seeds. And he knows his meat (avoid perverted takes on that comment until a later date;)
And here's a buddy of mine from my bachelor days, when I climbed trees, scaled fences, and spent way too much money at the locally watering hole.
To pre-order any of the fine feasts that can be had, contact David at 610-751-4211. And if you still have money left over to buy a home, contact yours truly at 610-653-0317 or email me at jsardi@ihmci.com.
