I'm well aware that most of us fancy ourselves smart shoppers. Whether we are buying a car, groceries, looking for the next Gas Station, sorting through bids on our next Home Improvement Estimate, shopping cell phone carriers...etc... we want the best deal. We want it cheap and efficient.
After over 7 years of being in the Mortgage Business and learning from and being trained by folks who have been in the business since Jimmy Carter took office, I've learned two things. Like any job, this can be frustating as hell, but I absolutely love what I do. I've also learned how to shop smart! I'm only licensed in Pennsylvania and have friends & family outside the confines of where I can lend, they count on me to guide them accordingly.
That written, I want to pass some of my own personal thoughts on how you as a consumer can shop smart to make certain you are getting the best Mortgage for your needs. I'd ask for a drum roll but realize you have better things to do ... so I'll get to it.
5 Ways of Shopping Smart For A Mortgage:
- Begin the conversation with any Mortgage Company/Direct Lender/Bank with the following question, "What's your Interest Rate?" If the person on the other end quotes you a rate, hang up! Well, don't hang up ... that's kind of rude, just say thank you and you'll get back in touch with them. If you are being quoted a rate without them knowing anything about your financial situation, credit score and history, short and long-term goals, they aren't doing their job and won't be doing your situation any justice at all.
- Education is always key. While I love to know the what's in what I'm shopping for, I demand to know the why's of what is available and at what price. Look for a teacher, not a preacher. If they use the two ears they have and listen, what comes out of their mouth becomes all that more important. Your goals and desires and needs are on the line, seek out an advocate of those very things.
- There's another question you should ask, "How do you make your money?" In any 'sales' occupation, this tends to throw some off if the consumer dares to ask that question of the Professional. Ask that question though, it's relevant. If they are doing right by you, they are earning every penny. The price you will be paying for this service will be worth its weight ten times over on one of the biggest financial transactions you will ever partake in.
- When narrowing down who you want to make application with, my suggestion is to narrow it down to three entities. Ask a family member, friend or co-worker to refer you someone they had a good experience with. Go to the bank you hold your depositories (checking & savings accounts) with. Finally, do your own leg work by making a few calls and Internet inquiries, you'll want to shop with at least one Mortgage Broker. Use your gut to get a feel for the guy or gal who just clicks with you and your needs.
- Service & Availability. This is a huge one! Answering emails, returning calls, meeting with you at their office, being there every step of the way and beyond your loan closing ... that's probably the person you'll want to deal with. Having someone to inform you every step of the way and call just to say, "How the heck are you?" is something special & human. I don't know about you, but I want to go shopping at a place that is special and quite human. In the end, those folks tend to treat you the exact same.
Jason Sardi
Mortgage Consultant
First Choice Equity Group Inc.
610-439-2166 ext. 229
Toll Free @ 1-866-262-8720 ext. 229
Licensed with the Pennsylvania Department of Banking
I couldn't have said it better myself. Jason keep up the good work. I liked the first part about the rate. There are so many variables, there is no way to determine what the rate will be until you know more about the borrower and the purchase.
So, what's your interest rate today?
Shaun - Bingo man, B-I-N-G-O!
Lewis - 1% with no closing costs whatsoever, I'm a Grant on Steroids;-)
Easily one of the most awesome posts I've seen from you ever!! This rocks!!! Just like you do... ;-)
Service and Availability have got to be in the list of pointers...good job my lil bro. Hey Jennifer!
Jason, excellent advice. In today's credit climate, getting an interest rate without the L.O. understanding your personal situation is almost useless.
Hey My Sally!!!!
MWA!
Jennifer - Thank you my dear, that means a heck of a lot coming from one of the better writers I've ever read ... on any subject matter!
Sis - To me, that stuff is easy ... a no-brainer. It's what we do and if that can't be provided, I'd look elsewhere if I'm looking at all...
Brian - Utterly useless, if you ask me. Thank you Sir!
Jason, isn't that the first question out of consumers mouths, "what is your rate?" Good points.
Jason,
Good advice...especially about 'rate shopping'!!! Thanks, Fran
Yes Missy, it typically is. The answer is discussed above. I would ask the question to make sure the customer/consumer is someone to be trusted and counted on to deal with. If they can answer that question with a quote, they're probaly farting in the wind. They are probably not worth a dime in a world full of pennies. That's the first question, I just hope it is answered on the other side, appropriately...
Jason, this is one of the most consumer friendly posts I've seen you write and it's FULL of good information for them! If I had to get a mortgage in PA, I would call you without ever checking out those other 2 guys :)
Hey Jason: Thank you! Those of us who are in it for the long haul appreciate your thoughts. Hopefully, and most of the time, the consumer chooses wisely. Have a great night!
Paul
Jason, good tips, thanks for sharing. I like the don't be a statistic video!
Jason ~ great advice, especially when it comes to asking about the rate, there's no canned answer for that one that will work for everyone.
Jay bird...good post as I agree with your 5 points. I want the same sort of great ideas for gasoline.
Nice. Clear, concise... nice. Where's Jason. There was nothing cryptic... I'm confused. Normally you make me work to get your knowledge.
Don't worry, I've done my mental push-ups already today, so you aren't making be brain fat.
That is a great guide. If they answer hang up. If only people would. There was a day when people help lenders and banks in such esteem that they were actually intimidated ( OK only a little ) but the idea and thoughts then were very different. Today, consumers can be very rude already but if they are on the hunt for the cost of money, they will likely be deceived. If on the other hand they seek counsel to make their own "Best" decisions, they would do so much better.
Jason - you rock! I can't see any reason folks wouldn't use you for all their loans! You are the bomb!! I thought I was a smart shopper until I read this one, thanks! ;-)
Jason - I would have never thought to ask "How do you make you money" Just figured all lenders explained this to their clients. Guess I was wrong. I will add this to my list of questions home buyers should ask their lenders. Thanks Jason.......by the way - how do you make you money?
Sandra beat me to the question.... It does appear to be one with an elusive answer because even though I'm in the real estate business and deal with mortgage brokers all the time I'm still fuzzy as far as how they amass their personal fortunes.
Great post Jason! You threw me off with the new title of your blog. Or is it the new picture?
Jason,
As you know I'm not the mortgage expert but I do remember shaking my head in dis beleif at some people Ive dealt with. They would take these teaser rates at like 1.5% for 6 months and then their rate would go as high as 13%. They would rather have the better rate for short periods versus the better service. Doesn't make any sense to me...I'd rather have service over rates in most cases.
Jason - it's amazing how many "shoppers" do not know how to shop for a mortgage - excellent tutorial
Hi Jason,
This is an excellent post for consumers! I would send my clients to you in a minute and know that you would take good care of them. :)
Great advice...honest and insightful... But, regarding the shopping analogy, clearly you haven't shopped with anyone who loves clothes, cars or whatever their additiction may be. My idea of smart shopping is making sure the Manalo Blaniks are basic enough to be timeless...stay away from fashion gimics....buy quality not quantity...shall I go on:)
Jason,
You did a great job on this post---thanks for sharing as well as enlightening us.
Jason -- This is a fabulous post. I love, love, love the morgage guy I work with. He makes my life sooo much easier because he is upfront, honest, dependable, he answers his phone, he buys drinks. . .oops. . .too much information!
All great questions... #1 is my pet peeve but yet that is what everyone is trained to ask first when applying for a mortgage. Another thing I do to help stand out is before I start asking questions about them... I tell them a little about me first.
Jason - great post and information for buyers and agents everywhere.
P.S.... I'm liking the new photo... Jason Sardi in action!
Fran - Thank you kind Sir!
Lisa - Wow, that's means a bunch coming from one of the more prolific Localism Bloggers on here. I appreciate that!
Paul - Right on! You too!!
Mike - I saw that video and thought it was perfect for the subject matter of the post.
Lisa - So very true....
Larry - Perhaps I'll do some legwork and come out with that post as well:-)
Lane - Sorry man, I'll get your synapses firing one of these days again.
William - 'Cousel' Key word my friend ... maybe never more relevant than the times we are in now.
Brad - You're hired ... again! This time, I'm hiring you as my Agent:-) Thanks!!
Sandra - One loan at a time. Actually, back in the day I wrote a post on that. I probably will again soon....
Dano - Ok, I promise to write a post addressing such down the road.
Susan - Probably a bit of both:-)
Diane - No, stop! Ask my Mother how much I like shopping.
Diane Bell - Thank you very much for stopping by.
Lori - Buying drinks? Is that a RESPA violation;-)
Naoma - That's not a bad idea either.
Debbie - Yup, Jason Sardi taking on Corporate America;-))
Love the new photo - maybe it is not so new.... I have been away more than here - great adivice
That first step is awesome.
Hang UP!
People don't get that when they rate shop they're just asking to work with the best liar, not the pro that will really come through for them.
The best way to shop isn't to ask for rate but references.
Great stuff, Mortgageson.
Thesa - About a year old, I need to take another with a camera other than my phone.
Joey - References are a biggie! Mucho Grazie Master Asterbaum!
Jason, AWESOME!!!!!!! Great post. You really gave some great advice my friend
Fantastic! I almost got fired for my blog on rate shoppers....yours was sooooo much nicer...almost poetic. If you ever need a job in Charleston, SC give me a jinggle. We actually don't have rate shoppers here. LOL!!!
Matt - Thank you my friend. Have a great weekend!!!
Melissa - I would love to see that blog, lol. Thank you for the very kind words.
Jason, Excellent info the buyers and helping them along with the loan process. Now, at least, they know someplace to start and what to ask for.
Grossman - I hope this helps, I think this provides a nice reference point in shopping for a mortgage in any market.
Sardi...
I didn't think you wanted me to comment on your local stuff :)
Correct me if I'm wrong.
TLW...ROAR!
TLW - Your comments, opinions, suggestions, snide remarks, & general presence is always welcome:-)
Hi Jason- I know that I wish you were licensed here......in California. This Post is almost as good as calling you; not quite, but almost :) :)
Sardi...
Albeit it rude...I think they should hang up :)
TLW...ROAR!
Good post. The first question they ask is, " What are the rates? " and some dishonest people mention low rates to get them in to sign papers .
Kathy - Thank you very much! In due time ...
TLW - Beware of a phone call soliciting you to refinance a property:-)
Gita - That's the nature of the beast, sad but true.
Jason, THANK YOU! A short list of what to do in looking for a lender. This post is a keeper.