Comments on: What’s wrong with calling lenders for rates? http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Real Estate Blogs for the Consumer http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-327147 Real Estate Blogs for the Consumer Thu, 23 Oct 2008 17:42:27 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-327147 [...] 7-  Rhonda Porter writes on her blog “The Mortgage Porter” When an appraisal comes in low. and on Rain City Guide:What’s wrong with calling lenders for rates. [...] [...] 7-  Rhonda Porter writes on her blog “The Mortgage Porter” When an appraisal comes in low. and on Rain City Guide:What’s wrong with calling lenders for rates. [...]

]]> By: Kristal Kraft http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-159589 Kristal Kraft Fri, 13 Jul 2007 06:31:52 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-159589 <strong>Real Estate Blogs for the Consumer...</strong> ... Real Estate Blogs for the Consumer…

…

]]> By: RealEstateUndressed » Blog Archive » Magnificent 7 Consumer Articles: 7 June Nominees for 2007 Contest http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-155810 RealEstateUndressed » Blog Archive » Magnificent 7 Consumer Articles: 7 June Nominees for 2007 Contest Tue, 03 Jul 2007 05:21:16 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-155810 [...] 7- Rhonda Porter writes on her blog “The Mortgage Porter” When an appraisal comes in low. and on Rain City Guide:What’s wrong with calling lenders for rates. [...] [...] 7- Rhonda Porter writes on her blog “The Mortgage Porter” When an appraisal comes in low. and on Rain City Guide:What’s wrong with calling lenders for rates. [...]

]]> By: Jillayne Schlicke http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154516 Jillayne Schlicke Sat, 30 Jun 2007 01:43:11 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154516 Hi Ardell Yes, I agree with you, and adding to your observations, I would say a "change" at a corporation and all the adjustments that go along with it give corporations ample opportunities to LOSE customers and also retain customers by turning them into loyal, raving fans. It's when a company screws up that they have their BEST OPPORTUNITY to KEEP that customer. Hi Ardell

Yes, I agree with you, and adding to your observations, I would say a “change” at a corporation and all the adjustments that go along with it give corporations ample opportunities to LOSE customers and also retain customers by turning them into loyal, raving fans.

It’s when a company screws up that they have their BEST OPPORTUNITY to KEEP that customer.

]]> By: ARDELL http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154368 ARDELL Fri, 29 Jun 2007 16:48:28 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154368 I LOVED Jillayne's "things change" line. That is the whole reason behind the RESPA restrictions. They don't mind agents referring business to good and valued and tested other services. They just don't want the agents to feel "obligated" to do so when "things change". They want agents to always test their referred to partners and change at the drop of a hat when "things change". Best always; loyalty never. I LOVED Jillayne’s “things change” line. That is the whole reason behind the RESPA restrictions. They don’t mind agents referring business to good and valued and tested other services. They just don’t want the agents to feel “obligated” to do so when “things change”. They want agents to always test their referred to partners and change at the drop of a hat when “things change”.

Best always; loyalty never.

]]> By: Rhonda Porter http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154304 Rhonda Porter Fri, 29 Jun 2007 13:49:43 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154304 David and Jillayne, thanks for illustrating the point I'm trying to convey. :) David and Jillayne, thanks for illustrating the point I’m trying to convey. :)

]]> By: Jillayne Schlicke http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154158 Jillayne Schlicke Fri, 29 Jun 2007 04:30:09 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154158 All consumers (no matter what their credit score) seek: The lowest rate The best service The lowest cost (fees to obtain the mortgage) A wide range of favorable mortgage loan products The most favorable loan terms The fastest route to closing with no last-minute negative surprises such as an increase in rates and fees, an unexpected change in underwriting guidelines, or a decrease in service on the way to escrow. Rarely does a consumer end up with ALL these things happening at the same time. When that DOES happen, that loan originator and lender have a growing, thriving business. Then, of course, things change. People leave the company for whatever reason, interest rates change, loan products change.....The business of mortgage lending is a constant balancing act which makes the industry so challenging and dynamic. When a consumer ONLY selects a mortgage lender based on interest rates alone, that consumer is an easy mark for a predatory lender, and can easily receive awful service and unexpected change in fees and terms. Logically, it is possible to find the lowest rate and receive great service, too. HOWEVER, instead, I advocate that consumers should learn to be happy with a great, low rate and stop obsessing over getting the BEST RATE or the ABSOLUTE LOWEST RATE. A consumer will drive himself or herself crazy trying to get this. Float-downs aren't always available for all types of borrowers and all types of loan terms, and so forth. Some institutions that offer float downs, also offer really crappy service along with the float down, as I blogged about last week in my post on working with banks. All consumers (no matter what their credit score) seek:

The lowest rate

The best service

The lowest cost (fees to obtain the mortgage)

A wide range of favorable mortgage loan products

The most favorable loan terms

The fastest route to closing with no last-minute negative surprises such as an increase in rates and fees, an unexpected change in underwriting guidelines, or a decrease in service on the way to escrow.

Rarely does a consumer end up with ALL these things happening at the same time. When that DOES happen, that loan originator and lender have a growing, thriving business. Then, of course, things change. People leave the company for whatever reason, interest rates change, loan products change…..The business of mortgage lending is a constant balancing act which makes the industry so challenging and dynamic.

When a consumer ONLY selects a mortgage lender based on interest rates alone, that consumer is an easy mark for a predatory lender, and can easily receive awful service and unexpected change in fees and terms. Logically, it is possible to find the lowest rate and receive great service, too. HOWEVER, instead, I advocate that consumers should learn to be happy with a great, low rate and stop obsessing over getting the BEST RATE or the ABSOLUTE LOWEST RATE. A consumer will drive himself or herself crazy trying to get this.

Float-downs aren’t always available for all types of borrowers and all types of loan terms, and so forth.

Some institutions that offer float downs, also offer really crappy service along with the float down, as I blogged about last week in my post on working with banks.

]]> By: David Young, LO #510-LO-34429 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154154 David Young, LO #510-LO-34429 Fri, 29 Jun 2007 04:17:22 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154154 Rhonda: First, good post. Referrals and a Great Business Approach are the lifeline of any solid business. You provide the latter, and your clients will provide you with the former. Ardell: You have some intriguing elements to your post, however I would be careful about the 810 FICO score borrower with 30% downpayment...we all know that's an exception to the general rule (i.e. a straw man argument = logical fallacy) Rob: Try looking for an "Alt-A" lender (Alternative A lending)...oftentime these guys will do the same loans as the subprime heeby jeebies, but with only a SOFT prepayment penalty instead of a HARD...which means if you refi, it won't affect you...and the prepay can be optional...it just reduces the Yield-Spread-Premium your L.O. makes. Lastly, Ardell: Lock 'n Shop....try Wells Fargo. Ohio Savings used to have a Lock 'n Shop and a List 'n Shop, but the removed it due to non-use...Ohio's now called Amtrust. WF should have a float down. Ciao! Rhonda:
First, good post. Referrals and a Great Business Approach are the lifeline of any solid business. You provide the latter, and your clients will provide you with the former.
Ardell:
You have some intriguing elements to your post, however I would be careful about the 810 FICO score borrower with 30% downpayment…we all know that’s an exception to the general rule (i.e. a straw man argument = logical fallacy)
Rob:
Try looking for an “Alt-A” lender (Alternative A lending)…oftentime these guys will do the same loans as the subprime heeby jeebies, but with only a SOFT prepayment penalty instead of a HARD…which means if you refi, it won’t affect you…and the prepay can be optional…it just reduces the Yield-Spread-Premium your L.O. makes.
Lastly, Ardell:
Lock ‘n Shop….try Wells Fargo. Ohio Savings used to have a Lock ‘n Shop and a List ‘n Shop, but the removed it due to non-use…Ohio’s now called Amtrust. WF should have a float down.

Ciao!

]]> By: ARDELL http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154146 ARDELL Fri, 29 Jun 2007 03:30:21 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154146 When people paid application and lock fees, they often would run two loans. One they would lock at time of application and pay both the application fee and the lock fee, the other they would float with only an application fee. When it was time to close on the house, they would choose the lowest rate of the two loans. When the float rate was always beating the locked rate, lenders started offering lock rates with "a float down" meaning the rate could go as low as the market would bear until closing, but never be higher than the rate on the day of application. We have been in a period of rates being stable or lower for so long, that many do not have the experience of how to apply for a loan(s) during a period of rate instability. Lenders need to have lock and float down programs for people with good credit and 20% down or borrowers need to use two lenders or more. Now that everything is "free" and there are no lock fees, that leaves lenders "at risk" I know. But the answer is not for borrowers to put all their eggs in a higher rate basket. When people paid application and lock fees, they often would run two loans. One they would lock at time of application and pay both the application fee and the lock fee, the other they would float with only an application fee.

When it was time to close on the house, they would choose the lowest rate of the two loans.

When the float rate was always beating the locked rate, lenders started offering lock rates with “a float down” meaning the rate could go as low as the market would bear until closing, but never be higher than the rate on the day of application.

We have been in a period of rates being stable or lower for so long, that many do not have the experience of how to apply for a loan(s) during a period of rate instability.

Lenders need to have lock and float down programs for people with good credit and 20% down or borrowers need to use two lenders or more. Now that everything is “free” and there are no lock fees, that leaves lenders “at risk” I know. But the answer is not for borrowers to put all their eggs in a higher rate basket.

]]> By: Rhonda Porter http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154079 Rhonda Porter Thu, 28 Jun 2007 22:51:50 +0000 http://raincityguide.com/2007/06/28/whats-wrong-with-calling-lenders-for-rates/#comment-154079 Ardell, re. comment 21, are you saying you recommend buyers have two locks with two different lenders. Ardell,
re. comment 21, are you saying you recommend buyers have two locks with two different lenders.

]]>