Mortgage Clients Who Use And Abuse Me

I know I am not going to get much sympathy from Realtors on this particular post. Don't worry, I am not looking for sympathy. However, I think many of you will be able to empathize with me on this.

I am actually writing this for my future, potential clients. If you searched the web looking for an Arizona home loan and you found this post, that is good for you. You just happened to locate one of Arizona's most ethical mortgage brokers. I promise to treat you fairly and not abuse the trust you put into me. I will never lie to you. In the end, like all of my clients who close, you will be very satisfied. I have never had a single complaint with the Better Business Bureau ever.

However, I might not want your "business".

If you already know everything there is to know about the mortgage business- do me a favor and call somebody else. I've been doing this for many years and I still have the opportunity to learn something new each day. If you are more knowledgeable than I am, you will probably need to deal with somebody who is more on your level.

If you think that all loan officers are up to no good- again, please call somebody else. I don't like dealing with people who have no respect for me from the beginning. I am sure anyone can relate to that.

If you are going to shop around a little everyday, with different mortgage companies, getting different rates each time because the market is fluctuating - I definitely think you are better off with another mortgage broker. I don't want you to compare my rate on Monday to my competitor's rate on Friday. What you are doing makes no sense and possibly makes me look bad.

But most of all, if you are going to waste even five minute of my valuable time, without truly considering me as a viable lending option- please pick up the phone and call my competition. I am too busy to deal with people who simply like to waste my time, for whatever perverse reason people do this.

Why am I so worked up today?

I recently had contact with the know-it-all client that mortgage brokers now have to deal with on a regular basis. You know, the guy who watches Suze Orman on the T.V. and has refinanced three times in the past five years and now thinks he knows everything there is to know about mortgage loans. In other words, the kind of client who shows no respect for what I do.

Anyway, I quoted the gentleman a very fair rate and costs. It would be highly unlikely that he would be able to find something better, with a commissioned loan officer, since I am actually "the boss" and can cut my rates (almost) as low as I would like without having to worry about "my cut."

He emailed the good Realtor that recommended me and told him that he found a "slightly better rate". The Realtor tried to defend me, but wasn't able to get through to the guy.

Of course, this slightly better rate means absolutely nothing, as I can almost guarantee the up-front costs were higher on whatever deal he found. You want a "slightly better" rate? I can always give you a "slightly better" rate. However, I try to quote my clients the best rate. That doesn't necessarily mean the lowest rate.

It means that I provide my Arizona mortgage clients the best rate and costs combination that suits their particular needs. Are you going to fix-and-flip your property? Well than I am going to recommend- in your best interest- that you take a higher rate with zero closing costs. If you are going to flip the property, there is no sense in paying closing costs that you will never recoup.

You know, things like that. Things that save my clients thousands of dollars.

Anyway, the guy just emailed me and asked me to provide him a pre-approval letter (or the "LSR" for the Realtors reading this). He didn't realize that the Realtor tipped me off to the fact that he was planning on using somebody else.

He asked if I would charge him a fee for the LSR. Apparently, the company with the lower rate also asked him for an application fee.

So I wrote him back:

"Actually, I do not charge for the LSR or for an 'application fee'. However, I do have to pull credit in order to issue the LSR and I have to pay for that out of my own pocket. It also takes time for me to to all of this and time, of course, is money.

The only reason I am explaning this is because I understand that you found a better rate elsewhere. All I ask, if I provide you the LSR, is that you give me the chance to re-quote you on the day that you are actually ready to lock. You don't need to use me; just allow me the opportunity, since I am spending time and money with you now. Some people actually use me for an LSR and then I never hear from them again.

I hope you can empathize with this. I look forward to doing business together in the future."

Guess what? The guy never responded and it's been a couple of days. (He usually emails me back in a matter of minutes.) I know why. He already plans on using the other company. He was- like so many people have done to me in the past- going to use me for a letter of approval and then call somebody else without checking back with me. Without even giving me the opportunity to be his mortgage broker! And meanwhile, his "slightly better rate" could actually be a rip-off. Or a bait-and-switch. Or anything.

I wonder how people would feel if they were treated this way in their own work environments? I just wish more would live by the Golden Rule. Is that really too much to ask?