Doctors and Drug Dealers - A Real Estate Parable

The Doctor walks in and greets his patient.

Doctor: Hello! How are you today?

Patient: How many pills can you give me?

Doctor (taken aback): Um...pills...well, tell me more about your condition.

Pt: Well, I'm in the market for some pills and I'm just checking out different doctors to see who has the best deal.

Dr: I see...well, what seems to be the problem?

Pt: I'm sick and I need some medicine. Can you give me some free samples?

Dr: Before I do that, let's find out exactly what's bothering you. You say that you're sick...let's take a look at your throat. Say Ahhh....

Pt: Hm. I'm not really interested in a full examination right now. I just want to know how many pills I can take.

Dr: Well we have all sorts of different medicines. In order to know which is the right one I'll have to ask you more questions and find out more about your condition.

Pt: I just got off the phone with another Doctor and he said he could give me one month's worth of pills.

Dr: Really?

Pt: Yes. And I spoke with another Doctor that I found online and he's already given me one week's worth of sample pills asking me about half the questions that you've already asked me.

Dr: . Well...let's see...do you have these pills with you right now?

Pt: I don't see how that's important. What kind of pills do you have for me today?

Dr: I think it's important for me to see that prescription before you start taking those. How about you bring me those pills so I can see if...

Pt: I can tell this isn't working. Thanks for your time.

(Patient Leaves)

............................................................................................................................

Getting a mortgage loan is a lot like going to the doctor.

A doctor that hands out pills without asking a lot of questions and examining the patient isn't really a doctor, right? That's called a drug dealer.

The days of 'one size fits all' home loans is gone. Still, it's tempting to ask someone "What's your interest rate today?" and go rate shopping.

The problem is, there are as many interest rate and loan fee combinations as there are different types of medicines...and the person who just gives out interest rates without asking you important questions isn't a mortgage loan professional.

Just like a doctor needs to find out what ails you, a professional home loan consultant needs you to open up and say "Ahhhhh".

Especially today, when the slightest changes in credit scores, down payments, home equity and the like can result in enormous differences in your loan.

And just like you don't want to mix certain medications, a good mortgage lender will take a look at the big picture. What are your plans? What are your goals for this property? How is your overall financial picture?

Rate-shopping gives the illusion of consumer confidence, but what it really does is connect you with the 'mortgage pushers' instead of a decent family doctor.

Meet with your home loan consultant in person. Get a recommendation from a local Realtor or other real estate professional that you trust. Reputation and reliability are the key. You need a mortgage person that keeps their word and gives a fair deal.

But that involves a certain amount of trust.

Now cough! :)

...................................................................................................................................................

Related Articles:

• What's the Interest Rate Today? It's on your Cell Phone.
• California and the Terrible, Horrible, No Good, Very Bad Real Estate Market
• Investing in Hemet Real Estate...Good News and Bad News
• 7 Steps to Fix Your Credit

Looking to buy a home?

Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. To buy or refinance your home in Hemet, Riverside County, or California visit www.HemetHomeLoans.com or call 951.571.5751