There's a lot of information on the internet. Google currently lists over 1.3 MILLION pages for the seemingly simple two words, "Mortgage Rates".
You'd think with that many pages, getting a mortgage rate quote would be pretty easy. Wrong!
Everyday I receive a query or two on Mortgage Rates.
I can sort these mortgage rate questions into three distinct categories, each one receives a slightly different response. Let's start with the best and work to the worst.
1. The Full Loan Application:
With a full loan application, I have the information to find and quote the best rate and program to fit the financing you need. Your cost to complete a full application is ZERO (No application fee). Your obligation is also ZERO. However, if you like this loan and rate... it is LOCKABLE. Right then - right now!
Rates can change multiple times a day, your rate quote can be easily updated at any point in time. The complete application also tells me you are serious. You get my full attention.
Here's what I'll need. 3 months of Bank Statements, 2 Years of complete Tax Returns or W-2's, and 1 Month of Paycheck Stubs. Fax those three things to my online secure fax (800 745-1032), I'll send you a loan application as a .pdf, get that back to me and you are done!
2. The Mini Loan Application:
16 questions. That's what I'll ask you. 13 of which can have a tremendous impact on your interest rate and fees. While not a complete loan application, armed with the answer to these 13 questions, I can get a close approximation to what you would qualify for.
To make it easy for you I have a quick little online form.
Unfortunately, this loan is NOT Lockable. Like the quote? You'll have to move up to the Full Loan Application.
3. The Phone Call:
"Hi Mike, what's your rate on a 30 Year Fixed?" Don't get me wrong. I don't blame you. Shouldn't it really be that easy? Unfortunately, it's not. And it's only getting more complicated.
Should you happen to call me and ask, my answer will probably be something to the effect of, "I have rates from anywhere from 5% to 10%. Which one would you like?" Not very helpful - I know. But it'll start the conversation we need to have. I'll attempt to move you up to number 1 or 2 above. If I can't. I wish you all the best, (I really do) but have a nice day.
I feel your frustration. Why can't I just get a simple rate quote over the phone? You can. From a loan hack (salesman) who isn't interested in doing what's best for you. They'll quote you the very best rate from last week knowing full well it doesn't exist today, or you'll never qualify for it, just to get you in the door.
Mike, you certainly have strict rules...
The truth is that it's not me. It's the business. Look at some of these Titans in the industry. Dan Green in Chicago, Rhonda Porter in Washington, Brian Brady in San Diego, Jeff Belonger in New Jersey, and Robert Ashby in Florida. These Mortgage Professionals know exactly what it takes. They are all True Mortgage Professionals. They "Practice" home financing, not sales calls. Call them for a rate quote and they'll do the exact same thing.
Looking for financing?
Now that you know your three options, pick one and call me!
(925) 288-9977 Ext 104
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My rule of thumb is that someone needs to ask me what the rate is 5 times. By the 5th time - I've normally gathered enough information to give them a more narrow RANGE - but not always a quote. Nice post.
Love options. They help so much in any sales situation.
Eleanor - I like that. Maybe this post comes off a little too harsh. It isn't meant to be.
Case in point: Here's a quote response from this morning after my post on a Zillow Mortgage Quote.
"Mike, I would like to get a good Faith Estimate of Closing Costs. Can you send that to xxxx@xxxxxxx.net? I will call you at (925) 288-9977 ext. 104 after I have received it. Thanks"
We all know the lies a GFE can contain. But the point is that this consumer went online in search of a Rate. Zillow provided the vehicle for me to deliver a rate (much like my #2 Rate Quote).
I'll give this potential client a quality GFE based on the very limited information I have at this time. The important part of this is that it allows me to start the conversation.
This potential client will either move to an enhanced version of #2 or better yet - move to a full loan application and receive an accurate GFE based on a real lockable rate and program that fits their needs.
Or Option Number 3 - They'll attempt to shop by GFE. We, who know better, know they'll lose playing that game.
From an originator stance, wouldn't we all like to have full loan applications? Wouldn't we be able to do a much better job?
From the public stance, with the internet trancparency, and free flowing information why is it so hard to get real interest rates?
We have a serious disconnect here. I applaud this person for taking the initiative to request a GFE. Good for him!
Karen - Yes, they do.
Ross - Very true - thanks!
Excellent post for Consumers to take heed too. Eleanor's system is pretty efficient as well. If you are doing things right, a run of the mill conversation can be an application without the customer even realizing it. While it is a good idea to shop, doing it smartly will make sure the quote your given is an accurate and attainable one.
Mike...... I agree...excellent post for the consumer. In regards to this post coming off harsh? Nope.... direct and to the point. Many consumers are starting to appreciate that and not the fluff that so many threw at the average consumer.
Overall, when someone doesn't want to answer my questions, but still wants a rate... I say..."I can give you 2% fixed".... some of said... "huh? you can do that"? I say...."yes, but I can also change that rate, because it's not there"... " you answer 10 to 12 of my questions, then I can be very precise with my rate".... but I still want to see credit when I do this....
Overall...Good post... and thanks for the polite mention.