I am still amazed that I get offers in my mail box from mortgage companies that list out all the products they currently carry. As if someone is going to hire them because they named off a product that sparks their interest. I got an offer the other day that read something like this.
Here at XYZ Mortgage we have all types of loan products:
My thoughts that come to mind is how can average Joe Home-buyer understand what any of this really means. Picking a mortgage is NOT like picking fruit. Its really hard to pick a bad piece of fruit, and when you observe it upfront, you know if you have a bad one or a good one right off the bat. I sometimes wish it was this easy when picking a mortgage product. If you pick the wrong mortgage, it could cost you a lot money in interest rates and closing costs. Also if you make a bad selection, you may have to choose another product later and spend that cost again. I have seen clients come to me to refinance and state that they wish they would of made a better decision upfront when they bought the home. Even though your mortgage broker will love you, refinancing every couple of years, can be expensive and a waste of money.
In todays market, a mortgage product is complex. Picking the right product requires that you sit down with a mortgage professional who will guide and educate on the best products based on your unique situation. I will tell you, I hear some mortgage professionals state a 30 year fixed is the same where ever you get it from, and I would disagree with this statement all day long. A basic loan product like the 30 year fixed loan, can have many different variables. You may decide to buy the rate down permanently or temporary. Your 30 year fixed may or may not require mortgage insurance. Your 30 year fixed may come with a higher rate because of higher or lower credit scores. With so many variables, you cannot possibly choose the right product for your unique situation without talking with a qualified mortgage professional.
Hiring professionals is worth their price in gold. The amount of money saved is worth getting good financial advise. Most people would never think of preparing their own tax returns. Heck mine is so complex today, that if I did not hire a professional CPA, then I would have no idea of all the tax benefits I get. His advice alone has saved me thousands of dollars over the years and his fee does not even come close to these savings.
We are unique people out there. We expect better then "would you like fries with that drink". I just have learned to use my Midwest values and transfer them into my mortgage business. If you are looking for something a little more unique in your next mortgage loan, please do not hesitate to get a hold of me.
My name is Gary Miljour and this is what I do best.
I provide full service mortgage planning and guidance for the Tempe/Mesa AZ community. I specialize in helping first-time homebuyers obtain homeownership through FHA, VA and conventional mortgages.
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I think the idea is to show they are not a one size fits all company. Those who don't know the fine points can at least see there is variety and options, and perhaps one of those options will fit their needs.
I think I received one where they offered to pay my car insurance for a year:)
It's NOT like picking a fruit? I thought money grew on trees?
Those mailings get immediately filed in my garbage can.
They're probably trying to confuse people and rope in clients that way.
Rosario- I agree with mortgage professionals having many options. I just think this type of marketing is bizarre at best. Its like you receiving a coupon in the mail for a free scoop of ice cream at the local ice cream parlor and they share with you the 65 different flavors they carry.
Average Joe Homebuyer needs someone like you Gary to sort through the complexities. Even realtors need help working with lenders cause the mortgage industry is ever changing as well!
Gary Great Title for your post. I believe most of the time if they are advertising what types of loans they can do it is just advertising. The one that I really hate is when they send out the neg am offers without disclosing what they really are.
Neal- Was it "So Easy a Caveman Could Do It", I love those GIECO commercials. Thanks for the comment.
Martin- I also throw these offers out. Thanks for the comment.
Danielle- Confusing mortgage offers is partially why we have to problems today with the mortgage market. Thanks for the comment
Bill- Hearing from you that you thought the information was valid means a lot. Thanks for the comment.
Gary- With regulations right around the corner, I think mortgage products will get even more complex. Thanks for the comment.
Matthew- Most states, like Arizona will investigate companies who do that and do not disclose it properly on their advertisment. I would just send a copy of it to your government body who oversees loan originators. That company will be investigated. This is the worst type of advertisement. Thanks for the comment
Gary: I'd hire ya! Great post...and so very true! For me, it starts with educating my clients. I want them to KNOW what they need to know to make the right decision. Blessings!
Elizabeth- I can have to agree, it really just boils down to educating your client. Once this is done, the process becomes easy for everyone involved. I am glad to know that I would be a trusted advisor. Thanks for the comment.
GARY: I am a huge proponent of using a mortgage broker. I have made this suggestion to each client that I work with. Some that have not taken the advice and gone directly to a bank or online lender have had problems with the deal. In today's market, it's more important than ever to use a professional. Nice post!
Adam- The most important thing as you state is that they work with someone who is going to give them the best professional advice. Thanks for the comment.
Gary,
Good point. I've seen those mails that you talked about in this post. Most people have no clue what many of those abbreviations are so it only confused them even more. It is very true that picking a good mortgage lender is very important in getting the right loan.
By the way, thanks for the comment on my blog!
Dave
Dave- Thanks for the postive feedback. I actually subscribed to your blog. You post are great.