UPDATE : 4/16/09 @ 12:59 pm - I just wanted to add this because of a few comments about the term "Expert". In my opinion, an Expert doesn't know everything... I would find that almost impossible, about any expert in any industry. But to me, it would be someone that knows more than 85% to 90% of that industry or that topic. One that is on top of their game, on top of the industry changes, can explain things well, and... a biggie here... if they don't know something, they don't give a questionable answer until they have the correct answer. This goes back to researching and actually knowing where and how to find the correct answers, from reliable sources. I just want to add my definition to this before you read this. Here is Expert defined by Wikipedia. EXPERT
I am a FHA Specialist – FHA Expert
I am a Real Estate Expert
A question to the general public out there. When searching for an expert in a specific field in the papers, online, or on tv.... do you look for the word Expert or Specialist? Does this comfort you? This can be very dangerous and I will explain why.
Even though I have been doing this for over 16 years, it seems that this problem is worse this year than ever before. What problem is that? Those calling themselves Experts and or Specialists in their respected fields, yet they give tons of misinformation or broken promises. A true Expert is very knowledgeable and if they don't know the answer, they will try and get the correct answer before assuming their answer is correct. But our society doesn't dictate this kind of thought process in many cases. As a sales person, it's obvious that the average consumer will see that you call yourself an expert and as long as your answers are followed by such phrases as, "I guarantee", "I promise", "don't worry", "no problem", "I don't lie", etc, etc.... that the consumers comfort level rises. Let me share a few quick examples with you.
Example 1 : A few months ago a borrower contacted me from the internet and wanted to deal with an FHA Expert. He felt very comfortable with me because of the information that I supplied online. After speaking to him, I realized that he wasn't an easy case, because he was self-employed with a few tradelines on his credit. I needed to see his tax returns, which took him 5 days. A day after giving me his returns, he asked if I had an answer. I said give me until tomorrow morning. That next morning I sent him an e-mail with what I could do. His response was that he found another FHA Expert the day before who was able to approve him in 2 hours, that I took too long. His approval was based on no income with 25% down and a very low rate. I told him I didn't believe this could happen with 25% down, especially with a rate in the low 5's. The best I had was 30% down and the rates in the 7's. I decided to follow up with him a month later. Imagine this, he stopped the process later on because the other "expert" ended up giving him a 30% down loan with a much higher rate, so he backed out of the deal.
Example 2 : Just yesterday, a borrower called me from California trying to buy a new home with an FHA mortgage. But the kicker is that she has an FHA loan already and can't sell her home. It can be done, but there are some rules by HUD. She spoke with 5 other lenders in California, in which 4 of them told her that it's not a problem, as long as she rents out the other property. This is partially true, but there are some major obstacles. The long and short of it is that it couldn't be done. If she didn't find someone that knew the full guidelines, she would have wasted time and money.
Let me explain something. I am not god, I don't know everything, nor am I perfect. But I do take lots of pride in what I do and I do consider myself very knowledgeable. And as mentioned, if I am not sure of an answer, I will find out first from reliable sources such as my underwriters. But here is the underlining question..... How do you choose that so-called Expert? Who do you seek and how do you seek them.
That question is a tough one. My advice is to seek a referral from a friend or family member. But I have seen that get people in trouble also. You can research that specific person and the company by Googling their names and by other searches online. You can search key words or phrases online and if they write blogs, this is a great place to start. Just don't always believe what you read if it sounds good. Read other like minded blogs. It doesn't hurt to ask a few others in that same industry to see if their information is correct. The only problem is that you could possibly get 3 or 4 people that would give your the wrong information. And this does happen. Please read : Two Wrongs don't make a right.
Conclusion : In my opinion, it's a bad epidemic, those that are now claiming to be experts and or specialists, just to make you think that you are dealing with an expert. Sometimes you have to go with your gut feeling,and in many cases, maybe research that topic with more than one source. Just because it sounds good in a blog or online, doesn't mean it's always correct or spot on.
Just recently, I have come across a few loan officers on Active Rain that call themselves FHA Specialists. It scares me, because they claim you need 5% down or 2% down on FHA loans. It's written in stone that the downpayment is 3.5%. I have even come across a few loan officers that are popular on AR, who claim to be FHA Specialists or FHA Experts who haven't written one post about FHA loans, but just the basics of mortgages. This scares me also, because if you are a Specialist or Expert in that field or industry, you should be able to write about what you specialize in.
Overall, I am not trying to be harsh or throw some under the bus. But let's be realistic. Many of us swarm to the internet for information. Many of us have a lot of faith in those that post blogs on AR, just because they are well written. Anyone can write something that sounds good or make promises. Sometimes you won't know until the end if it will happen or not. Sometimes the proof is after the fact. and sometimes you have to be patient for a day. But my whole point to this is that you just can't believe everything that you read, especially online. Do your research !!!!
For more insight on professionals & experts, please read : As professionals, we need to raise the bar and educate consumers
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- Mortgages -
Experience & Knowledge at its BEST !!!
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For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!
Copyright © 2009 by Jeff Belonger
