So you were sleeplessly sitting up late one night wondering how to get a really great rate. Like most people, you went to Google and typed in: “Really Great Rate.” Right away, you find the top search result as www.reallygreatrate.com. Cool! You click on the link and follow the instructions that quickly lead you completing an online mortgage application. Seems easy, right? Sure, but what happens next?
Chances are, most of you have done this same thing. This is especially the case in today’s tough economy where pocketbooks are zipped tight and wallets lie very, very flat (I can’t even feel mine when I sit down anymore!). Nonetheless, it is clear that the intent of this late night inquiry was to save money, which is what drew you to Google to begin with after all. Whether you Googled “lower my bills” or “really great rate” what follows is similar, but how you handle what you now got yourself into is critical to getting the most out of the experience.
Let me dig in a bit…
By completing the on-line application, you essentially “opened up the floodgates” so to speak. Depending on the site you landed on, you were asked a multitude of questions that were then packaged and can be sold up to 6 times to different mortgage brokers and lenders. In turn, they then started to compete for your business, but how can they compete if they never speak to you?? Therein lies the problem and most of you are not ready for this next step (or steps, for there are many more than most are ready to handle)…
So here’s what will happen…
You will be called and emailed dozens of times by EACH of these brokers or lenders. They will all be leaving “catchy” messages and sending well-structured e-mails enticing you to call back. After all, the site you landed on isn’t a financial institution, but rather an information packaging business that sells your information to these institutions. Thus, by thinking you effectively and efficiently applied for a loan, you are gravely mistaken. Instead, you merely expressed an intent that was sold to a pack of hungry loan officers for a handsome sum.
So…what do you do??
Breathe, relax and trust your instincts. The INTERNET is rapidly becoming THE means for many to not only handle their grocery shopping through Peapod, book shopping through Amazon, and media shopping through Buy, but also to handle their home finances. While you may end up speaking to many brokers or lenders, it is usually in your best interest to rely on the proximity of that lender to your home and good old-fashioned “gut” instinct to make your decision on which one to work with. Is the lender local? Do they have a website? How long have they been in business? Do they often help their customers via the Internet channel? Do they know your market? How does the loan officer sound? Is he knowledgeable? Professional? Did you have a positive conversation? Is he persistent?
Of course there is much more to consider, but this is always your best start to getting to the most honest source. Proper patience and common sense are the steps that will instantly help you “narrow down the playing field.” Options are good, but too many options coupled with endless phone calls and emails can be dizzying to say the least. If your true reason for applying on line was to entice competition, then let it begin and entertain a few offers. However, “garbage-in equals garbage-out”, so don’t string your broker or lender along by not fully disclosing and evaluating everything or by comparing apples to oranges because the broker’s process is very different from the lenders’ which is why directly comparing them to one another doesn’t truly work (see this week’s “Bucket!”).
Finally and most importantly..
Be sure you are really serious and up for the challenge if you “apply” on-line. If your true intent was to get a lower mortgage rate and improve your financial situation, then know what you’re getting yourself into and commit to the process so you can get the most out of it. Otherwise, everyone’s time will be wasted, most important of which will be yours.
Leave a Reply