They put their blinders on. So many Buyers watch the ads on TV, or listen to the commercials on the radio, and actually 100% believe what they are seeing and/or hearing. I promise you that no matter how many times you see that one commercial where they promise you that their 1% interest rate is fixed for 30 years, once you get to the signing table and they slide that 3” thick stack of papers in front of you, what they told you is not what they’re getting ready to sell you.
They allow themselves to be convinced that saving a nickel in fees is worth the risk of working with an unknown entity. The convicted felon working as a Telemarketer from his basement trying to sell you a home loan is NEVER, EVER, EVER going to be able to provide you with personal face to face service, the comfort and security of knowing your personal information is safe and secure, the knowledge that your qualification criteria is being perfectly matched with the Lender, expertise thru years of required schooling and training, years of experience, moral conduct, and down right good ole fashioned hard work. “I can do this myself.”I cannot begin to count how many times I’ve educated a Buyer, walked them thru the entire process, only to see them convince themselves that they could now gallop off into the sunset and negotiate the largest loan that they will ever take in their lives, never stopping to review anything other than the rate. Suddenly, a couple of years later that same Buyer will call me up and ask if they can pop in for a moment of time. I of course being a fine upstanding member of the community looking out for my fellow man will graciously invite them to stop by whenever convenient.
They’ll tell me how they were told it was a fixed rate mortgage, how the interest rate would never increase, that their property taxes were included in their payment and the best one of all – that there was no prepayment penalty on the loan. After a quick review, what we discover is that the Buyer left us for a Bank, Credit Union, or Direct lender who’s Loan Officer’s are paid to do one thing and one thing only – sell the highest rate, with the highest payment on the loan that brings that institution the most profit over the long haul. I explain to this heart broken Buyer that if they’d stayed with us we would have looked out for them and avoided all of this because we do not work for the Bank, Credit Union, or Direct Lender. In fact, those institution’s profit margins are not of our concern because we don’t make our money with them.
I kindly remind the Buyer of the same thing I reminded them before, that as a Broker I only work for the Buyer and am held to full disclosure – no fine print.
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