Why you should be unapologetic when buying or refinancing a home
“Sorry about all the questions!” texted back my new client.
I smiled and assured him it was fine. Not only were his questions reasonable, but they allowed me to prevent issues with his mortgage application.
I did feel a tinge of annoyance, but it wasn’t directed at him. It’s this darn mortgage industry!
It’s all the loan officers out there that treat people like they’re an inconvenience after an application is received. Like you’re wasting their time. But what about YOUR time, doesn’t IT have value?
I want you to know that it’s okay to ask questions.
It’s okay not to know anything about loan programs, mortgage closing costs, or interest rates. It’s OK because the mortgage industry has worked really hard to keep you intimidated and in the dark.
People that are intimidated tend not to argue or doubt. They will be easily taken advantage of, and that is how large profits are made.
Consider the following story as a lesson on why asking questions is a must.
I have a USDA purchase loan down by St George that’s one appraisal report away from closing. Lucky for them, the borrowers found me on Google after getting pre-approved with their local bank.
The bank pre-approval? It was for an FHA loan with a down payment, higher interest rate, and higher mortgage insurance.
Why the bank would get them pre-approved for an FHA loan when they were clear candidates for USDA is beyond me. Most likely because the bank couldn’t offer USDA loans, but they really wanted to get the business.
If you’re not sure what the difference between a bank and a mortgage broker is, you might want to read my article on it.
Look past the brand name, the expensive advertising, and the fancy offices, and you will see a somber truth. Borrowers are being taken advantage of every day, and have been for years. You’re being charged a higher interest rate for the convenience of using your bank. You’re being placed in the wrong mortgage loan programs. Even worse? Veterans seeking VA loans are the most vulnerable, and the most taken advantage of. The one category that we can all agree should be protected at all costs.
There are many many things wrong with the mortgage industry.
But you are not powerless unless you choose to be. Unless you choose to be silenced.
In the words of a good friend and mentor: “Sorry is such a crazy word. Typically the people who should use it never do. And those that have no need to apologize use it overwhelmingly”.
The industry disruption won’t come from technology, though the advent of technology has definitely helped. Technology can’t help human nature – we can help human nature. Your individual decisions, when you choose to exercise them, will shape the landscape of all of our futures.
This is your permission to challenge how things are done, and demand more.
Stop being fed answers, and start asking questions. Value yourself, your time and your money. And be unapologetic about it.
I’m just an email away if you need me: [email protected]
