This is definitely a crazy time for the mortgage industry and the banking industry as a whole. From a person who has been doing this for 15 years , things have never been crazier.
I come to work everyday trying my best to deliver people honest information and great mortgage loans. I strive to earn every-one’s trust whether or not I get their business. From my side of the table, it’s more about perception rather than reality. With the amount of information that is out in the world, some right, some wrong and some half right, my job has been to educate those on recognizing the difference between the three.
I watch the mortgage markets everyday and I know where the rates are being priced by the various lenders in the market, and my rates and pricing are typically in the top 95% of what is being offered. On top of that, I can offer unmatched levels of service and knowledge, but in the end none of that matters. The only thing that rings true in a clients mind is whether or not they believe that they got a great deal.
Sometimes too much information is available and customers have a hard time filtering what they hear, read and are told. In the end it comes down to trust and relationships. I can show you the math, I can educate on the process, I can help you shop my competitors but none of that matters if you can’t trust me. In the business of selling a commodity, consumers have a hard time sifting through countless explanations and often give up when trying to make heads or tails of a deal.
I recommend people look back at one of my previous posts “The Elusive Mortgage Price” to get some insight on where I am going with this. It can become very frustrating as a salesperson when you know you have the best deal but still lose the client. It’s usually the result of fear that consumers have of the unknown, a company they never heard of , or a price better than the big banks.
It reminds of a client I worked on a couple years back. Bear with my whining for the time being. The customer was referred to me by a realtor I’ve known for years. It was a complicated buy and sell purchase transaction and I spent several weeks going through all the options and structuring a loan that would accomplish all of the goals. I provided several GFE’s ( Good Faith Estimates ) on the various options and thought I had done a great job earning their trust. A couple weeks went by and I followed up with the customer to see where we were at. He informed me he had went with another lender ( A large retail Bank ) . I inquired on the rates he was offered and found that he took a worse deal than I was offering him. He explained that although I did have the better deal, that something had to be fishy. He had a hard time understanding how I , a small local mortgage broker who rides his bike to work, could offer him a better loan than this large corporate American banking institution. Basically, after all the time I spent with them, he didn’t trust me. He got to know me, knew where I lived and worked, was referred by some one he trusts and I still couldn’t earn his business. C’est La Vie!
This is a good lesson for those struggling to press forward in today’s market. You don’t always win! However, you must be confident in yourself and continue to push on through all the red tape, mis-information and hurdles to your business. These situations are the same in business as in life. You know yourself best, get up early work hard and let the chips fall where they may.