MortgagesUndressed

I don’t drink beer. But the tears are there anyhow. Tears of laughter. From the Seattle Times to Blogsville people are being told to compare lenders. PHHHHOOOEEEY, it doesn’t work folks. Here are 5 reasons why:

1- Rates change, sometimes by the hour, usually each day. So how fast do you do your shopping? Answer: This is not realistic.

2- Trickery. Lenders that know you are shopping will bait and switch, promise you the moon to get you to fill out an application, then of course the rate you were quoted is old. Answer: Calling people cold to get quotes is foolish.

3- Apples and Oranges: Oh you wanted a fixed rate, I quoted a Interest Only fixed rate. Answer same as 1 and 2 above.

4- Trust: They don’t trust you, don’t trust you will give them the business anyway so they are not that careful with the quote or their reputation. Answer: Who is kidding whom anyway?

5- Not referred: If they were referred as being honest and competitive you wouldn’t be shopping them, so you really were not given that big of a vote of confidence. Answer: Get an agent to refer you to the lender, tell the lender you are working with the agent to make sure you get the right kind of lender: one that will be fair in pricing and competent to do what they commit to.

I truly think it is Tom Foolery to follow the advice of those who tell you to go on a shopping spree. You aren’t qualified, you get those who can outsmart you, and you get those who are hungry for a deal. You don’t want to be outsmarted and those that are hungry for a deal should not be your lender. Larry Cragun