Tuesday, March 4, 2008

Lending Tree three ring circus

LendingTree, When Lenders Compete You Win!!

When you fill out an internet form for LendingTree.com, you will have lenders competing but it may drive you crazy in the process. What you don’t hear about in the advertising is that you will be bombarded by aggressive sales people all trying to earn your business. Unless you like to talk to sales people in your spare time, the process will drive you nuts. In theory it makes great sense. Competition is great; you just want it to be the right kind of competition. In reality playing the multiple lender game can become a sales pitch nightmare.

What LendingTree doesn’t want you to know is that you can accomplish the same thing by dealing with just one reputable mortgage broker. A mortgage broker has dozens of mortgage wholesalers to get mortgage quotes from. An individual mortgage broker can get mortgage quotes from a variety of sources such as Bank of America, First Horizon, Ohio Savings, Washington Mutual, Wells Fargo, Countrywide, Citibank, Flagstar, World Savings, Chase and National City to name a few. A single mortgage broker can deliver you dozens of mortgage quotes from multiple lenders that they deal with. As long as you are comfortable and confident with the person that you are dealing with, they can save you hours of aggravation and pesky sales calls. The mortgage brokers for GetPrequalified.com can accomplish getting multiple lending quotes for you.

A bank on the other hand can only give you a rate quote on only the loan products that they have to offer. This can be limiting. This is probably why banks have been trying to get mortgage brokers wiped off of the lending landscape. A mortgage broker is not locked into any particular lender or money source. Interest rates change daily. A good mortgage broker can change with the fluctuations to deliver you the best interest rates offered by the different lending institutions. They will get you to the lowest interest rates because they get paid the same regardless of what lender they use. Get the picture?

The other piece of the lending puzzle most people don’t think about is using a local lender in the home buying process. When you use an internet lender, you may be speaking with someone thousands of miles away. If you have a problem with your loan, I’m sure you would want the option of getting in the car and going to visit with your mortgage broker in person so you can speak with them face to face. Problems do occour in a real estate transaction. Wouldn’t you feel more comfortable with someone you can sit across the table from? I am consistently shocked at how many potential borrowers know nothing about the person that is originating their mortgage. A mortgage may be one of the most important financial instruments that you will sign in your lifetime. You probably wouldn’t pick a stock broker in this manner, why would you pick your loan officer like this? Using an internet lender that you have never seen or met is gambling. There is no reason to do this. Work with someone that you know and trust.

Look for a lender that has been in the mortgage business for a minimum of 5 years. Ask them if they could have the phone numbers of the people that have closed loans with them in the last 30 days. There are a lot of people that drift into the industry looking to make a quick buck. The reality is that completing a mortgage takes expertise. You want someone that has spent the time to educate themselves in learning what it takes to fulfill the duties of completing the task. Someone who is professional has a great interest in making sure that you have a positive experience. They want referrals and their reputation is important to them. It should be easy to spot a slick salesperson from someone who is a consultant.

The internet is a powerful tool in the financial markets. Do your research. When it comes to business, personal relationships still rule. Talk to your friends that own property. Ask them if they would recommend the person that did their mortgage to you.

DebtFreeDave
Mortgage Broker



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