Can you shop for a Mortgage the same way you shop for a Car or a TV or a Dress or anything else?
To an extent, Yes. But, for the most part, NO!
When you shop for a Car, you go to a few dealerships and see what they have to offer. You not only get their price of the car, but you get the price they're willing to take for your trade-in. Getting the trade-in value is very important because they might be giving you an awesome price on the car, but cheating you out of hundreds or thousands on your trade-in, but you didn't pay attention to that part. Also, as long as the cars have the exact same features, dealerships will allow you to bring in a quote from one place, and they'll match it if you want to buy at the place with great customer service.
When you buy a TV, you're going to go to a few stores to see who is offering what, what sales are going on, and if they are aware of a future sale, as many know in advance when sales will happen. Again, you get all your pricing from the different stores to compare. You also need to compare their warranties, and if they're going to charge you for an extended warranty, and how much. Most stores will allow you to bring in an ad or a quote from a competitor and they'll match it. Because of this, it's good to go back to your favorite store who had the best customer service and best warranty combined, and ask them to match the lower price, and voila, you get the best of both worlds. In addition, if the TV goes on sale in the next 10-14 days (depending on which store), they will give you the sale price difference of what you paid. You never have to worry about buying today verse next week because you're covered.
Clothes shopping is the same way with a Sale. If you buy something one day, and it's on sale the next week, you can bring in your receipt and get a credit back for the difference... And, if you don't like the dress or the TV, you have so many days to return the items for a full refund.
Can you do this with a mortgage?
Can you say, "Hey, Mr. Mortgage Guy, I know you're giving me great service, but Discount Broker down the street is offering 1% less on their rate with no fees. Match it!"
Can you say, "Hey, Mr. Mortgage Guy, I closed on my house yesterday, and now rates have dropped a half a point. Can you refund me the difference?"
Can you say, "Hey, Mr. Mortgage Guy, I closed on my house a couple of weeks ago, but I don't like my neighbors. Can you cancel my loan, and just give me back my down payment and fees and such?"
Shopping for a Mortgage is nothing like shopping in general, so I don't know why people try to compare the two. The only thing that's the same is you go to multiple places to get as much information as you can, but the mortgage guy gives no pricing guarantee.
Donna, interesting comparison. No pricing guarantee, I really like that. Realistically, we are all pulling from the same pool, it is often a case of who you want to do business with. Rates, fees and process don't really compare to service and confidence in your "Mortgage Guy." Sometimes, the lowest price really isn't the best deal.
How true how true....you cannot compare shopping for a material item to shopping for a mortgage....
Fred, Yes, it usually boils down to being comfortable with the person you're doing business with.
I love the analogy. Also, it is far easier to evaluate the final "product" when it is a dress or a television set.
Jason, Thank you.
Ruthmarie, True, to an extent. Did you hear that report a few months ago about some department stores using "thinning" mirrors that make you look better, so when you get home, you look very different?
Okay... I am not sure if you were suppose to make me laugh, but I did. :-) "I don't like my neighbors..." If only that worked. You may be able to start a new mortgage product.
John, I usually write "tongue in cheek" so it's ok that you laughed! I don't like one of my neighbors, but they've been better since they finally got rid of their constantly barking dog!
Donna... interesting post & comparisons. And if I were you I would return that mortgage for one in a more flattering color. This one does not go well with your skin tone and hair color! :)
Steve, I'm so fair-skinned, sometimes it's hard to find good colors.
HI Donna: I have clients who do make mortgage brokers compete and comparison shop. They scour over those GFEs with a fine-tooth comb, often forgetting that the guys who quote the lower fees probably are incapable of closing the loan.
Elizabeth, I don't disagree with shopping for a rate and comparing fees and such to make sure you get the best deal for that day. I'm just saying that committing to a loan and mortgage person is different than actual shopping because you have recourse if what you buy goes on sale, but you don't have recourse on an interest rate once you're locked and in underwriting.
Not really. Although the consumer is more educated than ever which is good, a mortgage is a big and often confusing subject. It's best for the customer to take the time to do it right. In other words, insist on meeting more than one loan officer before deciding. That's prudent! Thanks for the great post.
Paul
Paul, THank you!
This is the best blog I've read all day. So insightful. I wouldn't be surprised if your're the top agent in your market Donna Harris.
It is amazing to me that people do not make relationships with mortgage professionals in the same manner as agents or financial planners. Calling around shopping for the lowest priced financial planner or agent is dangerous. You do get what you pay for. Thanks for the post.
Greg, Ahhh, shucks *blush*!!
Rick, You're welcome, and thank you for your insightful comment.
Fair skinned? Maybe you should go outside and soak up some sun to warm up your blood a little bit. You don't look "pale" or pasty in your photo? Hmm.
Greg, I don't look pale or pasty because I'm wearing a warm color that makes my skin look good. I don't do well in black, red, or pale pinks or pale yellows. Plus, all my freckles tend to look blended together, hence one big freckle and a tan. LOL
Maybe it was the "lighting" in your little video that made you look as though your skin had more color. You have lots of freckles? I have tons of those little brown ones. I hate them. My mother used to tell me they were kisses from God. I have some on my butt, so I find that hard to believe.
What colors DO you look good in? Dang! I prefer solid colors like black, dark blues, greens and reds or even a bright white.
I hate browns, tans or sandy colors I end up looking like a pine tree, only not as tall and hard.
Ok, so I'm exagerating with the freckles, they aren't "that" bad. I tan nicely in the summer. Colors I wear are dark like purples, navy blue, hot pink, greens... My mom begs me to wear melon colors, but I hate melon colors, ick!!
Donna Harris with Los Lomas Realty,
Please update your photo with some hot pink melons.
We are all on standby and eager to see the new look!