Beware of the Salesman!

Moe Bedard from loanworkout.org defined it best,

I think we are just a bunch of consumer advocates that are hell bent on exposing the truth.

I know I am and I’m sure my colleagues here feel the same way! With that said, onward we go…

To quote my fellow colleague Graeme K. Brown in an earlier post:

The unsuspecting homeowner has a difficult job too. They need to sort through emails, phone calls and direct-mail pieces to find the right person (company) to secure a loan for them.

How do you know when you’ve found the right person/company? Who will uphold their fiduciary duty in servicing the client; integrity in tact?

• We have the W-2 employee working under the appropriate licensing of their broker

Then,

• We have the National Association of Mortgage Brokers who offers (3) three levels of professional certifications
• We have the Mortgage Bankers Association of America who offers similar certifications
• And lastly, we have the Certified Mortgage Planning Specialist designation. Some will even venture to acquire the Certified Financial Planner certification

Now you might think, “go for the one with the highest designation, everyone else knows didly squat!”

Wrong!

This is where I say be careful & follow your instincts.

The thing is, looks can be deceiving! Like that slick Financial Advisor in the pin-stripe suit with those fancy print-outs. You think, “Wow, this guy really knows his stuff!” But really it’s all marketing antics brought by good looks and a little software.

Look for knowledge and understanding beyond “what” they are suggesting. Know “why” they are suggesting it and be sure that they know as well because it goes without saying, if they don’t know their “why,” you’re talking to the wrong professional.

My suggestion…

Ask for referrals from the following sources:

• Your Realtor: a colleague of mine said, “the proof is in the pudding…” Certainly a Realtor has worked with a couple of loan originators that they can recommend. They’ve closed deals together before and the client has been happy. (I won’t get into the discussion on in-house lenders…maybe we can leave that for another day. Please?). But I will say beware the Realtor who says “I can do your loan for you!” Run I say…run! Can you say, master in one trade, expert at none?
• Your CPA: in the thousands upon thousands of tax returns they file for clients each year, certainly they must know a lender or two. But again, beware the CPA who says “I can do your loan for you!”
• Your Stock broker: for obvious reasons they should know someone who can gather appropriate financing for you. If you don’t have a stock broker, ask the wealthiest person you know to refer one to you. They’re a stock broker because they’re good with money and certainly their loan professional is good with it too.
• Your happy-go-lucky married friend: ask them who they used to finance their home purchase. If they were pleased with the service, they’ll refer someone to you without hesitation. If they’re facing foreclosure and they’re not so happy-go-lucky anymore, the service wasn’t so great and you probably can do without the referral!

I won’t recommend family…for some reason I’ve seen family screw grandma for a dollar and that just isn’t nice! But of course, if you’re in good hands, then you’re in good hands.

Now that you have some referrals, next comes the honeymoon phase. This is where you get to know each advisor and ask thought provoking questions about your particular scenario. But be careful, don’t “rate shop” for that is an act in futility; the below referenced quote will address why. What you’ll get instead is lender after lender beating each other up until one has offered the so-called lowest rate or has baited you with an ill-fated promise of the lowest rate on a 30-year fixed, no pre-payment penalty. You’ll come crawling back saying “but he said…” and that would just be an unpleasant sight. On the other hand, if they have a what (a solution) and can demonstrate why, then this evidences knowledge beyond taking an application; this is what you’re looking for. And sometimes you’ll find it irrespective of designations.

Just remember, keep you instincts close and,

As much as possible, deal only with good and honorable people. If you deal with good people, you won’t need a contract, and if you are dealing with bad people, no contract can protect you.

Adam M. Aron
Chairman and CEO of Vail Resorts, Inc.

Now if your BS detector is on and each of them talks to you in the smooth talking lingo that salesmen are taught, you can always contact me.

Share This

This post was found on BlownMortgage
Follow the link to get to the orginal message.