Wanting the best deal is usually on most peoples minds when heading into a purchase of any type. We all love deals, sales, getting the best. And sometimes to brag about such deals. Back in 1993, I still can remember a Veteran that wanted a VA loan, yet we had to try to put him into a FHA loan because of his credit. Then that became a problem because he wanted the same deal that his neighbor was getting, who was also getting a FHA loan, but I told him that he had too wait 6 months or so. And back then, credit scores didn't even exist. But he had an employment issue, having 5 different jobs in 2 years with less than perfect credit.
One key point to remember through this whole post, Not one borrower is the same. Even though these two pears look the same from the outside, they aren't the same. You can argue taste, texture, and color, just as a few differences.
Another key point? "interest rates change daily" and "home values can change".
As we look into real estate and mortgages, how many times did someone say these key phrases??..........
-- Well, my neighbor sold their house for $325,000 and I should be able to get the same since we have a similar house.
Okay, so let's look at the differences.
- Does your house have upgrades?
- Is one lot larger than the other?
- Is one house in average condition and the other in excellent condition?
- Does one have a superior view than the other?
- How long ago was that sale? 3 months ago? Values can change...
-- My co-worker just got a 4.50% interest rate with no points and I know it's still out there, so I want that.
How could this be so different for so many? I'll name just a few reasons why.
- Did you see the good faith estimate? It could have many fees on it. You need to compare apples to apples.
- What was your co-worker's credit scores?
- How much money are they putting down?
- Are they getting a FHA loan or a conventional loan or a VA loan?
- What was their debt-to-income ratios for qualifying with income?
Summary : All fingerprints are not the same. This goes the same for those selling homes or trying to buy home or refinance a home. Not one home is exactly the same. Not one borrower is exactly the same with credit or scenarios. What you need to do is be able to pick a real professional and not a wanna be. Please read : Are you begging me to lie to you?
One excellent reason why it can be even more confusing when it comes to FHA loans, when they can be manually underwritten. Compensating factors can make a borrower a better credit risk at times, and scenarios can change quickly.
Overall, there are too many variables when selling homes, buying homes, or trying to obtain mortgage financing for these homes. This is more true in today's market, considering the major changes that have taken place. You have a friend or family member in the business? This doesn't even mean that you will get the best deal. Besides, define best, it might not be the same with your friends or family member. And what about this part... did your friend or neighbor leave something out? How do you know. Did they pay extra somewhere else? Keep in mind, not everyone is upfront and or ethical. Do you want reality or fluff & deception?
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For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
_____________________________________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
______________________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc
Jeff, we all want the best deal, but like you stated there are many variables to consider.
Jeff, I agree we all want the best deal and I am sure you will give the best deal under the circumstances of the particular buyer. That is what I do. I negotiate the best home for my client of what is out there for their needs and wants and taste.
I know loan officers get beat up with this on a regular basis. Water cooler talk between buddies so they hold you accountable for the same rate as their buddy! I just had a seller wanting me to put a housenote amount on a flyer for his property. I told him that wasn't a good idea because there are so many variables and it would be like false advertising on my part. I think its best to always have the customer contact the LO because you are right there are just too many factors
REBECCA... . way too many variables... and it comes down to educating people properly when shopping for anything. thanks
ENDRE.... . well, one problem there, best deal. We need to define best... lol If I gave the best of the best, I would never make money. This is one thing that so many fail to realize and I just think the term "best" gets misused and abused. But I can say that it's reasonable, because I ask the right questions that could save that person thousands of dollars upfront or over the time of the loan. Read my post above, shopping for mortgages and read example # 1.... that is one point that I am trying to make. thanks
MARILYN... . beat up? Nah, sometimes mugged... lol As I mentioned to Endre above, read my shopping for mortgages post and example # 2... I lost a deal because of a sly loan officer. But overall, it just comes down to properly educating that person, no matter what they are purchasing. thanks for your feedback.
Love the no two finger prints illustration, same with borrows.
There are so many factors that go into a loan, and just like a house, there are now two alike, so when I hear, "my neighbor sold for....".
Jeff, I'd be happy if they asked for the same deal their neighbor got. Most of the time they want a better deal than their neighbor got!
Great post and so true. I groan when clients call and in the conversation they start mentioning the other houses sold for such and such and ours is of course better. Every house, even in a development is different, their location is different obviously even if they are the same models, their upgrades are different, so their price is going to be different and of course, their buyer is different.
MISSY... . thanks.. after I wrote that while adding the fingerprint, I thought it was a perfect illustration and example also... and yes, there are way to many variables and issues out there... thanks
GABE.... . lol... thanks for that laugh. I didn't think about it that way. Excellent point and thanks
NICK & TRUDY... . I think many of use go through this and just more than once. It's human nature, right? But we as professionals, need to do a better job of explaining the differences and not back down. And thanks for the polite compliment..
This is really good! So many different factors can impact the rates on a loan or the price on a home - and I've certainly seen people exaggerate just a little when they tell their friends what they got!
What I've found over the years is that the buyer, seller or borrower doesn't really know the details of the "deal" his neighbor, friend or co-worker got. They hear the "great rate", "great price", etc. However, the Devil is in the details which the consumer never really knows.
Jeff this is simplistic thinking always on the borrowers part and we need to compare apples and apples, and so true, the market is always shifting...
NANCY... . I am sure many have exaggerated on what they have gotten on anything in the past... isn't this part of boasting? The ego? etc, etc. thanks and thanks for the compliment.
LENN... . very true... but so many assume and that was part of my point on this. To many variables involved on both sides of the fence. And that devil, he is every where... wait, could it be a she? ;o)
GARY.... . not only do we need to compare apples to apples... but that we need to educate all involved on the differences, and why... thanks
No. Nature, God and Google are she.
LENN... lol.. thanks for the laugh and follow up. And how about country... and planes when named in WWII... ps.. can I marry Google?
Jeff - two very good, and common, example of buyer and seller (i.e., human) behavior. Everyone wants a deal and it ain't just in RE. Who can blame them? But taking the time to clarifiy and educate does wonders.
Love the fingerprint analogy - most appropriate.
Jeff
Hi Jeff -- It is amazing how many misperceptions exists out there and how basic communication is vital as wellas not assuming anything as one really never knows someone's base set of knowledge or views from the start.
Jeff,
I agree with you. When you lie, it comes back to bite you on the ass. I tell it staight.
JEFF... . exactly, who can blame anyone wanting the best deal... but when you think it's just given to you... and yes, it is human behavior.. we just need to educate better... even if there is one that will sell their sole, even though they can sleep at night... thanks and thanks for the compliment about the analogy.
CHRIS.... . I blame many in our industries for these misconceptions... either we don't correct them or allow others to keep stating them... communication and educating is key. thanks
TERRY.... . not sure where you got lying from... but that it comes to the misconceptions that are corrected... and that we need to educate better, and give examples of such posts like this. Just my opinion... thanks
Jeff,
It ain't easy, is it? Agents also face cases where the sellers inflate what they got for their sold home. If it sounds too good to be true...
IRENE.... . nope and if it was, there would be millions doing what you and I do... and I would be rich.. lol And most know that if it sounds too good to be true, that it usually isn't... but it can be so tempting at times. thanks