Rate quotes are nothing more than a disturbance of the air around the mouth of the speaker. Or a few blips of 1’s and 0’s transmitted in the blink of an eye across the internet.
I don’t know where I got the expression, but it’s a good one: A quote is a quote is a quote.
Too often people focus on the interest rate they are paying for the mortgage loan. I’m not saying that interest rate isn’t important, it is! But if you can’t get the mortgage loan you want, need or are qualified for, what the heck does it matter how many banks you call and ask for rates?
Getting a rate quote is like putting the cart before the horse. Once the horse starts walking, that cart is going all out of whack all over the road. There’s no steering the cart from behind!
I prefer to qualify people first. First, can I even approve you for a mortgage? Next, if it’s a YES to that first question, then what type of loan is available that meets your qualifications? I want to know what your personal and professional life goals are so that I can recommend loan products. Frankly, I like good old-fashioned thirty year fixed rate mortgages. When I understand what your plans are for the future then I can make recommendations to different loan products.
Finally, once we know all of the above, then I look for the best interest rate for your needs.
To me, that seems like a very sensible way to conduct business. Out there in “the world” it is painfully obvious that a lot of other mortgage “professionals” conduct business differently: they start with the rate. Later on, I guess, they deal with all the other complicated stuff about qualifying and approving mortgage loans.
Of course, this is a sales technique like any other. You see, for example, the car advertised for, “$99.00 a month lease new car!” You run to the dealership Saturday morning only to discover the cheap lease was for three selected cars and, oops, sorry, they’re sold already! But we have these other models of the same car. Lease price? $329.00 a month!
Hey, they’ve got you in the showroom. That’s half the battle. Now they’re going to sell you something. The same thing holds true with a quote. Quote, quote, quote, and quote some more. Eventually people arrive in the showroom. Cart-in-front-of-horse.
Me, I’ll put the horse in front of the cart and steer straight and true every day of the week. It’s good for me and it’s good for my clients.