Do you go 3 extra miles out of your way to get your gas 5 cents cheaper per gallon? To end up with longer lines or for the gas attendant that takes their time?
What about the bakery whose ad says birthday cakes for $5.00 done in 3 days. When in reality, they normally are $9.00 and take 7 days. You then go to pick up that $5.00 cake on day 3 and it's not ready. You need it today, but now they promise you tomorrow.
How many of us sacrifice good service or quality for a cheaper price? How many of you think that the level of service should be the same, no matter what you pay.
So you decide to go with that person that offers the cheaper product and promises you great service. You can't get out the starting gate. You are applying for a FHA mortgage. They promise you the Good Faith Estimate as you were shopping around. It's been days. You decided to go with them, because they were the cheapest. This is just the beginning. What do you think it will be like down the stretch, at the finish line? Do you think you will close on time? Do you think you will end up with the same rate and or costs as you were promised in the beginning? What happened to 5 Star Service?
I have a consumer just this week who is shopping my good faith estimate. I not only beat out the first lender in rate who was Wells Fargo, but they didn't put the taxes, homeowners, and mortgage insurance on the Good Faith Estimate. Does the fact that the overall charges look cheaper then? How about misleading, because you will need to pay for them at the end.
How about the fact that their realtor gave them two of her own choices to speak to. But you know what, it's been 3 days so far and they haven't gotten them over their good faith estimates. And when I spoke to the consumer today, she just said, "maybe they are just busy, so I will give them some more time."
Summary : I am not here to brag, but I think I am busier than 70% of the loan officers out there. But I am still able to get back to her in less than 4 hours with a good faith estimate. Here is what she stated to me :
"The Wells Fargo good faith estimate is much less complete analysis and did not include escrows for taxes, hazard insurance and mortgage insurance. It also doesn't look at a possible seller's credit.
My husband and I want to show your estimate to our realtor and wll get back to you. Thank you for taking the time to be so thorough in our conversation yesterday."
Yet she still wants to wait for others to get back to her. I don't try to pressure, but you then have to look at the reality of the situation. Time is money. Rates move daily. I might end up being more expense 3 days later, because the rates might have improved. And you might make a split decision and it could cost you more in the end. Or, what happens if rates go higher?
What do you get with me? I won't be the cheapest, yet I won't be the most expensive. This consumer is out of state. Okay? I can do the same as the person in your town. The only thing is that I won't be at the settlement table. That is what cell phones are for.
What you will get from me is expertise. You will get good, clear, explanations. You will be able to reach me on my cell phone or e-mail 7 days a week. I will take the extra 30 minutes to clearly explain the whole process, from the mortgage application, to your title charges, to what will happen at closing. Many just want to give you a rate in the first 5 minutes. You will end up with the same rate and fees that I lock you into. And I usually give you answers to many of your questions before you usually ask them. Are you willing to give all of this up for an extra $9 a month in savings? Will it even work out to that much per month? What happens if they changed your rate last minute? Delayed your settlement for a week? It can add up quickly. Just remember this...You usually get what you pay for.
Read this and it might just save you thousands : Consumers need to be aware of these Red Flags !!!!
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For more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger
I love that picture! Nope, I buy gas wherever it's convenient. It's about the same price everywhere. The gas I burn trying to find cheaper gas...I'm gonna have to replace it anyway.
Good customer service is paramount & I believe it should be exceptional. Whenever you are PAYING for a service-any service, it should be nothing less than the best. That's what I give to my clients and it's what I expect.
Hey, Jeff- If I refer someone that doesn't get back to my client in a reasonable amount of time, or does shoddy work, they are off my referral list. Done. If that someone is on vacation, that should be noted on the voicemail, as well as an away message on email. Referrals that don't perform reflect poorly on me.
But, I do go to Costco to buy gas when I am near one that has a gas station- it is often 10 or 20 cents less a gallon!!
You get what you pay for.....
It is really that simple. This is why I do not discount commission.
ROSS..... and I have worked in restaurants at one point for about 6 years. Educating is so key, yet so over-looked, because the consumer's eyes are fixated on the lower price. It's not until during the process that they realize this more so... just nature of the beast at times. thanks for the compliments.
YVETTE..... I agree, good customer service should be exceptional. I will admit, I am not at my best all the time. But I am my worst critic. One main reason is because I am picking up the pieces from other lenders that have dropped the ball just recently. But I will get back to people in 24 hours, even if it's 1 am in an e-mail. And they will still close on time and their rates and fees won't change. I did close one refinance 2 months ago, that wasn't on time.... but there were other circumstances.... but explaining this to the consumer needs to be done delicately and correctly.
CHUCK...... I agree.... but I talk to someone every once in a while that just chucks it up to that person being very busy. I think that is a lame excuse many times. I would bet 75% of the time, it's the opposite. Just an easy excuse to use. And I think I am doing a great job.... not trying to pat myself, but my clients will speak for myself.... and that is coming soon. thanks
CAROL....... define reasonable. I only ask this because so many give a few days as a leeway. I think in the initial part of the process, this is a mistake. And on vacation? You won't hear that on my voice mail. I will still get back in 24 hours or less. That is what 11 pm is for and 8 am.... just one hour twice a day... it can be done. And I agree, yes, referrals that don't perform can be a bad reflection on us. thanks
ADAM.... you are 110% correct and I meant to put that in this blog, highlighted... but I forgot, because I was getting wordy. So, if you don't mind, I am going to put that in here. thanks
My personal take on service is that we should always treat others the same way we wish to be treated... Anyone ever heard of the golden rule? The bigger question is... How often do we exercise the GR?
Quality service with a strong value proposition will always merit you good things.
Help enough people get what they want and in return you will be blessed with plenty!
Good Article!
James
Jeff -- from the first time I talked to you on the phone, I was impressed with your attention to detail. Even though we have never closed a deal together, I provide your contact information to my clients because I know the value of that kind of service, and I want to ensure my clients get that type of treatment. I hope someday soon we can actually close a deal or two together -- that way, my assessment of your quality service will be based on first-hand experience, not just your informative blogs.
Jeff: Absolutely not. It all comes down to us feeling we're worth something and providing long-lasting value. It's nice to "beat" a competitor on price but, let's face it, the customer doesn't remember that as much as the great service before, during, and after the sale!
Paul
JAMES...... what's the Golden Rule? The "Golden Rule".... how Golden is it? ;o) Seriously, I totally agree with you. And I would have to assume that many of us even on AR believe in this. And I do understand that it won't be 100% of the people out there. But can't the consumer see through this now? At least listen in detail, to what they are being told.. educated on....and not just look at price.
Overall, I agree with every statement that you made. And thanks for the compliment.
TONY.... yes,it can actually cost you more down the road. Great example is the Pay Option Arms... they were very cheap up front, but in many cases, have cost that client more money in a very short time. The proof is in the pudding on that one.
RICH..... I truly appreciate those kind words... and I felt the same about you, especially since we had more in common, when it came to the military. If you have that good gut, you can generally get a good idea about someone, when speaking to them and reading what they write... generally.... ;o) And yes, I hope one day that I could help some of your clients. We'll talk soon, because I have a few ideas....
PAUL..... you said... "It all comes down to us feeling we're worth something and providing long-lasting value." How about pride... That's the word I have been mentioned often lately... so yes, I agree again with your statement. thanks
Jeff,
Not even a single minded fixition on FHA could take points away from this one.
Very well done!
Bill
So difficult to conceptualize -- well, not really -- that these arcane practices of bait-and-switch still work. Or let alone employed.
Makes you wonder if consumer protection is actually working in the American mainstream.
(Sometimes, we will cross into NJ to get gas. The gas tax is lower than in PA, and even with having to pay a toll to cross the bridge over the Delaware River, with prices 30 cents cheaper over the bridge, it can save $6.00 or more, if you have a big enough tank, and are filling up.)
On another value issue: There is an all-night diner near us, called Stargate Diner. They have great food (especially the Prime Rib) and great prices. I prefer their food to the steak houses near us (Outback, Charlie Brown's) but I prefer the atmosphere at the other places. Sometimes I am in the mood for atmosphere, and that wins out over value and quality. But most of the time, I choose the place with the best value, and the best product. Anytime you can provide quality and value, people will come back for more.
Somebody has probably already said it (I haven't read the comments, in a rush this morning) but it's true "you get what you pay for".
Price Versus Value:
You Get What You Pay For
In order to sell price and be the cheapest, companies usually have to cut somewhere else, which usually means people and service. In the long run, this means to me that they're just not worth it. In fact, they'll probably end up costing you money. Remember the old adage: If it sounds too good to be true, it probably is!
I have tried to get the message across to referral agents that the folks who answer their phone get the referral. There are still folks around who think that I'm going to leave a message and sit and wait and wait and wait. Can't do that. I've got a buyer that I can't keep waiting.
Agents who answer their phones get the best referrals.
KENT..... I agree with your statement. Except that it's extremely hard to get both at once, especially when it comes to mortgages. Since everyone knows that there are so many to chose from and that hardly one price is the same as the other, this creates a supply problem. There is plenty of supply, but at what cost.
BILL..... thank you very much for that polite compliment. Much appreciative...
JASON C. ....... I am sure many of us have learned this lesson one way or another... just part of life. Many try to cut corners.... but I know, when it comes to electronics and such, I just go out and spend the money, but looking for a sale on what I want... if it's not there, then I pay that price.... thanks for sharing this and for the compliment.
THESA.... I read your comment last night and you made me laugh.... lol In any case, thanks for the compliment.
ANDREW...... I think the bait and switch tactics will always be there. Hopefully not in the same numbers as in the past. And this post wasn't all about the bait and switch, but someone giving a slightly better price, that I could still give the consumer, but it might be a bumpy road, because that loan officer didn't prep the client very well... or educated them on the whole process... or the communication is lacking... or response time from the loan officer is not up to par, lacking a few days behind. These are usually red flags and should be cause for concern, that it could lead to a problem later on.... But as you mentioned, it makes you wonder.
RICH..... you hit the nail on the head, quality and value. Many offer one or the other. Some consumers think that it should come with the price, which is very misleading. It's a dog eat dog world out there. The consumer that listens, compares, but reviews everything, not just price, are the ones that truly understand this. thanks
NAOMA...... you are right, they are looking to hear what they want to hear. And it sometimes comes down to other parties involved, such as this realtor that I don't know. Giving referrals is one thing, but they haven't gotten back to her, still... 4 days later. How can the consumer place any value on that. Yes, people are busy, but never that busy.
CYNTHIA..... yes, it's been said, but it never hurts to repeat it. Sometimes the simplest of messages need to be said over and over. It will sink in to some.... not all, but it's a start.
LEWIS...... this is not always the case. In my case, as a loan officer, I can offer much lower, just to be the lowest. But in my eyes, I just can't give the best service. It might sound rude or egotistical, but I am doing more than what the average loan officer does. I try and get everything up front. I try to prep them on most issues involved in buying or refinancing. So, I could still go cheap, but I believe that there could be a reasonable price for this kind of service, that also comes with knowledge and prompt communication. If I was a conveyor belt and everything was the same, each client, each loan, then this is different and I could be cheaper or the cheapest. But I don't operate that way, hence why so many get poor service. They get placed on that conveyor belt or the back burner once they get that consumer in the front door. And then, it could be a waiting game.
LENN..... I totally agree....and if we would wait for people to get back to us, we would lose money and clients. And I agree about answering your phones, that agents get the best referrals. Just as when I get a client that e-mails me on a Friday night or calls me over the weekend... they are expecting my voice mail or a returned e-mail on Monday... but that is usually not the case with me, which then they are shocked and surprised... it usually becomes a great relationship then.
LMAO @ Archambault!! Handled with grace my dear friend :)
Ok, don't smack me... I'm going to work on your header right now...
Jeff,
You do get what you pay for, but often the consumer can't see it from that perspective...until much time has transpired and it is too late...consumers must do their 'due diligence' investigation BEFORE they get rate quotes...I wouldn't buy fine jewelry from someone I didn't trust...no matter what the price!!! Thanks, Fran
JENNIFER B. ....... yes, hehandeled that with grace.... and thanks for the header. ;o)
JASON S. ..... what did you Jen do, talk to each other and show up at the same time?
But I agree, I do think more and more consumers are getting. Especially if they have experienced it once before or had a friend experience it and knows about it. thanks for the compliment.
JIMMY...... I think many of us would actually pay for service. I know my dad goes for the cheaper product at times, which I think can hurt you at times. In regards to Michigan, yes I do and I sent you an e-mail. We'll talk soon. thanks and thanks for the kind words.
SONYA...... getting gas whenever it's convenient... I am like that also. I do have my certain places and do plan around them at times. and that's great that you make it your job to give exceptional business. thanks.
SONJA...... I loved that line..."I am not rich enough to buy cheap things"... well said.... it makes a lot of sense and some people could learn from that. When I was 22 years old, I bought a $165 Sony cordless phone and at the age of 41, I still have it and it still works. That was way too expensive back then.... but I bought true quality.
JASON S. ..... thanks... thank you girlfriend for that.... or is that your wife? ;o)
VALERIE...... exactly... I think many of us can agree on that. It's simple and easy to understand. And yes, it becomes that individuals choice. And yes, we all make a bad decision or two in our lives. But the bad decision is not learning from our previous choices.
RICHARD....... yes, I love the pic.... and thanks for the compliments.
JENNIFER B. ...... lol thanks.... ;o)
JOSEPH...... thank you very much for that kind compliment. And I agree, it use to bother the hell out of me, but I now use it to work for me and not against me... for the most part. And I waste less energy on it now.
ALAN..... it's not even expecting it now, which I am the same way. It's a client that is waiting around for an answer, giving that other person to much time. And my whole point with that is if it is like that now, in the beginning, what do you think it will be like near the end, when you want answers? Or if it's being delayed?
VIRGINIA....... I agree... I think the loan officer is the guts to a transaction... I wrote about this once before. In any case, we are working on something national and if you don't have a problem with me not being in your state, I would be glad to help any of your clients out. thanks
FRAN...... you are exactly right, which has been talked about before. It's hard to see these things from the other side. Hence why you need to do your homework, read up, but also use your gut and common sense. Thanks for your feedback and the jewelry example.
LISA F. ...... thanks for the polite compliment. But receiving a good faith estimate a whole week before settlement????? gee, even 48 hrs after I have spoken to you in my opinion is way to long. Hence why we need to educate consumers to say... "okay, you have just quoted me a rate... please send me my GFE, here is my e-mail"..... they can't wait for the loan officer to offer it. They need to ask. I always offer before someone asks, but I am finding out that this is not the norm. thanks.
Jeff, I am like you not the cheapest, but I am there to answer the questions that are asked, items needed and so on
Dave Woodson
Nice picture...;)
I stick primarily with one mortgage broker because he gives me prompt, competent service and he tells it straight. I tell my clients that he will give them a fair deal but may not be the cheapest, but once they are in his web and see how he works, they usually go his route. Customer service, product knowledge, speed, communication, etc., all drive your stock way up with the customer and justify the cost.
I would think one would never want to compromise service and results. I certainlly would want a discount brain surgeon.
LARRY...... I agree, for certain things. And you hit the nail on the head, needing a combo on larger investments. You make some excellent points in comment, as in, price will never rule. Thanks for sharing your input.
DAVE..... and I think we need to make more people aware of this. Because it's human nature to search for the cheapest. In my post, I talk about a consumer shopping me. I had to cut her off at the pass and ask her what was really important to her.... making her realize that she should be looking for more than just price. She is meeting with her realtor again tomorrow, I guess time will tell.
JOHN...... I agree 110%... hence why I value referrals as a big part of my business. As I understand that I won't win them all, but if I can shoot for 75% happiness and a pleasant experience, it will come back to me. Some good insight in your comment.... thanks
JOE....... and why branch off from that one person then? I know many realtors give out 3 or so just to protect themselves. But in all honesty, can you find 3 that are the same, that you would trust all 3 the same? If you can answer that you prefer one over the other... then why put yourself out there. I like that you have just one. Would I like to be your number 2? Yes.... because if one ever failed or couldn't do something, I would love to be there. But I wouldn't expect you to break it up some, giving some there and then some over here. Stick with your number one gun... that is my .02. thanks
PS>... I use to live in Louisville, KY. I actually graduated from Trinity HS.......
PAM...... You would think one would never want to compromise both service and the results... but there are many risk takers out there....
BOB & CAROLIN....... this is true. But put yourself in the shoes of the consumer when it comes to mortgages. What steps would you take to assure that you get a good deal? Just curious.... thanks
LISA..... cool..... I actually liked that and can't believe that it wasn't thought of previously. Maybe I should charge you a monthly usage fee? lol Thanks for the compliment on that one.... much appreciative..
It never made any sense to me why people go out of their way to get the cheap gas. Especially when you waste more money using the gas to get there....but hey....whatever floats your boat.
I truly believe you get what you pay for. I've made that mistake and only had myself to blame.
Jeff
I look for the best rate out there as a broker but I look for that great rate with a lender who will fund the loan. While doing the right thing by my customer (sending to that lender who will still be there to fund) I have eaten crow because the lender is too big and one department doesn't communicate with the other. Many closing packages redrawn. In this market, you want the best rate but you also want the loan to fund. Yes you want good price and service but...You send the loan to the top banks and know they will fund. It may not be smooth because the company is too big. It's a tough time right now and underwriters are covering their ass. Conditions are cleared and then re-appear. You work through it. Get the loan closed with a lender who will be there to fund! I've been putting in many more hours and learning how the big banks operate right now and it sucks! But it's the best way to learn and the loans are still closing.