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When Loan Officers Compare Apples to Oranges to Win Business; Rotten Fruit :)

apples-to-orangesOne of our agent-partners called me this week b/c another lender was trying desperately to lure away one of our borrowers in contract.

Our longtime agent-partner was spoiled by our service levels and was very concerned about a switch to a lender she did not know b/c she has been burned many times.

Most interesting though was the fact that the other loan officer was quoting a rate that was significantly lower than the rate we quoted.

When our agent-partner questioned the rate, the loan officer assured her the rate was for real and that nobody had anything to worry about b/c the loan officer had been “in the business for 30 years.”


BUT – here’s the thing: The other loan officer was quoting a rate for a 25% down loan for a single family residence. The actual financing involved 20% down and a condo purchase.

The smaller down payment and the property type (condo) increase the rate at least 1/4 to 3/8 percent.

We were amused by the fact that a 30 year industry vet failed to clarify the down payment and the property type before quoting a rate, when we train our “30 day industry vets” to do so :).


In any case, this is another reminder that MANY things significantly affect interest rates, including Loan Amount, Property Type, Lock Period, Credit Score, Down Payment %, and even Debt Ratios and Reserves.

Our rates are much lower now, and we will usually win the rate battles as long as everyone is comparing apples to apples.

Jay Voorhees
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646