When Loan Officers Compare Apples to Oranges to Win Business; Rotten Fruit :)
One 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.”
LOAN OFFICER QUOTED RATE FOR WRONG TYPE OF LOAN
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 :).
MANY THINGS AFFECT INTEREST RATES
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.
Founder/Broker | JVM Lending
(925) 855-4491 | DRE# 01524255, NMLS# 335646