Using the HECM Shopper's Assistant to Shop the Market: Some Tips

Using the HECM Shopper’s Assistant to Shop the Market: Some Tips
Using the HECM Shopper’s Assistant to Shop the Market: Some Tips

You have already shopped the market in that the mortgage you have selected is the best deal available from the multiple loan providers that deliver their pricing to this site. This is the only site that allows price comparisons of multiple lenders. Off this site, you will have to approach each lender individually.

In approaching individual lenders, you show them your HECM Shopper's Assistant, and ask if they can provide a lower rate with the same maximum rate increase, or a lower origination cost with the same rate. But you must be wary of “low-ballers”, who quote low prices they have no intention of delivering. Low-ballers bet that the borrower who has invested time and effort in the transaction, only to find that the price has increased, will be satisfied with the lender’s explanation of why that happened.

While there is no simple way to identify low-ballers in advance, they will reveal themselves over time. The lender who quotes a low-ball figure over the phone might or might not low-ball the exhibits of HECM examples he sends you, which you will receive prior to filling out an application. If you elect to proceed and fill out an application, you will receive a Loan Estimate disclosure within 3 business days, and the figures in that document are much less likely to be low-balled. If the figures in the Loan Estimate are valid and higher than those in your HECM Shopper's Assistant, the lender will probably claim that the market changed since you priced the loan on this site. You can check that claim by returning to this site and bringing your transaction up to date.

Loan providers on this site do not low-ball because they are monitored by the professor whose rules are well known: “one strike and they are out.” Furthermore, if any issues arise with a lender you select from this site, the professor will serve as your ombudsman. Off this site, you are on your own.