The Professor’s 5 Levels of Protection to Mortgage Shoppers
1. Receive His Help in Selecting the Type of Mortgage That Best Meets Your Needs
You want decision support in selecting the loan program that will cost you the least over the period you expect to have the loan. This removes the risk that an inexperienced or careless loan officer will place you in the wrong loan.
If you are refinancing, you want this decision support to include your existing mortgage. This assures you that the new mortgage will cost you less in total than the old one.
2. Shop Prices Posted Directly by His Certified Lenders
You want direct access to the prices posted by the lenders you are shopping. Posted prices are those at which the lender is prepared to lend. You do not want price quotes subject to the discretion of a loan officer (LO), which can be quite different.
When first contacted, LOs may low-ball the price in order to convince you that his prices are the best and you should select him and reject the others. When it comes time to lock the price, which is the point at which the price quote becomes a commitment by the lender, low-balling morphs into” high-balling,” where your loan is priced above the posted price . At that point, you are heavily committed and backing out would be costly.
3. Shop Prices Fully-Adjusted to Your Deal
You want the prices you shop to be adjusted for all the features of your transaction that affects the price. If there are 10 factors that affect your price and the site asks about only 6, it means that the site is assuming values for the other 4 that are most favorable to you. This means that the price quoted to you may be understated.
4. Shop Prices That Are Always Current
You want the prices you shop to be live, not obsolete. Since lenders reset their prices every day, and sometimes during the day, a system providing timely prices must be directly linked to the system that generates prices. The professor’s system works this way, in the sense that any price change that a lender makes automatically and simultaneously occurs on his site. Sites that require participating lenders to update prices on the site as a separate operation invariably fall behind, especially during periods of rapid market change.
5. Get Him as Your Ombudsman Just In Case
Mortgages are complicated, as is the mortgage process, things sometimes go wrong even with the best systems, When that happens, it is helpful to know that there is an informed and objective third party with the clout needed to find a solution. The professor or his agent is that party.