If you’ve ever been in the market for a refinance or new home purchase loan and started the “shopping around” process by asking for a Mortgage Rate Quote

– then you’ll sympathize with this statement;

“The Mortgage Rate Quote Process SUCKS!!”

However, in my standard attitude that everyone has come to love here at Stupid Home Owner – let me say this;

“It’s your freaking fault!!”

It’s kind of like walking into the used car dealer, and realizing that as soon as you get out of your car there’s a salesman reaching out a helping hand to assist you in disembarking the vehicle.

The point is, he saw you coming from 3 lights down the street. He’s hungry and NEEDS to sell you a car today so he can pay the rent.

MOST OF THE TIME, that’s the same idea YOU create in the mortgage brokers mind when you call and all you say is;

“Give me the best mortgage rate quote you have”

As a mortgage broker, my job is simple if all you do is ask me for my lowest mortgage rate quote. Hell, the interest rate sheet for xyz bank is right in front of me – I’ll just tell you the lowest rate they publish and we’re in business, right!

I mean, it’s YOU the customer that drives the sale right (i.e. my paycheck) so if I don’t have to;

- ask for your financial background/details
- check your credit
- record your assets
- check your home owners insurance
- estimate the value of your home
- compare loan options
- fill out the entire mortgage loan application (form 1003)
- work up a good faith estimate
- get your actual loan approval

…I mean – you wanted a mortgage rate quote right?

We’ll I gave you the lowest rate available. That’s what you asked for.

And, as a sad fact (listen to this) most people shopping for a mortgage rate quote simply ask for it, and shop it to death with 5 other banks/brokers/lenders.

Guess what happens then?

You now have a very low rate quote (hey, you didn’t ask how many points that low rate was gonna cost ya!). And everyone else you call says “that rate is too low, it MUST be a lie.”

And guess what, they are somewhat right. It’s TOO LOW because they know it’s gonna cost you THOU$AND$ to get – but you didn’t care – you wanted the mortgage rate quote didn’t you.

Sure, you MAY have asked what the closing costs were, but since the broker saw you coming a mile away (only focused on a low rate) then hell, he can simply quote a simple low closing cost fee (which may not include absolutely everything). There’s a big difference between this fee, that fee, my term for the fee, your term for the fee, the banks fee, the tax fee, the title fee, the stamps fee, the lock fee, the appraisal fee, the FREAKING FEE FOR THE FEE!. You with me here!

I hope you don’t think I’m kidding here. This happens to about 90% of the people I talked to, and my colleagues too. It’s very real no matter how crazy it sounds here.

Can’t We All Just Be Normal?

Now, a normal person would begin listening to the banks/brokers/lenders telling them it’s not a valid rate – however YOU fell in love with that rate. YOU asked for it, YOU got it and NOW it’s yours right?

NO! It’s a lie and it’s YOUR fault simply because you don’t understand the process.

The “process” I speak of is learning to ask for what you DO want, in a way that takes the mortgage broker out of the used car salesman’s shoes – and ultimately gives you what you want – an ACCURATE mortgage rate quote.

To learn the process of asking for (properly) and getting what you want you should visit my “Refinance Tips To Success” article – which can also apply to a new home purchase loan as well.

It’s all about asking the right questions and ALSO knowing what happens if you don’t. Read this article again if you DON’T get what can happen when you act like a Stupid Home Owner and fall in love with a rate quote that is incorrect.

Ask “properly” and ye shall receive.

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