Mortgage Myth Busters

How well do you shop before you Eat - Shopping for services vs online rating systems - Part 3 of 3

 

Shopping for mortgages - shopping for houses

There are statistics that say 80% or more looking for a home first shop online. This doesn't say that these same people actually buy a home online, but they start their research. And I am finding that many more are shopping for mortgages online once they have a problem with their current lender or have been denied. So I can safely assume that the internet is being used a lot when shopping for a home or when shopping for a mortgage.

My question and thought process is, how far does one take their shopping. Do they stop at the first person? After talking to three and then deciding?

I read an article in the Philadelphia Inquirer's business section written by Alan J. Heavens from December 19th, 2010.

 

 

There has been a lot of talk about Reputation Architecture... well, it's starting to brew, if you haven't been paying attention. I mentioned Jonathan Washburn's article in Part 1 & 2. Read it if you haven't yet, don't get left in the dust.

What I wanted to talk about today, was what was mentioned in the article above. It has to do with shopping for mortgages, which can also be said the same when shopping for a realtor. Here are a few excerpts from the article.

 

shopping for mortgages

 

Wow, just 40 percent stop with the first quote? So the first loan officer that sounds good, has a good rate, and that's it? Getting there, be patient....

 

 

shopping for mortgages

 

Okay, so how can one feel confident after just one quote? Are some of these loan officers and or realtors just talking a good talk.  Telling the buyer or seller what they want to hear and not what they should be hearing. Inquiring minds would like to know. At least this fly on the wall.

 

 

shopping for mortgages

 

Ah, the consumer wants someone that says that they will get the job done, which holds more weight now on price or rate. hhhhmmm...  Does this sound like gasoline being dumped on a steady fire? I would say so..

 

 

Elizabeth Cooper-Golden wrote :

How are WE going to fix THIS?

 

In Elizabeth's post, she talked about 1 specific person that had dealt with 6 realtors in her moving career, yet had 5 bad experiences. Think about this...

 

 

Summary :  Let me first say that I don't always like being shopped, for various reasons. When it comes to shopping for a mortgage, there is more than just shopping for an interest rate. But the same can be said when shopping for a realtor to help you sell or buy a home. Yes, there will be people with bad experiences, it's a given. But what about those with bad experiences when working with a very good realtor or loan officer, as I mentioned in Part 2. What about those that place shopping over someone that they think will do good for them. The title of my post, How well do you shop before you Eat.  This could be said for any kind of shopping. But if online rating services start to make it to the top, when it comes to shopping, will the personal element be taken out of the equation? Could it be the luck of the draw for some? Others that aren't deserving, still with good ratings?  Can this type of system be manipulated?  Will online rating systems replace expertise and knowledge? Just food for thought... will it be like putting 50k down on red? Wait, black? Will it be a toss up now?

People.. we need to start thinking and preparing for this now. It will happen... especially since others will be able to make a profit off such a system. What do you say? Thoughts?

 

ps.. Active Rain's theme for 2011 for the RainCamps is Reputation Architecture - are you going?

 

Don't be that Dust in the Wind - Don't get left out

 

 

 

 

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Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comment balloon 18 commentsJeff Belonger • March 07 2011 10:44AM
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