Mortgage Tips, Tricks & Secrets

What is the “Lending Tree” mentality?

Well I’m sure you’ve heard the slogan - “when banks compete you win” right?

It’s completely true - only if YOU know what you’re doing.

P.S. I’ll explain the puppy in a minute >>>

It’s Time To Wakeup Home Loan Shoppers!

Believe me when I say, if you fill out an online form to begin your mortgage shopping - you are in for a rude awakening if you don’t first have a plan of action.

Most would be home refinancing and home mortgage shoppers simply fill out an online request for a mortgage quote and hope for the best.

When you do ONLY that, here’s what the BEST will be;

Your phone will ring 10-15+ times per day - with hungry mortgage brokers (and I DO mean hungry) all asking the same questions.

You’ll fall into the “what’s your lowest rate” trap and guess what - these mortgage brokers deal with Stupid Home Owners like you every day (stick with me here I’ll define “stupid” in a minute).

Ask for the lowest refinance interest rate and you’ll get it. Who cares if it’s one of those pay option ARM loans that unbeknownst to you actually ADDS to your mortgage total every month (hey, it’s good for some - but you better know who you are).

Sure, 1% was the lowest rate - and you might even be dumb enough to take it (can you say foreclosure?)

Or, maybe since you were so interest rate focused you took a 2 year ARM at a really nice low rate and didn’t realize that you had a pre payment penalty which lasts the entire two years (forcing you to refinance AFTER the rate begins adjusting, assuming you have enough equity in your home left).

Hey, interest rate IS a factor, but when it’s your focus you lose sight of the fundamentals.

You Choose - Save The Puppy OR Get Hit By The Bus!

It’s like pulling your cute little puppy from the middle of the street, failing to see the speeding bus barreling down on you. Sure that little puppy (i.e. low interest rate) is cute but is it worth getting run over by the bus?

Maybe it might make sense to stand at the side of the road and call the puppy to you OR flag the bus down. However running out in the middle of the road for the puppy is just plain stupid.

Asking every mortgage broker that calls you for his lowest rate - is just plain stupid.

Evict your inner Stupid Home Owner and get a plan, in fact get a really good Refinance Plan in place before you do anything. Learn to control the mortgage shopping process by asking the right questions. Here puppy puppy, here puppy puppy. Good boy!

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