Buyers Beware: Homebuyer Survey Says – “Market conditions” making lender’s service worse….really?

A Buyer’s Satisfaction Survey by J.D. Power & Associates shows that loan originator satisfaction is down.  Much of the frustration comes from longer turn times, which is a completely other subject, tightening underwriting guidelines and unmet expectations.

You see, this doesn’t surprise me at all.  I still see it every day, and I’ll be honest with you….I’m beginning to think that a lot of the messes we clean up are YOUR FAULT! (oh, don’t get mad…keep reading)

See, I’ve got a different take on this whole “dissatisfaction” thing.  Sure things are getting tougher out there, I get that, but what I still see on a daily basis is that agents, lenders, loan originators and loan brokers are not taking the time to explain the home buying and loan approval process to buyers!

I’m going to put my psycho-analytic hat on here for a second, I believe that frustration, anger and feelings of dissatisfaction are the result of things going different from what you were expecting…unmet expectations is what we’re really talking about.

So, how were those expectations created?  Who is responsible for setting those expectations?  I think it comes down to the so called “professionals” you hired to help you buy your home.

Yes, things are tough, I know that, I tell you that on this site over and over again….I’m trying to set your expectations so that you have less stress and are better prepared for the road ahead.

Ok, follow me on this….I feel another one of my rants coming on…..( actually, I think I’m about half way through it at this point!)

Why are home buyers still so timid when it comes to holding lenders and real estate agents accountable?  I just don’t get it.

Every time we get a call on our Loan Rescue Line, it basically boils down to the same story every single time.

The lender does not explain everything to you clearly or they are elusive with their explanations, the Agent is hard to reach – neither will return your call fast enough – Why do you put up with it?

I’ve gone to the Wizard and he’s graciously agreed to endow all readers of this article with abundant courage.  Cool huh?  That was easy.

Now that you have the courage to fire a crappy lender or agent, let’s make sure we’re not making any rash decisions to can someone that might not deserve it.  Here’s a test.

How to know when to Fire Your Lender or Real Estate Agent

1. The first time you met with your Agent, was the ENTIRE home buying process explained to you before you started looking for homes?

This is a big one for me.   The assumption is that they will tell you what you need to know when you need to know it.

Any Agent that doesn’t take the time to educate you in detail, about the buying process, is only looking for a commission – They are not looking out for you or your family.

This really ticks me off because it’s probably the single most common source of anxiety and frustration is unmet expectations…If you are unaware of what expectations to have, that’s worse than knowing it’s going to be challenging – It’s the uneasy fear of the worst possible scenario that makes you lose sleep at night – the unknown – not the truth.

Once you know the truth you have the ability to consider all of your options and make an educated decision as to what the next step is.

A common tactic is to get your emotions in an uproar by driving you around, looking at possible homes, without being approved for financing or understanding the process.

These agents count on you feeling obligated to work with them because they have given you something of value (their time, showing you homes

2.  Do you feel like you’re only being told what you want to hear?

Is there ever any discouraging news like, “It’s a very competitive market out there – expect to make a lot of offers”.

I’m telling you, it’s hard to buy a home in today’s market!  Many buyers will make many offers and it takes weeks upon weeks and months sometimes to get an offer accepted.

This will “most likely” be your experience as well – and again, anything short of this….CONGRATULATIONS!  At least you were prepared for the long haul.

Be Battle Tested – Prepare Yourself for a Fight!  I prefer to prepare you for the worst.  If you get your first couple of offers accepted, congratulations!  If not, you knew it was going to be a fight and you were conditioned for it.

Anyone that’s sells you a sappy “American dream” speech and tells you there will be butterflies and bunnies on the road to home ownership hasn’t sold a home recently!

3.  Did your loan officer or lender explain the all of your options?

What I see most often is that buyers are given ONE option for financing a new home purchase.  Or, if there is more than one options offered, because we specialize in special community lending programs that save buyers money, many times the “quote” given is to either discourage buyers from using a lower cost loan with a high cost loan offered as the solution.

It seems that far too often lenders are not EDUCATING homebuyers about the loan, the loan costs, and the approval process.

Was the good faith estimate explained to you to the point where you know exactly what everything costs, who pays it and when it’s due?

Buying a home is not inexpensive.  Yes, there are some ways to get the seller to pay for some of the costs.  Yes, there are special programs that have reduced fees or costs.  Yes, there are special programs that have fixed interest rates that are published publicly for all to see – no surprises.

The majority of loan programs are not this cut and dry.

It is your responsibility to educate yourself and understand ALL of the costs involved, including taxes, insurance, interim interest, recording fees, title insurance fees, escrow fees, origination fees, discount points…..holy cow folks…the list goes on!

So there you have it. A simple, three point test to get you thinking.  If you’ve ever taken a few minutes and read the comments on this site from other homebuyers you will notice that many, many buyers find our site after they have had a run in with a misleading or misinformed agent, lender or loan offer.

There is no coincidence that most of these folks end up doing business with our company because of our philosophy of giving you all of the information you need to make an educated decision about what is best for you and your family.

I never really thought that was a unique way to try to earn someone’s trust and ultimately your business but……go figure.

Here’s what I would like to offer you.

A 100% Guaranteed “No Pressure” honest to goodness advice offer.  What you can expect?  I expect that you will speak with one of our loan officers and you will have a different experience than you have had with your other lender.

That’s it basically.  We’re not going to put the screws on you and make you feel like you have to do business with us.  We’re not going to tell you that your lender is no good and make you feel dumb for choosing them.

Once you have this perspective, this “second opinion” if you will, I suggest that the decision you make – will be the right one.  Whether you choose to do business with us or not, it doesn’t matter.

What matters is that you have perspective, you have contrast, you have options.  When you have options, you can be better prepared to make decisions.  When you make informed decisions, you are empowered.

How do you get a second (or first) opinion?  Simple – If you are in escrow or actively looking for homes and making offers – You might want to click the 911 Emergency Loan Rescue button here on the left side of the page.

If you don’t feel it’s an emergency, either submit a “Complete Application” or “Quick Apply” with the two buttons above the Loan Rescue button.  And if you’re like me, and you like a good old fashioned, real live person to talk to – Call the office at the number on the top left of the page.

Thanks for hanging in there through my rant.  I think I am getting impatient with this market as more and more homebuyers contact me with horror stories about being misled or misinformed.

The very fact that you’re reading this is a great step toward creating awareness and will give you a great advantage over those that see you only as the shortest path to their own personal and financial benefit.

Thanks for reading.

Related posts:

1. Buyers BEWARE: How do you know when to NOT trust your Agent or Lender?
2. Buyers BEWARE: Prices on the Rise, Sellers run the Show, Agents desperate for Commissions….but its not all bad!
3. Buyers Beware: I Suggest You Give Up Your Rights

Tagged as: bait and switch, closing costs, competitive market, good fiath estimate, hiring a lender, hiring an agent, loan approval, misinformation, Mortgage, real estate, red flags