No. of Recommendations: 1
You forgot to mention that the consumer is always right--a huge meme on this board. ;-)

Your comment is in jest from the smiley face at the end. But no, the customer is not always right. I will decline to work with a client I believe is a commodity shopper. Yes, I understand and agree that price is an important component in determining value, but price alone never reflects value. Too many people know the price of everything, but the value of nothing. For the consumer who clearly wants to know rate and nothing else, I give them the 800 number.

There are some consumers who want rate info only, don't care about corresponding bank fees. When I try to educate them that rate is only part of the equation and amount of total bank fees also plays a role in the cost of a mortgage; then they still only want to know "what is your rate", you're certain to have a commodity shopper and you bail. These are the borrowers who have no interest in learning about the process or taking the time to understand and listen to what to expect during the process. Often, they're the "I'm a slam dunk, I should have the best rate". They really don't want to hear that even the most vanilla loan is not a slam dunk. Why work with them?

Sometimes after twice trying to explain the relationship between rates and bank fees, I'll have just a bit of fun. If market rate is currently 4.375, I'll say our 30YR is at 3.875. After they get all excited then I'll let them know what the bank fees are, which I state as a dollar amount that I've quickly calculated out as 2 points on their loan amount. They still don't get it, and want to know if they can lock in their rate right then, and is there a cost to lock the rate. That's when they get the 800 number. Those are walk ins or call ins, never really a direct referral. The customer may think they're always right, and I'll politely never disagree with their belief, but I certainly wouldn't do business with them.
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