A few weeks ago, I posted a survey with three questions to learn consumers opinion about the Fed's rule on loan originator compensation and how they select their loan originator. Here are the results.
Please rate the following based on how you will select your next mortgage professional:
- Years of experience as a mortgage originator (72.7%)
- Referral from someone you trust (63.6%)
- I will return to the LO who helped me with my last mortgage (62.8%)
- Whoever quotes the lowest rate (45.5%)
- Type of institution (bank, correspondent lender, broker or credit union). (38.6%)
When I'm helping someone with a mortgage for a home located in Washington state, I find that a majority of my new clients are readers of my blog. I'm also fortunate that many of my clients are referred to me from real estate agents and financial planners. Home owners I have helped in the past also tend to refer their friends and family and return to me for their next. I do not advertise (with the exception of my tiny ad on West Seattle Blog), I do not take "up calls" and I do not buy leads…never will.
Thank you for reading my blog and for remembering me when you or someone you know needs a mortgage for a home in Washington. I feel so fortunate to have my business model where consumers seek my professional advice and assistance with their home loans.
Interesting results. Ever since I have been marketing my 8 years of experience, I’ve noticed an increase in online applications.
Joshua, a majority of my clients are “on line” …I meet very few of them… of course I’m happy to (meeting with a couple this morning).
Interesting results – I would have guessed that most people would have picked lowest rates followed by someone recommended by someone they know.
Although folks should shop around, I’ll be most don’t. What do you think?
Unless you’re ready to lock, and you’re assuming all mortgage originators are equally competent/skilled/educated and they can all navigate your transaction to a successful closing – then selecting your LO by rates alone can be a costly mistake. The “lowest rate” is not the lowest rate if your deal doesn’t close.
I’m hoping consumers are becoming more savvy to this…plus, rates change constantly and banks/lenders price those rates differently with each change – it’s a moving target — like trying to buy the cheapest stock on the DOW…changes constantly.