If I Wouldn’t Buy It, I Won’t Recommend It To YOU
As a full-service mortgage broker, I deal with a broader range of consumers than other loan officers. It is because I am able to offer such a wide variety of programs from multiple lenders versus loan officers that work for just one lender and offer only that lender’s programs.
I also offer my clients as much information and/or assistance I can when helping them choose a specific type of mortgage since I believe this will significantly impact their overall financial picture. I do not attempt to act as a financial advisor. I do try to make sure that whatever type loan they are interested in will support whatever financial goals they tell me they have.
An informed, educated borrower is empowered to make better financial decisions for themselves and their family. Therefore, I work hard to make sure my clients are well-informed of the loan choices and/or options.
I’ve had two recent experiences that have led me to write this article. Both times my clients came to me with very specific ideas about what type of mortgage they wanted. After reviewing their credit and financial picture, I had to recommend against the loan programs they believed they wanted.
Why would I do this………………..especially since both times resulted in my losing the opportunity to make money on the loan?
The answer is simple. It was a bad financial decision for my client. In each case the loan was obtainable for them, the downside in both instances would have resulted in such a financial strain that my clients would have been risking their overall fiscal health.
While it’s not my job to manage my client’s finances, I do believe that I have a responsibility to point out potential pitfalls. If they are considering mortgage options that would leave them extremely vulnerable financially should they have an unexpected loss of income or health, I feel honor-bound to tell them the risks and recommend another course of action.
There are also a lot a loan programs that look good from some particular aspect but overall, if you read the fine print, are very risky to the borrower. I don’t recommend these products to my clients. When they come in to meet with me and ask for them, I recommend against them.
I base my recommendations to my clients on my heartfelt belief that if I wouldn’t buy it, I shouldn’t sell it to you.
Remember, when shopping for anything, the person representing the product is usually very knowledgeable, not only of their product, but of the competition’s products as well. If you’re dealing with an honest professional and you ask the question “would you do this” and their answer is “no”, you probably don’t want to do it either.