My First Mortgage Company is My Only Mortgage Company
Taking a mortgage is a big decision and it always one that is taken after a lot of consideration. Mortgage companies who understand this strive to retain the loyalty of their customers. Those who do things right find that the first mortgage company a customer borrows from remains their only mortgage company. Loyalty can be a beautiful thing, and mutually beneficial.
Loyalty won, customer retained
A customer will be loyal to their first mortgage company if the company offered extra services that contributed to their long-term financial wellness. For most mortgage companies, the focus is on closing a deal as long as a client is found to be credit worthy. Some customers have learned things from their mortgage company that they might not otherwise have learned that have put them on track financially. They never forget this.
When looking for a lender, many focus on getting a mortgage that has the lowest interest rate. The fact is that this is not necessarily the best option. Another loan might have a slightly higher interest rate but it may have other terms and conditions that make it the best option. Going for the wrong loan can cost you thousands of dollars over the duration of the loan that could have been saved.
When that first mortgage company helps one to avoid such a mistake, it's never forgotten. Having an education program that puts clients first and helps them to make the best choice for themselves is one way that a company can win the loyalty of their customers for life.
Elements of mortgage education program
One helpful element that a mortgage company can include in their customer education program is total cost analysis. This is where customers learn that their mortgage is actually a means to building financial stability and to attaining financial freedom. Most borrowers don't usually look at a mortgage like this.
Another common mistake that borrowers make is listening only to advice from friends and family. They have the best intentions but they usually give advice that may the best for your specific situation but not yours. A mortgage educator on the other hand, has all the information including the options, they know the trends and they can give advice that is specific to the financial situation you are in, the goals you have and the time lines you have for achieving them.
Avoiding surprises and lock-in favorably
A client-focused mortgage company will also educate them on how to avoid surprise fees. Sometimes clients are hit by fees that they were never told about, they are too high or both. They only learn about the fees at closing. Your lender should be up-front with all of its fees and costs.
Something else clients will be protected on is an unfair lock-in rate. Some time will usually pass between the time a borrower applies for a loan and the time that they actually get in. Interest rates may rise or fall within this period and depending o the market. The fee charged for locking in at a specific rate may also rise or fall. Should the interest rate fall, your interest rate and lock in rate originally quoted should also come down. Borrowers are informed of this and to be sure to verify it before they sign.
Another thing that borrowers are cautioned against is a float rate that is unfair. Some borrowers choose to let their interest rate float rather than opting to lock in. What then happens is that the lender can raise your interest very steeply and if they lower it, they do not lower it to the level reflected by the market. This usually works because it is usually discovered just before closing at which time it is usually too late to secure another loan.
A first mortgage company will also win the loyalty of a client forever if they show them the light when it comes to transparency. A transparent lender is one who will show a client the big picture in terms of the wholesale cost of a loan including interest rate and points and the markup. This information should be given upfront and it should be given in writing.
There is competition to lend to the borrower who has been found credit-worthy but a lender who has the interests of their clients at heart will encourage them to do comparison shopping. A lender who does this will have very competitive rates that they know can compete with those of other lenders and is transparent.
Lessons for life
When a client is walked through the options by their first mortgage company and they finish the journey with a home to call their own, no other debts, an improved credit score and good spending and saving habits, it is never forgotten. Should the client ever want to take the journey again and buy a second home or re-mortgage their home, you can be sure they will go back to the same company.
Get to know your first mortgage company right here. At AmeriFirst Home Mortgage, we're focused on educating home buyers far and wide. Start with "The Only Mortgage Loan Options Guide You Need." The free guide covers your best bets for buying a house, in a short and easy to understand format. Click the button below.
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