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Sticker Shock

Hello, My name is Keith Stonehouse, V.P. with Franklin Title Agency and also a Mobile Closer/Notary Public.

I am writing this blog in reference to about half the closings I have done over the past 6 years!

I have come to notice that not every Loan Officer truly educates their customers on the numbers and programs they are selling them. When I get to the closing table and start going over everything - Half the time the borrower seems to be shocked! Sticker Shocked by the bottom line, interest rate, and monthly payment! I think some of the reasons this may be is because they do not follow up after the initial good faith numbers after things have been adjusted.Another reason is simply because they do not want to deal with the sticker shock their customers may face in front of ME!

I wish I could educate more borrowers on this so that they are educated to ask the right questions before sitting at the closing table. Luckily I can talk my way through most all situations and let them know why the numbers are the way they are & why it most likely is a great program for their needs and situation! But, thats really not my job!

I think this is what kills repeat business for a lot of Loan Officers!

If you are offended by this blog - that means you are the Loan Officer that is not educating your clients!

OK... sorry to vent.

- Keith Stonehouse

Posted by Keith Stonehouse - Franklin Title Agency on 08/01/2007 10:19 PM

Comments (2)

sticker shock

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2 Comments on Sticker Shock

I've had the sticker shock syndrome hit when providing the buyers with the amount that they need to bring to the settlement table. After one " "what I need to bring $XXXX to the table? My down payment is only $YYYY!", I learned pretty quick to do a followup a week or so before settlement telling them when to expect the preliminary HUD sheet with the amount and also refer them back to the estimated closing costs we prepared at the time of the agreement. Now, I just get the "oh, yea, I remember".

08/01/2007 10:45 PM

by Judi Glamb, Associate Broker, ABR (Coldwell Banker Hearthside)

An honest GFE in the first place is an innoculation.

Then there is the GFE issued when costs rise by $100 or the rate rises at all.

then there is the rate Lock Agreement sent out for signature the day the loan rate is locked.

Then there is the GFE provided at least 24 hours ahead of Closing.

It's a pity that the industry won't regulate itself with determination instead of hot air.

08/01/2007 11:07 PM

by Alan Mills - Creating Closer Communication (ACN)