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Biggest "I'm going somewhere else" complaints are
1) the fact that we charge closing costs on our home equity products
2) the rate, particularly for high loan-to-value loans where the rate shoots up to balance the risk of a potential lack of equity in the house if there is any sort of downturn in the market of that neighborhood
Customer the first
Me: The closing costs are estimated to be $405, contingent on there being no unexpected issues with the appraisal or title search. This covers the appraisal, title search, flood determination and recording costs.
SC: I'm not willing to pay more than $300
Me: Unfortunately the services that we will need to have done in processing your Home Equity add up to this amount.
SC: No. I was told my costs wouldn't be more than $300
Me: The only quote in the initial disclosures is the maximum possible $750. Loan officers cannot give the more exact estimate as they do not determine what exact services are required. That is part of the reason I have reached out to you directly, to go over this. If you would like to think about it, I can either go over the other details with you by phone or send you an email so you have the basics in writing. In the meanwhile, I can keep your application on hold for 30 days.
SC: I'm going to Other Bank. They don't charge closing costs.
Me: [knowing that Other Bank has an annual fee and charges a higher rate for requests under $100,000] I will definitely keep your application on hold for you then. Please remember to inquire about their annual fees and the rate for your request amount so you have an accurate comparison.
Customer the second
SC: Why is my rate 7%? Your website says 5.5%!
Me: The website states the lowest possible rates for each home equity product, contingent on credit score and loan-to-value. In order to get a home equity in the lower rate category, we would need your request and your first mortgage balance combined to be under 85% of the appraised value of your home. While I do not yet have an appraised valuation, your stated value of $x makes your estimated loan-to-value 97%, which means 7%, variable, is the lowest rate available for the Home equity line of credit.
SC: Other bank will get me a rate of 5.5%
Me: [knowing that Other Bank does not offer home equity products over 90% loan-to-value] I can definitely keep your application on hold over the next 30 days while you explore other options.
And yes, both customers came back to do the loan with me. As did the gentleman mad about the costs being $150 (literally the cheapest I am able to offer.)
So compare elsewhere. I'll wait.
And yes, they don't always come back. But I have an advantage here. See, my department is chronically short staffed, and I have the best loan numbers of those here. I literally do not care if you cancel your application. In fact, I'd rather you do so during this upfront call than wasting my time and cancelling at the end. The costs are the costs and the rate is the rate.
1) the fact that we charge closing costs on our home equity products
2) the rate, particularly for high loan-to-value loans where the rate shoots up to balance the risk of a potential lack of equity in the house if there is any sort of downturn in the market of that neighborhood
Customer the first
Me: The closing costs are estimated to be $405, contingent on there being no unexpected issues with the appraisal or title search. This covers the appraisal, title search, flood determination and recording costs.
SC: I'm not willing to pay more than $300
Me: Unfortunately the services that we will need to have done in processing your Home Equity add up to this amount.
SC: No. I was told my costs wouldn't be more than $300
Me: The only quote in the initial disclosures is the maximum possible $750. Loan officers cannot give the more exact estimate as they do not determine what exact services are required. That is part of the reason I have reached out to you directly, to go over this. If you would like to think about it, I can either go over the other details with you by phone or send you an email so you have the basics in writing. In the meanwhile, I can keep your application on hold for 30 days.
SC: I'm going to Other Bank. They don't charge closing costs.
Me: [knowing that Other Bank has an annual fee and charges a higher rate for requests under $100,000] I will definitely keep your application on hold for you then. Please remember to inquire about their annual fees and the rate for your request amount so you have an accurate comparison.
Customer the second
SC: Why is my rate 7%? Your website says 5.5%!
Me: The website states the lowest possible rates for each home equity product, contingent on credit score and loan-to-value. In order to get a home equity in the lower rate category, we would need your request and your first mortgage balance combined to be under 85% of the appraised value of your home. While I do not yet have an appraised valuation, your stated value of $x makes your estimated loan-to-value 97%, which means 7%, variable, is the lowest rate available for the Home equity line of credit.
SC: Other bank will get me a rate of 5.5%
Me: [knowing that Other Bank does not offer home equity products over 90% loan-to-value] I can definitely keep your application on hold over the next 30 days while you explore other options.
And yes, both customers came back to do the loan with me. As did the gentleman mad about the costs being $150 (literally the cheapest I am able to offer.)
So compare elsewhere. I'll wait.
And yes, they don't always come back. But I have an advantage here. See, my department is chronically short staffed, and I have the best loan numbers of those here. I literally do not care if you cancel your application. In fact, I'd rather you do so during this upfront call than wasting my time and cancelling at the end. The costs are the costs and the rate is the rate.
Dealer tried to weasel out of it, but he threatened to take his business elsewhere if they did.
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