Worst Mortgage Advice Ever That Made Me Scream
A potential new client contacted me yesterday and told me she wanted to refinance and asked me to look at her loan options. She then sent me all the paperwork required to apply for a loan.
This morning I analysed the information and sent details of five different lenders, their interest rates, fees and product details to her and then rang to discuss.
She became very apologetic and said her friend had told her to apply at ”lots of places” which she did last week and had just got an approval from her current bank. This bank was one of the 5 I had recommended. It was not the lowest interest rate available to her. She also said her friend had a mortgage broker who advised “not to put all your eggs in one basket” and apply at multiple lenders.
The advice she was given of applying at lots of banks is the worst thing anyone can do.
Every time you “apply” for finance it is recorded on your credit report. Too many enquiries flags warning signs to the lenders and can be enough for the internal lenders computer system to automatically decline your loan.
The reason you use a mortgage broker in the first place is to be able to look at all your loan options in one place. Each lender has a different criteria for working out how much you can borrow. I, as your mortgage broker, can tell you who you qualify with, the interest rates and product details. I give you your top 5 choices based on what you want from a loan. There is no risk of applying with five lenders only to find out the five you applied for will not give you a loan.
Was I annoyed with this person for wasting my time? Yes I was as I had started at 5.30am this morning to be able to provide service to other clients who were asking me to do things for them.
But I was really annoyed with the misinformation given by a friend who clearly does not understand the lending system could have put this person at financial risk.
To top it all off I was alarmed that a mortgage broker had given the worst advice possible to someone by saying to apply at multiple lenders. This not only puts the client at risk but also damages my industry which I cannot tolerate.
I am very proud of my professionalism and will always have the client’s best interest at heart even if it means sometimes I cannot help if it is not right to do so..
If you want to look at your loan options with no risk please contact me Kim Wight Mortgage Broker Sydney on 0412 167 551 or email email@example.com.