How to get the cheapest mortgage in town


Ok.  So, I already have a rather long post completely dedicated to “how to shop for a mortgage” — the post gives great advice on how to compare brokers/lenders, how to make sure that you are comparing apples to apples and how to make sure that the guy (or gal) on the other end of the phone that you are talking with is not simply a recent graduate of two-week mortgage school but is a real-deal, full-time, mortgage professional.  Speaking of mortgage school . . .

Question:  Do you know how many questions are on the Georgia state mortgage broker exam?  Do you know what score you have to make in order to pass?

Answer:  There is no test.

There are certain requirements to hold a mortgage license and certain education/experience requirements for being an officer or manager in a mortgage organization, but for the “street-originator” (to use some mortgage-jargon for you) for him or her, there is no-test — scary but true.  I had someone once tell me that as soon as their relative was done with (insert big-name mortgage company here)’s two week training course that he would be “fully-certified.”  Can you believe it?  Fully-certified?!  A fully-certified what? 

As you might guess, lots of people have come up with ways to disguise their naviete’ . . . and others have figured out ways to charge people a lot of money to be “certified.”  It kind of reminds of one of my all-time favorite movies . . .  

“He’s bonafide! . . . He’s got a job!” 

So, even though I have already written on how to shop for a mortgage, some die-hard-penny-pinching-web-shopping consumers will want a more simplified equation to finding the cheapest mortgage in town.  So, do you want to know how to get the cheapest mortgage in town??

Find the absolute newest loan officer on the planet and petition them to do your loan.  Will you get great advice?  Probably not.  Great service?  Possibly, but unlikely.  A smooth, on-time closing?  50/50 at best.  The right loan product for you?  Maybe.  Follow up after the loan process to help you manage your mortgage?  It depends, but I doubt it. 

If you want to take your chances to be someone’s very first customer, I commend you for your valor and your willingness to save a few dollars at all cost . . . I hope the few dollars in saved fees will make up for the (possible) ten-hour closing.  You laugh; it’s happens all the time.


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