Apr
07

Process Versus Service In The Mortgage Industry

My mentor, tutor, and broker John Bargis from Mortgage Edge brought to light today a differentiator that is clearly emerging in the mortgage industry.

Do you process or service your client?

Are you, as a client, looking to be serviced or just to be processed?

Here’s what I mean exactly illustrated by a real-life example.

I have these great clients who have been engaging with me on every facet since January. We have developed all sorts of different scenarios for them: Keep condo, sell condo, refi condo, buy a house, max down payment, minimum down payment, amortization scenarios, everything under the sun. This is where I present to my clients the true value of working with someone who participates in the service-type of mortgage brokering. I not only love what I do but I know what I do very well and come up with every possible angle, down-fall, or crack in the deal to come up with an answer to make these people feel confident in what we have going on because a lot is at stake: Deposit money, emotions, relationships even.

Compare this to a process-type of broker. “Hey there! I’ll offer you the best rate, but the worst service”. Of course they don’t say this explicitly but it’s really the case when you read their google reviews. Do they care to compare different terms and the break-even effects of going shorter-term vs long-term? no. Do they discuss penalties, portability, and other clauses? Maybe, but rarely. They just want to get you in the cheapest car on the lot so you can get to and from work every single day knowing you got the cheapest car on the lot. Sometimes it’s a good used car, sometimes it isn’t. They don’t care. Their game is volume.

Then what happens?

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