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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California
  • 3 Really dumb ways to try to boost business

    Posted Under: Market Conditions in Alameda, Home Buying in Alameda, Agent2Agent in Alameda  |  August 24, 2014 12:58 PM  |  85 views  |  4 comments

    1) Slam your competition with baseless reviews:  I recently received a one star review on my team page.  Horrified I immediately clicked on who this was as it was the first bad review we had gotten.   It was another local lender who I have never met, shared a client with etc... I emailed him to see how he came to this review and got nothing back. Why did I get nothing back? Because it was a baseless review meant to try to lower my overall rating. If you are so desperate for business you have to become an internet troll you should probably just leave the business now.  Hating is not going to boost your business it is just going to show you have too much spare time on your hands. 
    2) Promise what you cannot deliver:  This is like the golden rule of sales.  Never over promise and under deliver yet is it something we see every day in the mortgage business.  There is always a lender quoting 1% lower than the rest of the market to get the deal.  Do they ever deliver that rate?  No.  But their theory is that once they get the deal far enough then they can give the client the bad news that they have a higher rate but the client will be too entrenched to switch.  This may get you one deal but you will lose the Realtor and future referrals.  As a Realtor if you hear from client that the lender you are suggesting is doing this you need to switch lenders because this is a reflection of you and you just lost the referral too.
    3) Take every deal; even ones that will never close:   Some loans are not going to happen.  The borrowers do not qualify.  It will not close.  Part of being a good lender is being able to say no and put the client on the path to become a yes.  Unfortunately there are some lenders who in a desperate bid to boost business take every deal and try to "get it to stick."  You see this a bit more in the broker world then in mortgage banking because as a broker you have multiple different sources to shop it to.  This is terrible for the client and Realtor because what they keep hearing is "II have submitted it to XYZ and I really think they will go for it even though ABC and HIJ did not."  What happened?  XYZ declines. This is a deal that would never close but the client, the seller and the realtors have been put through an escrow that will never close and emotional turmoil because the lender was giving it a shot.  The client/borrower may lose thousands of dollars on inspections and their deposit just because “Bob” thought he would “see if it could stick.”

    Bottom line:  I understand everyone has to make a living.  You can make a great living in this industry and stay ethical. Know your guidelines and treat your clients and realtors as you would want to be treated  and you will always have a living

    If you have been a victim of one of the three above I stongely suggest this song.  It is fun and reminds you to Shake it off.  www.guaranteedrate.com/jenniferbeeston

  • How to protect your $ and credit from criminals and help others

    Posted Under: Crime & Safety in Alameda, Agent2Agent in Alameda, Credit Score in Alameda  |  July 9, 2013 10:29 AM  |  1,856 views  |  1 comment


    CARD SKIMMING : The act of using a skimmer to illegally collect data from the magnetic stripe of a credit, debit or ATM card. This information, copied onto another blank card's magnetic stripe, is then used by an identity thief to make purchases or withdraw cash in the name of the actual account holder

    The problem: Did you know one of the fastest growing ways for identity thieves to access your credit is via skimmers?   Did you also know that the number one location to place a skimmer is a gas station pump?  Indistinguishable to the naked eye thieves can easily put skimmers on gas station pumps.  When you swipe you card to pay for your gas you are giving them everything they need to make a duplicate credit card of yours and empty your bank account/credit card.  This is happening all over California in even small towns.  I thought that in my small town there was no way thieves would infiltrate.  I was wrong both myself and two of my friends got emptied at the same gas station. This is happening EVERYWHERE!!!

    The Solution:  I really like this solution because it protects you but also helps schools and charity organizations and costs you no additional money.  It is super simple. Buy scrip gas cards.  They cost no more then you would pay at the pump and you use them exactly like a credit card but your identity is safe the entire time.  Thecharity or school makes money from you protecting yourself.  That is clearly a win win.

    Check out and pick your organization today http://www.escrip.com/

  • Why a Realtor will insist on you being prequalified with their lender

    Posted Under: Home Buying in Alameda, Financing in Alameda, Property Q&A in Alameda  |  June 28, 2012 7:05 AM  |  942 views  |  1 comment

    As a lender one of my main sources of business is realtor referrals.  These are people we work time and time again, that know how we work and what we can accomplish.  They trust their livelihood with us every day.  If we can’t close the loan then they do not get paid, they have an unhappy client and may get bad mouthed in the community.  We take our responsibilities as lenders very serious because it is never just a house at play. 

    Part of working with Realtors is qualifying their clients or getting them approved. Often clients bristle at this as they feel there must be some secret deal between the Realtor and the lender.  For the record there is not.  If a lender ever paid a realtor or gave them gifts as thank you for clients both the Realtor and the lender could lose their license.  A lead is not worth our livelihoods or the realtors.

    Why Realtors insist on clients getting qualified with a trusted lender:
    1) So you do not go home shopping when you should be saving or working on your credit
    2) Going shopping in too high of a price range.  If you have been looking at 400k homes and only qualify for $325,000 it will be a tough trade down.
    3) If you have 12 pages of collections on your credit report, no job and no money down you have absolutely no business looking for a home.  And Yes, I run into people like this every day. You are wasting the realtors time and gas. Realtors only get paid if you purchase closes.  Looking without the potential to close is completely rude.
    4) So you do not lose your deposit.  When you fill out a purchase contract a deposit is required.  If you cannot meet the obligations of the contract you lose that deposit as well as any inspection and appraisal fees you paid.  If the lender you chose online can’t close or you do not really qualify it could cost you thousands of dollars
    5) To put your purchase contract together the Realtor has to know what exactly you are qualified for.  Saying I am qualified up to $450,000 is not enough.  If you were qualified for VA up to $450,000 that is a lot different than other loan programs and the purchase contract has to address that
    6) So they can sleep at night.  If they know you are using their lender, they know you are taken care of and can actually close this helps them to sleep. And a well rested Realtor is a happy realtor who has a happy client etc….


  • FHA is about to get more expensive due to our Fantastic (Hardly) adminstration

    Posted Under: Market Conditions in Alameda, Home Buying in Alameda, Financing in Alameda  |  February 14, 2012 10:40 AM  |  1,574 views  |  No comments

    The Obama administration in yet another move to stall our housing economy (they say save all indicators and historical data points to stall) has decided that the annual mortgage insurance premium on FHA loans should be raised again.  Yes, again.  This was part of their FY 2013 budget they just sent to Congress. 
    A brief history of Mortgage insurance: It was raised from .55% to 1.15% last year which horrified lenders and borrowers.  Not paying any attention to the negative circumstances they created and increased borrower hurdles they created they are increasing it again.  Apparently, the Obama administration needs a reminder lesson on cause and effect.

    The New Increases:
    1.25% annual premium for loans under $625,500
    1.5% annual premium for loans over $625,500
    Example of why this is horrible: On a $700,000 loan that is an extra $204 per month, making the monthly mortgage insurance $875 per month.  That is a very nice car payment except there is no car and it does not go towards anything tangible for the borrower. 

    They claim that FHA's delinquencies are increasing, which they are.  But they are not on loans originated in the past few years but rather loans originated when FHA had very loose credit score requirements and allowed the borrower to do 100% financing through down payment assistance programs. AKA 4+ years ago.  Also they are not on the higher end loans yet that is who is being hit the hardest.  Seems fair?
    When: The changes are expected to occur in mid April.


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