Are you a Loan Officer that advertizes how cheap you are? Can you do a mortgage cheaper than anyone in your market? If that's your moto, then I hope we compete in the same market. Why is that, you ask?

The answer may come as a surprise to you, but a majority of the public doesn't want "cheap". Oh, they say they do because that's the American Way, but by and large, people pay for quality. If you're a Loan Officer whose whole purpose of doing a mortgage is to undercut your competition, where to you stop? AND, what kind of borrower are you attracting?

If you talk to a veteran Loan Officer, they will tell you that's it's a lot less hassle dealing with a $400k mortgage than a $75k mortgage. Why do you think that is? (you folks in Florida and California don't laugh, in the mid west you can get a pretty decent home for less than $100k)

Generally speaking, people that have higher priced items are more into the quality of service rather than the price of service. I'm not saying they overlook price, but they usually will pay a bit more for a smooth transaction. I'm also not saying that if you're a Broker who advertizes being the cheapest that you won't get the bigger deals, but when you have all the other smaller deals piling on (which isn't always a bad thing), how is your work load spread? Think of it this way, would you prefer to do two $400k deals or 8 $100k deals? Guess what also happens here...$400k folks usually know other $400k folks. Do you see what I'm getting at now?

The Yugo may have been good for some type of people, but it didn't stay around long. Was it the quality of the car? BMW's are NOT the cheapest cars around and they NEVER advertised to be. So Loan Officers, ask yourself this, if cheaper is always a better way to advertise, why is the Yugo gone and the BMW is still thriving?

And now I would like to invite you to get "Mortgage Info With An Attitude" with free weekly answers about the mortgage business in the Mortgage Mailbag. As a Bonus, you'll receive the Special Report "The 5 Biggest Myths about the Pay Option Arm and the Real Truth About Them". You can access this free service and the bonus at http://www.MortgageMailbag.com

Source: www.articlecity.com