I was asked recently by a realtor why every deal we did had a different HUD, set of charges, etc. etc. She indicated she always knew what she was paid-3%. I explained to her that what we charged depended on the loan size and also if the lender was offering a rebate in addition to our origination fee. It made me think as I believe in being honest and upfront with everyone. It seemed to work with the realtor-all she wanted to know was the truth. Why is it that we feel like we can't justify what we charge? Like we need to keep it a mystery. In fact, I've decided that I charge 1% on all my loans (unless it's a larger loan amount) and I communicate that upfront with all my borrowers.
The message to everyone here should be that it's best to communicate fully with our borrowers and to answer all their questions. After all, hopefully this is what we expect when we do business with someone else. Why should it be any different when we're doing the transaction? I encourage everyone to operate their business this way. You'll sleep better at night. Have a nice weekend!
Paul
Paul McFadden
Thanks, Susan, Armando, and Steve. I appreciate your comments. It's nice to know that there are like-minded people out there! Have a great weekend.
Paul