Georgia Homebuyers: What Everybody Ought To Know Before Applying For A Mortgage On The Internet

In Georgia, you see the mortgage commercials 45 times every day.

It's reached the point you don't even need to grab for a pen to write down the web address before you head to the computer and pull the site up so you can type in all your personal information.

"Banks Compete!", "Get at least four offers" - The knowing smirk between husband and wife as they look out over the herd of lenders lined up out the door of their home study. The wife shouts from the study for the next victim as another dejected mortgage broker skulks out of the house while at least 20 more brokers line up down the stairs waiting for their chance to beg for the business.

I'm sure you're thinking how wonderful that would be. This is America. Competition is good. Just wait, though, until you're answering the 150th call from the 50th salesman when you only applied three days ago. Heaven forbid you put your cellphone number on the application. Better hope you have one of those unlimited calling plans. And of course you put your work number in the application, because the space was there for it and you couldn't see the next page until you gave it up. Now all your coworkers are going to love you for converting them into your new answering service to take messages from salesmen.

There are hundreds of the sites - all running ads on TV and 8 or 10 popping up at the top of the list every time you do an online search.

What you probably didn't realize is that these companies are not mortgage companies. They are marketing companies that harvest information and sell that information to mortgage brokers as "leads". Your information isn't carefully examined and parceled out to the lenders whose programs best meet your needs. Your information will be sold immediately to at least three high pressure salesmen whose companies paid top dollar for the lead and expect them to sell you something...quick.

(Notice that I did not called them salesmen and not loan officers, or mortgage planners or mortgage advisors. No - these people are only calling to sell you on whatever program and rate makes them and their company the most money, regardless of your situation.)

Once you're in the system, the information will remain in the database for as long as a year while being sold again and again - with the price based on how long it has been since you entered your information, and how many people your information was sold to so far.

When these folks claim you'll get at least four different offers what they are really telling you is that they are going to sell your information to at least four different brokers. Does it stop there?

Not quite!

Once the salesmen have relentlessly dialed your number to the point you've cursed them out, or they've given up and gone back to selling vacuum cleaners, there are other companies that will pay them for your information or allow them to trade your information again for more leads and start the whole cycle over again.

If you've been through this already don't feel alone. It's big business. These companies are selling thousands of leads a day.

Despite advertising claims to the contrary, these lead companies do not care if you get the best mortgage deal for your financial situation. They just need another name and number to sell for $35 to as many high pressure salesmen as they can. If you want lenders to compete for your business, check with your real estate agent, your accountant, your financial planner or even your friends. Then make some calls to a few different lenders. You will do a much better job of finding lenders who will really care about your needs and desires because they want to refer other people to them. They won't just close quick and move on to the next lead.