Variable Pricing Model on VA loans, Secrets lender won’t tell you!

Transcript

We’re here to talk about the variable pricing model on VA loans. If you are a buyer, A person who’s gonna refinance or a realtor referring a lender, it’s important to know what is the profit margin set up at that company. Now you can work with a good loan officer. They might be a good person, but most of the companies, and when I say most 99% work on what’s called a variable pricing model.

What that means is they change the profit based on what they can get away with. So usually you come in, they give you this very. Price. That’s, and then you, the people come back and they say, you know, that seems kind of high. I’m gonna shop around. Well, you know, I’m gonna check around. I’m gonna get you a better deal.

I’m gonna hook you up. Okay, cool. That sounds good. You’re gonna hook me up. Cuz those first numbers are real high. They come back something a little bit better. Then you go back and forth after about five or six rounds, that varying pricing their, their pricing comes down. So they vary their margins, they vary their pricing.

And that’s unfortunately the most profitable way to run a company. It’s not how we run it. And as a. That sets us apart. So if you are referring a client to a lender and they do this, this can erode trust. And since you referred them over, this can sour the entire transaction. Cuz once people get the idea and they get it in their head that something’s wrong and they’ve getting taken advantage of, that’s a very, very hard feeling to shake.

And it’s easy to put on too. And considering that most of the lenders. It’s probably pretty accurate. So their feelings are accurate and they’re justified, and you just don’t want that to translate into a buyer ruining it or a realtor. This is gonna be a tough situation to get out of. You can avoid that by talking to your lenders directly and saying, do you give different rates to different people?

They say no. Have a couple different people call and if you get different rates, you’ll know what happened. Hopefully this is helpful. Have a good day Veterans.