This Sunday's paper had a Dilbert cartoon strip that caught my attention and related directly to how mortgages are being offered in the name of "competition".
The Dilbert cartoon was about the boss asking Dilbert to prepare a proposal that is full of lies and which if they were to win, they would have to add "unexpected" changes that would eventually drive the costs up.
Dilbert points out that they didn't have the right products nor the expertise to handle the customer's needs. The boss then says to say they do and they will figure it out later. Then Dilbert points out that they would still be the most expensive bidder to which the boss says to bid low and they will make it up in changes and unexpected essential upgrades.
Does this all sound familiar to you? If you are shopping for a mortgage, 
especially if you are focused on getting the lowest rate and fees, you are more than likely going to run into this situation.
There are way too may mortgage companies out there that play this game. Bankrate.com, Lending Tree, and many other websites are used to get your information and potentially "sucker" you in. Granted not all of the lenders using these types of services do this, but beware and be prepared.
A typical scenario is to offer the lowest rate and/or fees or some "special" program such as no closing costs. This gets them in the "competition" for your business. Chances are that the person doing your loan is only qualified enough to do just that, not to truly offer assistance in choosing the right one for you. After they gain your business, changes start happening with or without your knowledge and ultimately you end up with a more costly deal at the closing table.
Let's not forget that many of these sites are also "lead" farms and that creates another problem, trigger leads. I will leave as simply getting more calls than you expected as your information gets sold many times over.
There are also many who claim to be things they are not really qualified for as well. This is where your research will need to be done. If you seek added value in areas such as mortgage planning, read some blogs of those you are thinking of doing business with and make sure they really know what they are doing.
Some have taken the step to become "certified", but this does not guarantee anything either. There are a few reasons why this is true, ranging from the fact that not all designations are trademarked (allowing for use without the training) and that some do not maintain adequate levels of knowledge to be the best at what they do.
So, as with many cartoons, Dilbert shows the "inside" of how mortgages are marketed and how you should beware. Do your research and stop focusing only on the rate and fees. Instead, focus on the "best value" and the level of expertise demonstrated. You deserve to be dealing with a trusted advisor, not just another "loan hack", so make sure you are.
(Dilbert is a registered trademark of Scott Adams and the main website for the cartoon is www.dilbert.com)
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