I had an idea for a new business. It’s a website where sick patients can go to diagnose their ailment. Simply type in your symptoms and the website will diagnose your disease, prescribe medication, and ship it to your door within 24 hours. No need to speak to a doctor or a pharmacist. You can do it all yourself!
Would you trust such a website to properly diagnose your ailment? Would you trust the website to know your entire medical history, know whether the medication it is prescribing is best for your physiology, or whether it will interact with any of your other medications? Would you actually take this medication without first running it past your trusted pharmacist??
Something similar has been happening in the financial services field for years. Many large financial institutions employ “Robo-Advisors” for those investors that don’t want or believe they need a human to interact with.
Are they right? Early indications suggest they are NOT.
Human nature is such that most people make investment decisions emotionally rather than logically. Thus, while the investment fees through a Robo-Advisor may be less, many investors using Robo-Advisors are investing too aggressively or too conservatively for their unique situations or time horizons. They are buying on greed and selling on fear. Thus, while they may be saving pennies on fees (penny wise), they are losing huge sums (pound foolish) over their investment lives.
Now many mortgage lenders are offering similar services which allow borrowers to obtain a mortgage using a completely automated system. A borrower can apply for a mortgage, upload requested documents, and hopefully be approved (or denied) without ever speaking to a person! If you’re used to working with an “order-taker” at a “Big-Box Bank” who simply takes your order without offering any advice or guidance, then using one of these Robo-Lenders will likely provide you with a similar – albeit poor – experience.
However, since your mortgage and your home are likely the most expensive and complex investments in your life, why wouldn’t you seek help from a competent, qualified, and Certified mortgage professional?
In this crazy lending environment, it’s critical that you work with the right people who know what they’re doing and can get the job done. Working together, we’ll ensure that your transaction goes smoothly and stress-free. You’ll receive accurate information, valuable advice, and a concierge experience. We’ll ensure your mortgage matches your needs, complements your financial plans, and helps you attain your financial goals.
And guess what? The rates and fees you’ll receive from Mortgage Wealth Advisors are probably about the same as if you used one of those Robo-Lenders or went to “Your Bank.”
The big difference? Your loan will actually CLOSE.
Warren Goldberg is President of Mortgage Wealth Advisors, a Certified Mortgage Planning Specialist®, and a published author. His interviews include Blog-Talk Radio, Newsday, The Daily News, Anton Press, and the Long Island Herald. Since 1992, he’s been sharing his financial knowledge and wealth-building strategies, including how to properly use your mortgage as a financial tool. His clients regularly express their trust and appreciation by recommending friends and family call when in need of mortgage, real estate, and financial guidance.