“Making Recommendations, Even When Your Client Doesn’t Want One”

 When I take a mortgage application on a purchase transaction, one of the numbers that gets estimated often is a monthly homeowner’s insurance cost. If you have done mortgages as long as In have I would have a pretty good idea. 

In taking this particular application I had estimated $100 per month, but the clients made it very clear they would be using this particular agent and agency. I would never discourage them, but always suggest that they shop for the right coverage and price. 

We received a quote which brought the monthly cost to $210 per month. The problem was once this amount was entered, the approval we had made the transaction ineligible. Yes, sometimes the numbers are that tight, especially when the clients are buying a home and haven’t sold their existing home. 

I contacted the clients and recommended they get a couple of more quotes. Begrudgingly they took a couple of referrals and sure enough one was for $109 per month the other was $98. We were back to a mortgage that we could get done. 

I know there is a fine line between giving someone a referral that they don’t want, because they like who they are with, but when the costs for using that person or agency makes my client’s loan unattainable, it now becomes my responsibility to give a recommendation even when it is not wanted.