Learn how a multiple-bid process can keep relocation costs in check
Very few people will walk into a car dealership, point to a vehicle, and say, “Let’s sign a contract.” Most of us will compare the prices offered by a few area dealerships. When the salespeople know that they have competition, they begin reducing the vehicle’s initial cost.
However, many relocation management companies (RMCs) either own or are owned by mortgage companies. Therefore, when a client company wants to move its employees, the employees do not have a choice of lenders. The RMC and the mortgage lender know that the transferee is at their mercy concerning price, scheduling, and customer service.
Some RMCs use a multiple-bid process to ensure that transferees are getting the best price and service. There are some significant benefits to going through an RMC and having their mortgage lenders compete for relocation business:
Lenders are motivated to offer competitive rates and minimal closing costs. They are willing to be flexible with their approval criteria for individuals referred by an RMC. These borrowers can access special discounts and mortgage programs exclusive to RMC referrals. To ensure the best deal, at least three lenders submit bids for the borrower to compare mortgage estimates. These estimates are based on the borrower’s financial capacity, loan amount compared to property value, and the terms of available mortgage programs. This process is considered a standard practice for optimal results.
Each lender understands that its objective is to win the business. Therefore, they provide mortgage estimates that are fair and accurate with relatively no cushion to the costs.
Helping Keep Relocation Costs in Check
When utilizing multiple bids for mortgage services, transferees save an average of .32% on their mortgage rate. What does this mean for transferees? The lower rate will allow transferees to explore more options, such as larger houses, better neighborhoods, or simply enjoying the monthly savings.
With multiple lenders providing bids, transferees can compare and choose the best mortgage rate. This saves them money in the long run and gives them the flexibility to consider different housing options that may have been out of reach with a higher mortgage rate. Ultimately, this process helps keep relocation costs in check and allows transferees to make the most of their new living situation. With the potential savings on their mortgage rate, transferees can focus on settling into their new home and community without the added financial stress.
While cost is essential, so is the transferee’s experience. Allowing the transferee to meet with multiple mortgage lenders will engage him or her more in the relocation process. This promotes an overall good experience because transferees tend to be happier if they feel that they are being heard throughout the relocation process. And we all know that happy employees are productive employees.
GMS Offers Companies Freedom of Choice
Global Mobility Solutions (GMS) pioneered the “Freedom of Choice” model in relocation. By providing multiple bids for an array of providers, client companies and their transferees have saved money on services like household goods movement and mortgage loans. GMS continues innovating best-practice workforce mobility programs to make relocations easy and practical for clients and their employees.
This unique approach gives companies more control over their relocation budget and ensures that transferees have options that best suit their needs. By offering freedom of choice, GMS can tailor relocation packages to fit the specific requirements of each individual or family, making the entire process more personalized and efficient. This not only saves the company money but also helps reduce stress and uncertainty for the transferee, leading to a smoother transition and a more positive experience overall. With GMS leading the way in innovative relocation solutions, companies can trust that their employees will be cared for during the relocation process.
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Ann Knapp | CRP, GMS, CMC
Director, Transportation Services Ann has over 20 years of leadership experience in the moving and relocation industries. She is a council member for the International Association of Movers (IAM) Leadership Alliance. As a 2nd generation mover, Ann has worked in all areas of the industry from survey scheduling to claims settlement which has provided her with a well-rounded understanding of the ins & outs of moving. Ann is responsible for the day-to-day operations of the Transportation Team, the GMS Transportation Network, managing contracts, policy advisement, and monitoring quality.
