If you are new to the whole mortgage lending process, you may end up leaving thousands of dollars on the table, even if you are seeking the simplest of the plethora of available home loan terms. In this FAQ, I will show you 7 ways that a lender can take advantage of you.
- “Don’t worry your rate is locked”: A verbal agreement cannot be trusted. Although this is illegal in practice, it is done more times than you may think. Hence, it is advisable that you get the loan agreement in official writing. There is an official form for this.
- “Oh your rate is going to be very low”: This is the old classic that can be avoided if you get the loan estimate from the loan officer and it has the correct numbers you agreed on.
- “Your appraisal came in low, so yes numbers changed”: This is possible, but it is advisable that you have a second expert look at it. This second expert maybe your local bank’s mortgage broker. They are less likely to cross you.
- “Your appraisal cost will be refunded at the funding”: A statement like this from your lender will result in you paying for the appraisal cost eventually.
- “Your credit scores went down that’s why the rate and cost increased”: While it is true that a dip in your credit scores may affect the loan’s rate, it is advisable that you verify this on your own. This is because brokers will often use this statement to trick simple borrowers to accept higher rates.
- “We have the lowest rate in the country”: You can’t take the word of your lender for it if they told you that they have the lowest rate. You need your own tools to carry out an extensive home loan shopping. Parlend.com offers free mortgage shopping tools that will help you in finding a fair rate and cost in real time while keeping you anonymous.
- “Yes we can Yes we can Yes we can”: Loan officers are more of salesmen than doctors. They will start with a lot of yes’s until they give you the below-belt blow, “No, I am sorry we cannot.”.
Check out our free mortgage shopping tools at https://www.parlend.com