- Published Mortgage Rates
Far and away the most common scheme used by mortgage companies to lure unsuspecting borrowers through the front door is to publish insanely low mortgage rates that precisely 3 people on the entire planet might qualify for. (Ok, ok… So maybe 4 might qualify!) It’s frustrating because you walk through the front day expecting this awesome mortgage payment, only to be told that you don’t qualify for this program – But here’s a consolation prize of a loan at double the monthly payment!
Really, it’s little more than bait and switch. Kind of like those car commercials that show you a loaded $150,000 luxury sports coupe with “$500 monthly payment” flashing next to it. You get to the dealer to check out your new ride, only to learn that you’d need to put 40 or 50k down and limit to driving 19 miles per month on a lease to get that payment. Buyer beware indeed!
2. Quoting Rates Without In-Depth Credit And Income/Situation Analysis
It’s infuriating that this one even needs to be discussed since one of the first things you learn when studying to become a licensed mortgage loan officer is that there are quite literally 100’s of variables that impact what a borrower will qualify for, and what rates and costs will be involved. It’s so elementary to the process, that any loan officer that still attempts to give you an estimated interest rate, payment, or qualification without first performing a complete analysis is doing so despite the fact he/she knows they are misleading you.
As surprising as it may be, loan officers are in fact born without a crystal ball just like the rest of humanity. haha – So those pretending to know something, or be privy to info that allows them to quote rates and costs prior to exploring your unique situation is someone who is demonstrating that they’re willing to say anything to lure you in. I heartily recommend running in the opposite direction of such loan officers – Preferably with lots of screaming and waving of the arms! 😉
3. If It’s Not In Writing It Doesn’t Exist
This is my final tip for this article. You’ll make out better in the long run if you operate under the assumption that until you have something in writing, it’s not real. Words are just words – Until the ink hits the paper you really don’t know if you’re looking at a solid offer of credit, or just someone’s best guess. Ask for everything in writing, even if you feel like you’re being a bit of a pain in the backside – Better to be a little annoying and protect your assets than to be laid back and be taken for a ride. This is after-all one of your biggest investments you’ll ever make. Best to be proactive and know what you’re getting up-front. No one likes surprises when it comes to their mortgage!
Ok, that’ll wrap up my 3 tips for today! However, I’m adding fresh tips regularly in the form of articles, posts, and video, so check back often! I realize just how important it is to make the right choice when it comes to your mortgage – Whether you’re buying a home, refinancing, or consolidating debt. That’s why I offer free 15-minute Mortgage Strategy Sessions – 0 pressure – Just the facts. I strongly recommend you take advantage of this free service. It’s done over the phone, and we’ll dive into what options work best for your unique situation. Here’s how to request a Strategy Session now: 702-482-8421