When Selecting a Lender, BEWARE!

Finding a mortgage loan provider has always been a major challenge for a consumer. It is a very complex process with a lot at stake; thousands of loan providers vie for your attention. Lenders usually get paid on a commissioned basis; meaning they only get paid if you close the deal with them. So comes the tales of piracy and predatory lending. Distrust is broad, and for good reason. Here are just a few of the abuses that ensue this market:



Rate Low-Balling (Lenders just saying what you want to hear, then change the deal---Also known as "Bait and Switch")

Opportunistic Pricing (Lenders that take advantage of your loan conditions to charge you more---Also known as Predatory Lending)

Market Niche Misclassification (Lenders telling their clients they are in a lower classification, like "Sub-Prime," in order to charge the clients more)

Price Omissions (Lenders that intentionally leave charges off the GFE in order to charge more on their fees and then add the other fees later)

Third Party Services (Lenders that charge more on outside services in order to gain more for themselves.)

Your Mortgage Professional will be able to see many different products and be able to sort through the products that do not fit your personal needs. This is why choosing a Mortgage Broker is so important.

Your experienced Mortgage Broker is your, "Johny on the Spot" guy. They work with lenders from all over the country, every day. And it's that ability to simply walk away from a lender that helps keep the lenders honest.

Like you mother always says, if you find an offer that seems too good to be true...it probably is. So if you are being offered a rate that is significantly below the going market rate, and you are not paying any discount points chances are the lender is trying a bait and switch.

 

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