Mortgage Broker Bait and Switch
An article submitted by: Tommie W. Gibson, who is solely responsible for it’s contents.
Within the mortgage industry (like all industries) there are crooks that prey on the unsuspecting.
If you speak with several different Loan advisors and all but one are quoting you a mortgage loan that offers you close to the same rate and terms, but one is quoting you a much lower rate with much lower fee’s, what would you do?
Unfortunately, most would choose the deal that seems too good to be true. I lose clients every week because of this. The end result is always the same. I follow up with the client a few weeks later to find out, yes they closed the loan with that loan advisor but it ended up being worse than the deal that I had offered.
Now you’re probably asking yourself, how could this happen? It’s pretty simple actually. So simple in fact that as I mentioned earlier it happens weekly to me personally. The loan process can be a long tedious process. Your home is for most their largest single investment. With that comes stress. There are what I call “hoops” lenders have you jump through, throughout the entire process. Some lenders more than others, but you can rest assured that by the time you are at the closing table you are ready to be done with it.
You’ve probably spent 3 weeks of getting different documents, signing stacks of papers, discussing different options, making decisions that will affect your life monthly for the next 30 or so years. Not to mention ordering and paying for an appraisal. So now you sit down a the closing table and your rate is higher than you had been quoted originally.
Ironically it looks just like the deal the other three loan advisors offered, or worse, but you tried to better deal them. What happens next is just a part of human nature. You’re ashamed and to go back to one of the honest advisors that you had spoken to earlier, would be embarrassing. You fear that you would have to start the entire “jumping through hoops” process over again. You would have to order and pay for another appraisal (note that’s not always the case). And… what the heck it’s only $30 more a month than you were expecting anyway (by the way, that’s almost $11,000 over the term of a 30 yr. mortgage)……so you do what most do and you go ahead and sign the loan.
People’s inability to get up and walk from a closing when “the perfect loan” goes south, continues to reward the crooks. They bank on this, and frankly it’s sad that it works.
I hope this information helps you in making your decisions.
An article submitted by:
Tommie W. Gibson, who is solely responsible for it’s contents.
http://www.tommiewgibson.blogspot.com
