My friend said that with okay credit and no down payment, the terms they are offering me are impossible. I hope she's wrong as I already see the house I want and have had the approval letter and ALL the paper work written up with my terms. I'm just told to expect a bait and switch at closing. Also a friend of my said to try ditech. I had a car loan through GMAC that is Ditech so maybe that will help. Any advice? Thanks and God Bless
2007-07-13 15:00:29 · 5 answers · asked by paschaderk 2 in Business & Finance ➔ Renting & Real Estate
I agree with Jayde, don't deal with anyone you can't meet face to face, there is a lot of freud going on out there.
Your friend has a point, there are plenty of "great" initial rates available, which may seem impossible. The problem is that the rates go up and do it quickly. Unless you can make payments on the high end of your loan you need to avoid the deals.
I recently said to a friend, "I can't believe you signed this without showing me FIRST." They had a great loan for TODAY, but if they had read it they will be paying 3% more in 6 months, and 12% total within 2 years. They may as well have just handed the bank the keys to their house.
Take your friend with you when going over the loan papers. They don't have the emotional involvement that you do and will not be so easily distracted by the sales techiniques of slime ball loan officers. (and, yes, I realize that many are great people, but then we have people like the spammers here you will steal your shirt)
2007-07-14 11:29:44 · answer #1 · answered by Landlord 7 · 1⤊ 0⤋
If you are concerned, take the time and get a couple of second opinions from other lenders. I'm not a big fan of internet mortgage companies because you really don't know where your confidential information is going (like out of the country) and/or who is receiving it. I like to look at the person face to face.
But this is a major investment and getting a few opinions would be smart. You might even qualify for a first time homebuyer program that is not being offered by Lending Tree lenders.
Good Luck
CA lender
2007-07-13 19:19:15 · answer #2 · answered by lenderjayne 3 · 0⤊ 0⤋
Hi
The industry is very competitive, especially now that we are in a slump.
Better prices and better closing fees, elimination of junk fees are now commonplace.
Get the best deal that Lending Tree has to offer and then do a little research on your own. Even a 1/4 point can save tens of thousands over the live of a thirty year loan.
Try www.yourpropertypath.com for four to six bids in minutes at no cost and compare them all. Get the best for yourself and good lick!
2007-07-13 15:13:32 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Lending Tree does not write mortgages, they sell your information to other lenders who actually give you the terms. Bait and switch is very popular amongst on line lenders, they get you on the hook for these great terms, and when the docs come out, it looks nothing like what they promised.
Also, almost every day in here lately, someone complains about their internet lender missing their closing date and now they are looking at forfeiting their earnest money.
My suggestion, AVOID internet lenders. Try lenders in your area that care about their reputation.
2007-07-13 16:05:35 · answer #4 · answered by godged 7 · 1⤊ 0⤋
Lending Tree does not actually write loans. They 'farm out' your name to assorted lenders who pay to obtain the leads from them. Your friend is correct. Until the paperwork is signed, all you have is a pile of paper.
Anything can change prior to that time. You don't indicate which firm is supposedly handling this loan and underwriting it.
2007-07-13 15:10:56 · answer #5 · answered by acermill 7 · 0⤊ 0⤋