The reason I ask this is, I am a mortgage broker myself, and I have heard some really outrageous loan proposals by some of my competition, and I was curious of what exactly these other brokers have did. This way I can warn my customers if I recognize a similar scenario as yours.
2007-12-14 02:12:02 · 7 answers · asked by The Dragon 2 in Business & Finance ➔ Renting & Real Estate
Really all you have to look out for is the client telling you he got offered a deal that sounds too good to be true. If a borrower with a 540 score and mortgage lates is telling you he's getting a fixed mortgage at a low rate, he's probably being lied to. It's happened to me in the past where a borrower tells me they were offered a rate nealry 2% lower than what i was offering. Not only that, I was giving the client par rate so I knew there was no way he was getting that rate. Instead of getting upset, tell the client to go through the process with them if thats what they think they're getting. But re-assure them not to feel embarrassed when they come back to you because they finally realized they were being scammed by the other company. This is what I explained to my client, and at the closing table the closing cost's were higher, and the rate ended up being 1% higher than what I offered! So, he ended up calling me back, and closed the loan with me. Luckally for us, most of the bait and switch lenders are out of business if not going to be soon. Most importantly stay honest and fair with your clients. (which is sounds like you are!) Be careful not to make your clients feel like they're dumb or making a bad decision. With all the "persuasian" out in this industry, its easy to understand how your client thinks hes getting a better deal than what you offer. But, if your patient and understanding, they will come back to you in the end!
2007-12-14 03:19:38 · answer #1 · answered by Mortgage Man 2 · 0⤊ 0⤋
I have had people try it on me. But I did not go for it. I answered a newspaper ad, applied for a loan, was told I did not qualify for the loan and was offered a loan at two percentage points higher than what was in the ad. My credit score is 805.
I took my business elsewhere. I lucked out. I got a loan that was one-half a percentage pointer lower than the rate in the ad.
2007-12-14 02:18:39 · answer #2 · answered by regerugged 7 · 0⤊ 0⤋
It didn't happen to me, but a client. When they first applied with a company you see on TV all the time, it looked to be a great package. The clients didn't lock in the loan, they wanted to shop around a bit. The lender called them daily, pressuring them to sign up and when they finally decided to go with this lender, he sent a package of information. The new package had changed significantly, which he blamed on them not locking in when they first applied the week before. The closing costs went up, the interest was higher. What I think happened is that the lender was counting on them not reviewing the new package thoroughly.
2007-12-14 04:24:34 · answer #3 · answered by godged 7 · 0⤊ 0⤋
When I bought my very first new car, the car cost roughly 10 grand. I didn't have a lot of established credit so I was only able to find one bank willing to give me a loan. They said in order to give me the payment amount I could afford, I had to take out a loan for 16,000 and promptly proceeded on bull dozing me through buying a bunch of insurance policies through the bank. So then at 20 yrs old I had a bunch of stuff like life insurance and disability insurance that I didn't need, and I paid 16 grand for a 10,000 car. :(
2007-12-14 02:18:01 · answer #4 · answered by Mick 6 · 0⤊ 0⤋
I had a guy out to my house who had a great fixed interest loan "tailored to fit veterans" After I sat there and listened to this guy defecate from his mouth for 1/2 hour I added up all of the fees and surcharges and they cam out to be about $13000.00. He was trying to pressure me telling me I had to "take advantage of this now" or I would loose this great opportunity. I then told this guy that he was a crook. My payment would have increased about $150.00 a month by dropping 1.75% in interest. He claimed that it didn't matter because all of the fees were being rolled into the big figure. I told him he had about 2min to get out of my house before he got a veteran *** whooping and then reported him to the state and to the veteran affairs.
P.S. I ended up re-financing with a company who did not charge me ANYTHING! not one cent.
2007-12-14 02:30:43 · answer #5 · answered by blueman 5 · 1⤊ 0⤋
Pretty much waiting for the people who offer those craps idea of loan to burn.
2007-12-14 03:22:59 · answer #6 · answered by rjwalsh_82 2 · 0⤊ 0⤋
noble of you.
as the market crashes and burns people are screwing others over!
2007-12-14 02:14:42 · answer #7 · answered by Anonymous · 0⤊ 0⤋