Looking for a lender? Shopping for the lowest rate? GREAT, BUT BE CAREFUL!!!
Unsuspecting, inexperienced borrowers get misled all the time, and it ends up costing them–big time. My preferred lender, JVM Lending out of Walnut Creek, CA practices what they preach: Ethical lending. They do a great job educating our clients, helping people make informed decisions, because the loan with the lowest interest rate is not necessarily the best loan to get.
I often share JVM’s blog posts, and this one is a must-read:
“MISLED BORROWER INSISTS WE MATCH FICTIONAL RATE
This is a surprisingly common occurrence: A borrower comes to us with a ridiculously low rate quote from another lender and insists that we match it.1. …(READ MORE)
We then ask to see the Loan Estimate (LE) that sets out all the fees.
And – invariably, we find $10,000 of points or origination fees buried in the loan.
We then find out that the loan officer had sold a loan with “no out-of-pocket costs,” meaning that he merely increased the borrower’s loan amount by enough to absorb ALL of the points and nonrecurring closing costs.
The confused borrower, however, thought she was getting a “no cost” loan.
This and similar issues take place so often that I feel compelled to repeat this blog from time to time.
HERE ARE 5 RATE QUOTING TRICKS: