Consumer AffairsPost(Phony Mortgage Rate Quote)

I just had this e-mailed to me from a friend in the business, thought it might be of interest to some.

Titled Phony Mortgage Rate Quotes

Many unscupulous Lenders and brokers offer mortgage rates that don't exist. The more attractive the quote, the more likely it may be phony--- Meaning that the lender or brokerhas no intention of honoring it.

The old saying "If it sounds too good to be true, it probably is" Really holds true herewith recieving mortgage rate quotes. if you recieve a quotefrom a lender that is considerably lower than everyone else, there is probably a reason for it. Most likely you are being lied to just get your business in the door and then the rate will be switched on you at closing. The other common reason for this false rate quote could be that the mortgage broker is new to the industry and doesn't understand how to properly price your mortgage loan yet. This is common especially in such a fast growing industry like the mortgage industry. People are very poorly trained and lack the necessary knowledge to provide quality service in the mortgage and real estate industries. Either way you should use extreme caution in this situation.

Of course if you want to obtain the best possible rate, you should base your decision on whom to work with on more than just the interest rate. You should also base your decision on whom you feel most comfortable with and who you feel wil be able to provide you with the level of service you deserve.

If you've been recieving rate quotes that are similar from different brokers or companies, and one seems much lower in all likelihood you are getting a sham rate quote. Do yourself a favor and don't trust your most important asset with that company.

Rate quotes in general mean very little. Until an application has been completed, credit checked, and the scenario has been approved through an automated underwriting engine and even then the rate can still change. If you are purchasing a home, the cost of terminating the process with one lender and staring over with another becomes increasingly high as you move towards closing on your home. Phony Mortgage Rate Quotes often end up in "Bait and Switch" Deals. The homeowner is offered a too good to be true deal (Being Baited) and then at closing, they recieve a much higher rate and undesirable terms( The Switch).

I thought it was a great article.

Good Luck to everyone and good reading to all,

Tom