When shopping around for a mortgage rate and program, if it sounds too good to be true it probably is. Just like anything else. By fault I analysis everything. When I have a client that is looking to refinance or purchase a home, with an unusual situation I will try to come up with every possible situation or problem that could occur.
I don't have a problem with a client shopping me with another company, but sometimes I find that they return with off the wall information. Sometimes programs that no longer exist are offered by other lenders, or rates that are untouchable by any lender. This usually ends up as the bait and switch. Nothing fries my rear end more than the bait and switch.
For instance: A client is looking to purchase a home with very little money down, and this client is self employed. He is looking for a stated income mortgagewith credit scores at about 680. After talking with a couple of other mortgage lenders, my client is offered the possibility of purchasing the home with no money down. 100% financing as a stated 30 year fixed, with 6% credit from the seller. This program left with the sub-prime melt down! When the stuff hit the fan 100% stated programs went with it. I assured my client that this was not an option, but when you hear what you want to hear, you go for that gold!
Its like going to the doctor you have had for many years, he tells you you have cancer. You go for a second opinion, that doctor tells you that you do NOT have cancer and you will be fine. The third opinion gives you the same news as the first doctor, but you choose to believe doctor number 2 because that is what you wanted to hear.
When you decide to go for the option that seems too good to be true, you need to hold on tight, 
the ride will be bumpy. And in the end the roller-coaster ride may not be worth it.
Working with a trusted Mortgage Professional is important today with all the changes in loan programs. Today you have to provide more documentation, have better credit scores, have some money to put down. Long gone are the days of fogging the mirror to obtain a loan.
This is not to say that 100% programs are not available, they are under certain circumstances and criteria.
In the end, my client did meet with the lender offering 100% financing for a purchase on a stated income loan with a 6% seller credit. I received a call later that day, that lender couldn't offer it either. I'm just glad he was told before they got started instead of just prior to closing. But just getting him in the door seemed to be the objective, hoping he'd stay.
It may not be what you want to hear, but it will be what is available for you!
Kim Murphy| 1st Advantage Mortgage
Providing Home loans for over 10 years
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