I know that we are in a society that has information buzzing around like bees around honey. But I would have thought that there would be less people in the mortgage business or in real estate giving out false information or misleading information. I thought because of the lack of business for so many, that these people would have left. Or are these same people hanging onto a thread, giving out misleading or wrong information, hoping to hang onto a client. Hoping that they can close this person under false pretenses, before they happen upon the truth.
Just the other day, I had a consumer contact me from my blogs. He was told that credit scores won't matter in 2 weeks because FHA will be buying mortgages. Huh? Say what? Maybe the government will step in sometime down the road. But this is not true. Now, this client might wait for the 2 weeks to find out. And with rates rising, this could hurt him in 2 weeks.
I had a client yesterday tell me that a lender that she was speaking to could help her buy a home. She has 505 credit scores and he said that he would do a rapid rescore which would take 3 to 5 days. But he didn't explain to her that this was for the rescore and not for her credit scores to be raised to 580 in 3 to 5 days. I asked her what kind of rate that he gave her. She said, "he said it would be a good rate." Huh? What might seem good from him, might not be good for you. She also had some 30 days on her credit report just in the last 2 months. This same lender didn't ask her about them, what the reasons were. People.....no wonder people don't go to closing on time or at all. These are some red flags that you might want to read about : Consumers need to be aware of these Red Flags !!!!!
I closed 3 loans in April that had gone to other lenders, who were promised mortgages. Not one of them closed with their original lenders. They were not only misled and lied to, but I was able to lower one of the clients rate from 7.5% to 6.5%.
Lastly, I am getting tired of lenders advertising 100% financing with FHA loans. Yes, I can get you into a home with little or no money out of your pocket. But that is with the help of a seller assistance and with the help of a down payment assistance program. But FHA doesn't allow for 100% financing. This is extremely misleading.
Overall..... I guess it's too easy to tell a client that they are qualified or approved. But without knowing what you, the loan officer is doing, is a huge problem. I thought service in itself was bad enough, but now misleading and wrong information? It's always been out there, but it seems more now than ever before.
My question to everyone out there..... Will it get worse before it gets better? And I am not talking about the market. I am talking about these so-called professionals that basically lie to the consumer. As a consumer, what have you seen or heard? As a realtor or loan officer, what have you seen or heard?
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For all of your mortgage needs and for more information on FHA loans, please go to this link. The FHA Expert
For more information on how you can obtain your dream home, please click here : Mortgage Financing Options
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2008 by Jeff Belonger
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Hmmm, That's what I read the other day here on AR, that as of June 1, low score is OK, and no score is OK...
Get's confusing