I tell my buyers that they need to tell me everything, even if it seems small, because if I don't know, it could cost them the house they are trying to buy. Well, this client has told me, "I've read enough of your posts to know that you are going to write about me and this situation, and please do, so someone else can learn from my mistake!"
The situation is this person was trying to buy a condo that was non-warrantable, because it was a condo conversion project and they were not quite at the 50% sales mark yet. So, I gave this client a list of three different lenders that I knew that could do a non-warrantable title loan. But, a shark of a mortgage broker promised her that he could "GET AROUND" the non-warrantability issue and give her a .25 % lower interest rate on the loan.
She bought it hook, line, and sinker and I found out three weeks later when title asked why they didn't have anything from the lender. I called the lender she told me she was going with and she said she hadn't signed anything still. So, I called my buyer and she told me what was up. I told her that I promised if this person "GOT AROUND" the issue, it was probably illegal and, more than likely, would call in a few weeks saying, sorry I was wrong and I can't save you any money.
But, more importantly, if the interest rates go up, you are going to have to pay more rather than less, well guess what happened? She waited and waited and the other broker called and said he couldn't do it, and because she didn't lock when I told her too, she is now paying 6.75% instead of the 6.25% that she would have if she had just listened to me a few weeks ago, or kept me in the loop that she was talking to another mortgage broker. I could have advised her that this was going to happen and helped her with her decision.
So, if you have a Realtor that you trust, please listen to them. If you have something that is of concern to you, please tell them so they can help you. We really are here to help!
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
Clipart courtesy of srbichara
;)
;)
Good story Todd. A buyer will be much better served going with the referral of a trusted advisor, as opposed to flipping thru the yellow pages, or worse yet, the internet. Not only will they get a better deal in the vast majority of cases, their loan has a much better chance of actually closing!
Buyers also need to realize that rates (particularly in this market) are ever changing. A rate quoted on Monday may not be valid on Tuesday.