How Bad Can it Be? Very!

Mortgage and Lending with WealthWise Mortgage Planning, a Division of American Pacific Mortgage Corporation NMLS #1850 NMLS 244226

How Bad Can it Be? Very!

sacramento mortgage brokerLast week, I made a quick run to the rather upscale grocery in Roseville to pick up a few things for dinner.  In the bakery section, I spotted a Marion berry cobbler that looked just right for dessert.  I checked the top and all sides of the box but couldn't find the price.  I thought to myself, "How bad can the price be?  It's just a cobbler."  I added the cobbler to my basket and went to the checkout where I swiped my debit card and went on my way.  When I got home, I glanced at my store receipt and the total was much larger than I expected.  Reviewing the items, I found that I had been charged almost $18 for that cobbler!  And I finally found the price tag; it was hidden on the bottom of the box.

"How bad can it be?"  Unfortunately, I see this sentiment in my business as a Sacramento Mortgage Broker.  All too often people applying for mortgages don't pay close attention to the written quote they are given.  Perhaps they think that the recent "mortgage meltdown" has run the bad mortgage brokers out of business.  I believed that...until several of my customers showed me quotes given them by other mortgage brokers.  Just like the price tag on that cobbler, there were some shocking numbers that had been hidden.

One loan officer had quoted a high interest rate that netted him a large commission then charged my client thousands of dollars in fees to bring the rate down.

Another client's quote showed a very low rate at no extra charge to my client.  The loan officer claimed to have locked that low rate, but the quote didn't show any lender name.  When it came time to close the loan, my client got that nice low rate but had to pay a substantial amount in fees to get it.  Fees that hadn't been included in the quote.

Another client told me that he had been given a great looking quote for a mortgage that the loan officer claimed included property tax and insurance impounds.  A few months after he got his loan, my client received a property tax bill he was not expecting and had not budgeted for.

Sadly, crooks are still around in the mortgage business.  Take it from a Sacramento Mortgage Broker who sees it!

Comments (3)

Mark Haury

Sorry to hear you were charged so much for your cobbler Ed. I'm a marionberry grower who is quitting the business after growing since 1978 and my father before me. Why? Not enough profit for the hard work, risk, and heartache that grows into growing berries. Thought you should know.

Mark Haury Haury Farms Salem, OR

Nov 18, 2008 03:16 AM
Ed Gillespie

Mark, I'm very sorry to hear about your situation.  Do you have any plans as to what you would like to pursue next?  I know how hard it is getting started in something new after doing something for as long as you have. 

You have my best wishes and prayers behind you! and please feel free to let me know what happens next for you.


Nov 18, 2008 03:25 AM
Mark Haury

Ed, Thanks for your concern. I'm not quitting farming completely, just switching all my berry acres to hazelnuts. I've been raising them also. Still it's hard to trade one long term crop for another. But if I had to stop farming altogether, now that would be extemly frustrating. Much worse than pulling out perfectly good berry fields and waiting years for any return on my new crop.

Thanks again and good luck to you. Mark

Nov 21, 2008 03:04 AM