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When good faith estimates go bad!!! Request, no DEMAND a copy of the lock in agreement! Madison Wisconsin, please READ!!

Mortgage and Lending with Funky Quail Vintage

Hello everyone!

Couple of years ago, my father sent me an article from MONEY MAGAZINE that was entitled "When good faith estimates go bad".  It was an awesome article actually, and the reason he sent it to me is because it featured one of my "so called competitors" in Madison, Wisconsin

The article is dated May, 2006, and was written by Ellen McGirt.  YOU SHOULD ALL GOOGLE IT!  It is the best example of why quality mortgage lenders such as our company, and others are still in business, and alot of the reason to blame for WHY we are having problems today with the mortgage industry as a whole!



One advantage OUR company has, is that we are very technology friendly!  Thus, we are able to do 97% of our work over the phone!  This is a HUGE advantage to any customer that is working with any lender in any state! YOU DONT HAVE TO GO INTO THE BANK TO MAKE AN APPLICATION!!!!!   You dont have to leave work early, you dont have to take time away from your family!  Just call!  Shop, listen and learn!  While I understand the purpose behind a "face to face" meeting, it really isn't necessary anymore!  Use the two hours of your life to read to your kids,

Mortgage lenders, banks, and the like are up to their wazoos in disclosures!  Mainly because someone, somewhere, did something wrong, and someone sued someone over something that someone did wrong!  Wow...Oh, by the way, in case you didnt hear me before, YOU DONT HAVE TO GO INTO THE BANK TO MAKE AN APPLICATION! 

The advantage to doing things over the phone, allow you to be EMAILED YOUR DISCLOSURES!  That way, under NO pressure, you can review them, write your questions down that were not covered in the initial meetings, and ask them down the line!  Makes it clear and straightforward! Personally, I think people are sick and tired of having people trying to sell them snake oil!  Yes,  I do understand that it takes a little bit of the "personal touch" out of things, but honestly, it puts the power back in your hands!  I also realize this does not apply to everyone, but quite frankly, I believe that people just have been trained like lemmings to think this is how you do things!  Probably how grandpa did it , your dad did it, and now you, or your kids do it!

The power of the internet never ceases to amaze me!  Use it!  Get your disclosures emailed to you!!!  Best part is, if done right, the numbers at the beginning will match the numbers at the end!  TOO MANY TIMES I have heard stories of rates, closing costs, and fees, changing DRASTICALLY from when they were initially disclosed, to what they were at the closing table!  At the table you the consumer have lost the "power".  A good Loan Officer will provide you with the following:

1.  Initial Disclosures!  These tell you that based on the Best estimate, (that is why they call it a Good Faith Estimate), these are the costs, the fees, the payment , the rate, and what the payment includes!  PLEASE KEEP IN MIND, this is also a "guess" on what the value of the home is based on your current market conditions!

2.  Lender SHOULD provide you with a copy of the LOCK AGREEMENT!  If it is TRULY LOCKED, this should not be a problem!

3.  Look everything over very closely, including the Loan Application, as well as the TRUTH IN LENDING DISCLOSURE!  These forms are highly technical, so PLEASE ASK QUESTIONS!  Note:  If you see a significant difference between the rate the person is telling you, and the APR on the TRUTH IN LENDING DISCLOSURE, ASK WHY!???? This is primarily used to compare loan offers!  But, can also yield hidden fees, and their structure!

4.  Lastly, make sure that a day or two before you go to closing that the lender goes BACK OVER the closing costs, fees, payment, interest rate, when the first payment is due, and WHERE YOU WILL BE MAILING your first payment!


Professional Lenders do all of these things naturally!  Inexperience is NOT what you need when buying or refinancing a home! 

If you ever want an un-interested 3rd party to answer a question, or look over a document, email me, or call me directly!  I dont care what state you are in, or where you are located!  I will be happy to give you my 2cents! 

Simply put, I want to help people!  Thanks and good luck!   Darin  Darin@osmwi.com  608-592-2227

"Your Lender for Life"

One Source Mortgage, LLC


Rob Kelly
RE/MAX Alliance - Louisville, CO
Louisville Colorado Realtor

The lock agreement always seems shaky, too often I've heard "i know we locked, but now are unable to get that rate"


Thanks for posting this update!


Rob Kelly



Dec 11, 2008 10:22 AM
Darin Osenberg
Funky Quail Vintage - Nashville, TN

You got it Rob!

My father retired from Real-estate in Colorado, and prior to that was in the insurance industry for 30 years!  That coupled with me being in the mortgage business for about 20+ years, I have gotten a good taste of what tastes bad!  :)  Anyway, apprecite the comments! 

Love Remax btw!  Great company!


Dec 11, 2008 10:25 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Darin....  wonder what prompt this post today... ;o)  The situation with Lewis?  Not that I love when stuff like that happens to my fellow loan officers and or friends, but it's always something that we can learn from and grow from... you make some excellent points.

And about not meeting in person... of the 40 or so applications that I took in 2008, I only met with 3 of them face to face... 80% of my business in 2008 was out of my state of NJ...

Overall...the good faith estimate is one of the biggest shams in a way, when I talk to clients that have talked to a lender, who never gave them a GFE.. Recently, I got a client in CT who at one point with their previous LO, asked them for a GFE for 5 days in a row before they got one..  my thing that I tell borrowers, once you are qualified by the LO, you should have a GFE in less than 10 minutes... I will be writing about that this weekend. Again, good job here...

jeff belonger

Dec 11, 2008 03:54 PM
DeAndrea "Dee Dee" Jones
Samson Properties - Manassas, VA

Sounds like you are very good to your clients.  You are right there is nothing worse then going to closing and seeing a dramatically different settlement statement.

Dec 15, 2008 05:28 AM