5 Promises Bad Mortgage Lenders Make...But Can’t

5 Promises Bad Mortgage Lenders Make...But Can’t

Mortgage LenderWhen you're ready to get a mortgage, you want to make sure you're getting the best possible deal: amazing rates, low payments, and the other factors that work for you when you close on your home. Unfortunately, many mortgage lenders will make so-called promises in an effort to lure you in. Then, when you think you've got a great deal, you'll discover that they didn't have the ability to make those promises after all. Before you dive in with your mortgage lender, make sure you're not getting sucked in by these false promises.

Related Blog: Why Should I Avoid Big Box Mortgage Lenders?

Promise #1: "Expert Legal Assistance"

Many mortgage relief organizations will try to draw you in with the promise of "expert legal assistance." Perhaps your mortgage lender is even promising expert legal assistance when it comes to drawing up the contract on your home! Unfortunately, unless your lender has a lawyer on the property whose job it is to advise their clients, chances are, you're walking into a scam.

Promise #2: "Mortgage Rates Cut in Half!"

All too many lending agencies take fees from customers up front in the forms of processing fees or advisement fees. They promise that they'll re-negotiate with lenders, removing some of the burden of your current mortgage and providing you with financial freedom. There's just one problem: many of the companies interested in providing this service are scamming you completely. Be wary of any promise that seems too good to be true. Also, keep in mind that reputable lenders typically don't ask for extensive processing fees up front.

Promise #3: "You Automatically Qualify!"

When you're working with a mortgage lender, you need to know up front how much money you qualify for. This simple amount can transform your plans or shape the type or size of house that you're looking for, regardless of whether you're looking for a home to live in or picking up an additional house to fix up and flip. Unfortunately, many lenders are trying to suck you in with promises that exceed your dreams, only to turn around and jerk away those promises or substitute unexpected terms--higher interest rates; shorter repayment periods--when you least expect them. Keep in mind that any lender promising automatic qualification likely offers poorer terms than you can expect from other lenders.

Promise #4: "The Best Terms in the Industry!"

Always be wary of anyone who makes a promise about specific terms when it's not put in writing--and don't let yourself make plans based on those numbers until you've seen the paperwork. The bait-and-switch tactic is common in many industries, but it's even more frustrating when you're sitting down to finance the home of your dreams, only to discover that just before the contract is signed, you're being given much less favorable terms than you expected. Take the time to talk through your exact terms with your lender long before closing day and make sure that you get everything in writing.

Promise #5: "Fast Closing!"

While mortgage lenders can help speed along the closing process, they can't promise that you'll be able to close with 30 days, or 60 days, on your home. Plenty of things can hold up the process, and it's important to realize that not all of them are within their control. Waiting for a single piece of paperwork can bring the entire process to a screeching halt, making it critical that you build extra time into your closing timeline.

 

False promises are frustrating in any industry, but it can be heartbreaking when you discover that you aren't able to purchase the home of your dreams due to the false promises of a mortgage lender. If you need a lender who will offer you the truth, without false promises or other qualifications, contact us. At Lend Smart Mortgage, we're dedicated to providing high-quality service to all of our clients.

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