Mortgage Loan Costs
Lender Bait and Switch Practices
I have clients who’ve recently worked with some of my non-preferred lenders, and I found some of their practices to be questionable.
When a buyer starts working with a lender, they’re required to give them a disclosure of all mortgage loan costs so they know their interest rate and estimated closing costs. Throughout the lending process (you may change the rate or loan program you’re looking at), you’ll see subsequent copies of these numbers. Sometimes, though, lenders don’t review these numbers with you, so you need to look very closely and make sure you understand them. The last thing you want to do is get to the closing table and see a numbers that don’t make sense or that you were not expecting.
You should consider your Realtor a trusted resource throughout the process and have them review these documents as well. We do it all the time for our clients. Ask your lender to review these documents with you to make sure you understand them. If anything, you should get to the closing table and be delighted to discover that what you’re supposed to pay is significantly less than what you expected.
“The last thing you want to do is get to the closing table and see a bunch of numbers that don’t make sense.”
So, please check your numbers closely to make sure the lender is not all of a sudden charging fees you weren’t aware of, like a fee to buy down your interest rate.
This is exactly the kind of thing we at Real Estate Experts do to help our clients, so if you’d like to know more about this topic or have any questions, don’t hesitate to contact us. We would be happy to help in any way possible.