In the course of doing business we frequently talk with customers who are very reluctant to believe the straight-forward way we do business. Later we find out that they've fallen victim to a bait-and-switch scheme. There are many variations of mortgage financing bait-and-switch schemes. Hopefully you will avoid falling in one of these traps by learning about one common form.
We're going fishing!
Have you seen a newspaper ad that read, "3.99% Interest Rate"? That's the idea. The ad says more, but that's all they want you to remember. That, and their phone number. This is the "bait." So you call the loan originator (broker, bank, or another lending institution) and make an appointment to get your "3.99" rate.
The bait has done its job. You, their new customer, are in the door and have filled out an application. Isn't that a lovely office? A nice woman offers you coffee or a soft drink. You feel great. This is how they set the hook. While you're filling out an application you keep remembering that sign that said 3.99%. No one has told you don't qualify for that rate. In fact, only a select few can qualify for that loan program. But they don't tell you much of anything other than they need to order your appraisal that you'll need to pay for it.
After some additional pleasantries, you are told they will be in touch. So you go home feeling great about life. A few days later, you call back to check on your refinance. That's when they tell you the bad news. You don't qualify for that rate. In fact, you barely qualify for a loan at all. Right now, they have a special promotion, and if you act now they can fit you into the loan program. This is the "switch." You agree in a hurry, and rush right down with your required financial documents in hand, all because you've been told that this is the only program that will work for you. Unfortunately, they failed to mention the steep prepayment penalty or the high interest rate. Those surprises will be sprung on you at the closing table, after your bags are packed, and the movers are backing into your driveway. When it's too late to change anything.
Don't do business with unethical mortgage brokers, We have a better way.
There is a better way, and you've found it. You've reached this website. It's filled with information about mortgages. We don't make promises we can't deliver. The experience is completely different. First, we provide you with ample information here on our site before you decide to apply. After you look around and digest some of the information, you decide that you'd like to find out more. Now take the first step. Fill out an application. That's a good thing, but you also need to follow through and order your credit report.
You may already know your credit score. That's helpful, but scores change every day. With three separate credit reporting agencies we need to know all your scores, not just one. Besides, there are more than just credit scores on a credit report. It is this other information that sometimes will make a difference to whether or not you qualify for a loan. For example, many times there will be another person with the same name on your report. This person's credit history may be pulling down your score. See Credit Scores for lots of helpful information.
With the application and credit report we have a nearly complete picture. You also have an opportunity to provide us with more specific information on the application in the "Situation" text box.
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Once we do an initial review of your application we'll contact you at the time you specify is most convenient on your application. When we call, we'll get to know you and listen to your specific needs because we consider you to be more than just numbers and words in a file. You are a living, breathing person with challenges and responsibilities. You took that leap of faith and provided us with your financial information. Our job is to become your financial advisor. Our goal is to offer you the best of everything--from service to rates.
Here at Lightning Mortgage, we have hundreds of loan programs. We are licensed mortgage brokers who run interference with these many lenders for you. It is our job to find the best loans that meets your specific needs. If there are several, we'll provide you with choices and options. You are the decision maker. Our role is to make you aware of your options and to advise you. With that said, if there is a 3.99% interest rate loan that you qualified for based on your credit history and other financial information, we'd be happy to offer it to you.
Your interest rate is based on several factors. Mortgage (or rental) payment history is very important. You must continue to keep your mortgage paid until your new loan closes and funds. Otherwise, your credit rating will suffer. In fact, we ask you to sign a document called The Ten Commandments Of Mortgage Lending at the beginning of the financing process. It lists ten items that can and will cause your loan to be in jeopardy if not followed.
If you like our philosophy and appreciate doing business with a company that will treat you with respect, give you honest answers, and be upfront with you, then please apply today. If you have been a victim of a bait-and-switch mortgage scheme and would like to tell us your story, please tell us about it.