Mortgage Tricks
If figured I would offer up some tricks you can play on lenders to get more from them and also the tricks they will most likely play on you.
Tricks that Brokers and Lenders will try on you:
1. Bait and Switch-
Never call a lender based on an ad you saw. They never intend to satisfy the offer they propose or they put such contingences on the offer that no one could ever possibly obtain that offer.
For example: I saw a recent ad for a loan at 5.5% for a 30-year, zero point mortgage. Reading the fine print:
A. You must close the loan in 30-days (The Title alone takes over 40 days to clear in my area.)
B. It must be for a $750,000 mortgage with at least 50% down (How many people have $375,000 laying around).
C. The loan has a $3000 application fee (Are they kidding?)
2. Broker Lock-in Fees
Many brokers will charge their clients a fee to lock in a rate, but never tell the bank. This way the are pocketing close to $1,000 for doing nothing, but charging a fee. Tell all brokers, if the bank requires a lock-in fee, you want it in writing from the bank.