Are you left in the dark about your mortgage payment?

Are you upset with the mortgage industry? Is the problem that some of these loan programs are risky and fall apart at the end?  Or can it be for the fact that you are left in the dark when it comes to certain things that you should be told upfront about?  How about knowing what your payment is and not just the fact that you are approved for that loan amount !!!!!  Buying a home can be intense.
 
I received an e-mail the other day from Ravi Shah who is a realtor working in Moorestown, New Jersey. Ravi referred me to a client who was already pre-qualified by another lender, but the client couldn't remember the name of the lender.

I finally get a hold of the client, introduce myself, and ask him if he has about 20 minutes so I can ask him 3 to 4 simple questions. Here was my problem when asking this in the past. The client would say ..."That's too much time. The last few lenders that I spoke to only took 5 to 10 minutes."  Me? I am sorry, I need more time than that in order to determine correctly what I can do for you. I need to know your goals.  "Okay, ask..."

1. How is your credit?  He tells me 700+...... (I still ran his credit later) And he only makes $15,000 a year. He is on disability and would need a No Doc loan. But he is unaware of this.
2. How much cash do you have to work with?  (he sold his home last fall and walked away with $50,000, but he only wants to use about $20,000)
3. Is there a certain price that you are interested in? (I was approved for $200,000)
4. Okay, lastly, how much of a payment would you like to carry monthly, worst case? (Well, about $700/month)

Okay sir, we have a problem here. He asks me why?  I tell him that there is only one way to get to that payment and based on your income information, this would not be your best loan program. I asked him if they told him what his payment would be monthly. He said NO.  Sir, it sounds like they just told you enough to catch your interest.

Conclusion :  I am not here to bash any lender or loan officer. Gee, I have been one for almost 15 years now and still love it. But many of these loan officers and lenders will tell you what you want to here. Don't be afraid if you ever run into any problem as your loan is being processed, if things change during the process, or when you finally get to settlement that your terms have changed or the costs have changed. You have the right to complain as a consumer.

 

For more comments in regards to this topic, please Purchase Price vs Payment.    what's missing?????

Jeff Belonger     National Future Mortgage
888-835-1663    jbelonger@nationalfuturemortgage.com

Comments

[Mike]

This is very good. I went through this when I bought my first house. It was such an intense time, that they had me not thinking of the payment, but just the words "you are approved". Things changed at the end and the payment became an issue. Thanks for sharing this.

[Stephanie Edwards-Musa]

Jeff, this is a great post. Consumers are left in the dark much too often. I think it's great you look after your clients in that way!

[Jeff Belonger]

Mike...... sorry that you had to go through with this. But thanks for your feedback, because my whole purpose here is to educate consumers. Help them truly understand the process and not just a bunch of promises. And when these promises are broken, how to handle them…. and not just cave into the lender and accept their new terms. And for the fact that some loan officer’s leave certain things out, until you ask them. That’s not right… no matter who you speak to, there are always about 5 to 6 things that they should go over with you and give you figures for.

Overall…. Thanks for the compliment and for your feedback.

Stephanie...... Thank you very much for those kinds words. I tell people, I am not perfect, but I certainly try. Taking this seriously, treating people the same way that I would want to be treated. Thanks again.

[Mike Mueller]

Jeff -
Wonderful, down to earth explanation, of something that happens all to often.

You are the Man!

[Jeff Belonger]

Mike M. ....
Thanks for the very kind words and for stopping by. I just believe in educating the client and not the bait and switch tactics that other loan officers use. Or the loan officer that doesn't ask the client the appropriate questions. Thanks again.