***QUESTION:
“Last time I got a mortgage, I shopped and signed up with a lender with a rate 1/4% lower than anyone else. But when I got my loan documents, that 1/4% savings wasn’t there–it was for the same rate everyone else quoted. I don’t think he ever intended to give me that low rate. How can I protect myself from lenders who quote rates they never intend to deliver?”
***ANSWER:
That reminds me of the time a lender confided in me that her company’s “marketing strategy” was to advertise low interest rates to get people to call, but they never actually made the loan at the low advertised rate.
In your situation, it’s possible you didn’t lock in your rate and rates went up during your loan process. But I’m betting you got taken. Here’s two good ways to protect yourself from that happening again:
#1. Call a lender referred by a knowledgeable, reputable source. Check with your financial advisor or a money-savvy friend or relative.
#2. If you shop lenders, ask how long they “lock” the rate they quote. Be sure the “lock” is more than the # of days it’s taking to get a loan (a lock is no good if it expires before you get your loan). Then get that rate locked in. You may have to pay a small premium to lock in your rate.
You can also call me as I know a couple of good, honest lenders.
Or click here…
