Rainmaker Fan Mail [Q&A Series] Oct. 2009!
As a part of our new Fan Mail Q&A Series, we invited Dave Tang; a Realtor & Mortgage Consultant with Portfolio Lending.
“With all the radio ads for low interest mortgage rates…How  does one discern which are legit and which ones are borderline  fraudulent? “
-Tim
Well Tim…. I am always concerned about ads that just feature a rate  because there is so much room for bait and switch. Since most  people today are interested in a 30 year fixed rate mortgage, the  questions I would always ask are:
-Is this a 30 year fixed rate mortgage?
-Is there a pre-payment penalty?
-What is the maximum loan amount available for this loan?
-What is the APR? [assumes you already know the advertised  rate]
-How long is this rate locked for? Can I get that in writing when I lock?
-What are the points, fees and closing costs associated with this loan?
-What is the loan to value required for this loan?
-What is the credit score required to obtain this loan?
-[If applicable] Is this rate valid on a condo or townhome – or just a single family home?
-Can I get a Good Faith Estimate showing the type of loan, rate, and all closing costs?
This is the info you need to really compare loans across the board – if you can’t get acceptable answers and a written Good Faith Estimate, then you really are at the mercy of the person on the other end of the telephone or keyboard.
I have had numerous clients who have gone down the path with a ‘too good to be true’ rate only to find out what they thought they were getting and what they did get were two completely different thing.
Be especially careful on a purchase transaction to work with someone trustworthy – as there are a lot of mortgage brokers who know that by the time you are signing your loan docs to close escrow, it is just too late to go anywhere else!
Congrats to Tim; Great question! You’ve won a free gift card to the store of you’re choice!
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