False Mortgage Claims

Banks and big mortgage companies advertise claims that are too good to be true. Their offers are not untrue as they need to comply with mortgage marketing laws. However, it is rare anyone can qualify for the offers they claim. Here are some of the most common misleading adverts to look out for.

Claim #1: No Closing Costs/No Fees

If a lender or broker assures you there are no closing costs or fees, there is a catch. Mortgage companies make money from the closing costs and there is no incentive for a company to finance your loan for free. Do not be duped into thinking the lender is saving you money or because you do not see any “closing cost” on the settlement. Mortgage companies have found ways of hiding their fees and those fees will be collected in a roundabout way. The first way the closing costs are hidden is they are rolled into the price of the loan. If the closing costs are included into the loan, you will not only pay for the closing costs, but you will end up paying interest on it as well! If the company does absorb the closing costs, they will recuperate the initial loss by charging a higher interest rate. In short, “no closing costs/no fees” claim is a gimmick. Be inquisitive and take your time to calculate whether paying closing costs upfront or over the course of the loan is best for you.

Claim #2: Interest Rates Are Too Good to Be True

The Federal Reserve sets the interest rates. Then there are secondary factors that will determine your specific interest rate according to the lender’s policies. Bigger corporations do not mean better interest rates, but they market interest rates that are extremely low. TOO low. Beware of being hooked in with an unrealistic interest rate. The interest rates that are advertised are near impossible for most borrowers to get. Even the perfect candidate who meets all the requirements may only pre-qualify before additional criteria are brought to attention. If you have bad credit, no down payment, and other unfavorable traits, do not expect the teaser rates to be the rate you get. Interest rates can be bought down, but only to a certain percentage. You will most likely pay out of pocket to lower the interest rate. The most important thing when you speak with a lender or broker is be honest about what you can and cannot afford.

Claim #3: Bad Credit Is Acceptable

Credit is the single most crucial factor in getting approved for a loan. People with bad credit are often labeled as high-risk. Banks and lenders will not extend a loan to those who potentially cannot repay them. If you have bad credit and there is a bank or mortgage company that strongly guarantees to offer you a fair mortgage, be suspicious. They may approve you for a loan with ludicrous interest rates and exorbitant fees which may put you in greater financial trouble. Remember that you will be putting your home up as collateral. If you fall back on payments due to the disproportionately high interest rate, you will not only hurt your credit even more, but you will be soon facing foreclosure.

Do not be victim to mortgage fraud. Get the proper tools and resources to find the best mortgage for you. Finding a lender or broker who will consider your situation over their own is rare. But at MortgageRefiPros.com, our experts have the intention of informing and educating you about your mortgage options. We are conscientious and respectful of your needs. Learn more about our fair rates and offers at 855-990-7283.

False Mortgage Claims

Banks and big mortgage companies advertise claims that are too good to be true. Their offers are not untrue as they need to comply with mortgage marketing laws. However, it is rare anyone can qualify for the offers they claim. Here are some of the most common misleading adverts to look out for.

Claim #1: No Closing Costs/No Fees

If a lender or broker assures you there are no closing costs or fees, there is a catch. Mortgage companies make money from the closing costs and there is no incentive for a company to finance your loan for free. Do not be duped into thinking the lender is saving you money or because you do not see any “closing cost” on the settlement. Mortgage companies have found ways of hiding their fees and those fees will be collected in a roundabout way. The first way the closing costs are hidden is they are rolled into the price of the loan. If the closing costs are included into the loan, you will not only pay for the closing costs, but you will end up paying interest on it as well! If the company does absorb the closing costs, they will recuperate the initial loss by charging a higher interest rate. In short, “no closing costs/no fees” claim is a gimmick. Be inquisitive and take your time to calculate whether paying closing costs upfront or over the course of the loan is best for you.

Claim #2: Interest Rates Are Too Good to Be True

The Federal Reserve sets the interest rates. Then there are secondary factors that will determine your specific interest rate according to the lender’s policies. Bigger corporations do not mean better interest rates, but they market interest rates that are extremely low. TOO low. Beware of being hooked in with an unrealistic interest rate. The interest rates that are advertised are near impossible for most borrowers to get. Even the perfect candidate who meets all the requirements may only pre-qualify before additional criteria are brought to attention. If you have bad credit, no down payment, and other unfavorable traits, do not expect the teaser rates to be the rate you get. Interest rates can be bought down, but only to a certain percentage. You will most likely pay out of pocket to lower the interest rate. The most important thing when you speak with a lender or broker is be honest about what you can and cannot afford.

Claim #3: Bad Credit Is Acceptable

Credit is the single most crucial factor in getting approved for a loan. People with bad credit are often labeled as high-risk. Banks and lenders will not extend a loan to those who potentially cannot repay them. If you have bad credit and there is a bank or mortgage company that strongly guarantees to offer you a fair mortgage, be suspicious. They may approve you for a loan with ludicrous interest rates and exorbitant fees which may put you in greater financial trouble. Remember that you will be putting your home up as collateral. If you fall back on payments due to the disproportionately high interest rate, you will not only hurt your credit even more, but you will be soon facing foreclosure.

Do not be victim to mortgage fraud. Get the proper tools and resources to find the best mortgage for you. Finding a lender or broker who will consider your situation over their own is rare. But at MortgageRefiPros.com, our experts have the intention of informing and educating you about your mortgage options. We are conscientious and respectful of your needs. Learn more about our fair rates and offers at 855-990-7283.

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*Disclaimer: The information provided by this site cannot be guaranteed in regards to your individual financial position by MortgageRefiPros.com. All examples are hypothetical for illustrative purposes only. For the most accurate and personalized results, we encourage you to seek advice from one of our qualified financial professionals.

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