Did you know that many mortgage companies say they can give you a loan at a great rate - but can they really? There are some companies that have bad reputations for saying just that - but when it comes down to it - they will assuredly give you a denial letter at the very last second shattering your dreams to buy that very home you found! -- And sometimes just days before closing on it!

It’s not about rates. It’s about what your credit score, credit, and payment history can do for you. Rates play a smaller role in your application for a mortgage than you think.

Buyers, who even after warnings about particular companies that choose to still use the company they were warned about, can end up getting the "dreaded" denial letter or even worse end up participating in bank fraud without even knowing it. What are the signs?

  1. The company does not provide you with an approval letter (Not a pre-approval or pre-qualification letter).
  2. If they are a mortgage broker shopping you to many investors/lenders they will not tell you specifically which lender or bank they will use.
  3. The company or broker does not provide you with a "Good Faith Estimate". This will provide you with the approximate closing costs, the approximate payment and interest rate and other information you want to know about.
  4. The company will not reveal the closing costs you have to pay until closing day - which can really be tough for you to come up with that money last minute with no advance notice.
  5. The company does not provide you with a "true" commitment letter. In other words, they will not have a lender or investor in place, because they are still shopping you to the pool of lenders. Therefore, they will include phrases like "subject to final approval of the lender or investor". This sentence can still pull the rug right out from under you - because they have not done all the leg work to complete the loan process like they were supposed to. And watch out when they cannot meet the mortgage commitment date on your contract and ask for an extension of the date by just a few days. When you get the extension, you get a denial letter by that extension date almost always with these types of companies.

Do you really want to pay for an appraisal and a home inspection, only to find out you never had a chance to be approved for a loan to begin with? I don’t think so. It can be a very disappointing process. What’s more, companies such as these will tell you what you want to hear, tell you everything is all set, and then boom…..no house.

How can you know if you are working with a reliable company?

Places like the Better Business Bureau, the Banking Commission, and your Realtor. Your Realtor can provide a list of mortgage companies and names of brokers that are trustworthy and which companies you should avoid so you can have a smooth transaction and move right into your new home………hassle and trouble free.

Annette D'Antoni

Annette D'Antoni has been a Sales Associate of Century 21 Hughes & Carey located at 1214 Kempton Street, New Bedford for over 6 years specializing in residential & commercial real estate.

Annette loves working with people and goes the extra mile to be sure that her Sellers and Buyers are very happy with their real estate experience. Annette's professionalism, honesty and integrity combined with experience provide ultimate service! When she says,"I work hard so you don't have to", she means it!

You can read more about Annette D'Antoni on her web page - HERE

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