Criminal
05-04-2004, 07:35 PM
A while back I posted about problems I was having with a dirty rotton mortgage broker who lured me into signing an "application" which was in truth a contract in which I promised to pay the company whether or not I got the mortgage. The end result was that I was taken to court and forced to pay $3000. So for that reason I decided to post some things I learned from the experience.
1) Be very careful who you do business with. Read better business bureau reports on businesses before working with them. The BBB give good advice, even though they don't do a goddam thing about complaints. While the National Association of Mortgage Brokers (NAMB) are a bunch of snakes who won't do anything to dishonest people in their business and all stick together, it won't hurt to check out their website and read up on how to protect yourself.
2) Avoid doing business with brokers or bankers recommended by building contractors or realitors. Chances are they are getting kickbacks from the mortgage company and will screw you big time.
3) Before seeing anyone in the business, get your own credit report. Read it thoroughly and resolve any disputes before seeing anyone. Bring your report to the banker or broker. It will save you lots of money so that they will not have to run any report.
4) Find out the interest rates. Call around and talk to lots of people.
5) Before you sign any mortgage applications be sure that you talk to lots of people first. Remember that large numbers of inquiries on your credit can look bad for you.
6) Don't be afraid to demand provisions from your mortgage banker or broker. If they say they can't do something then tell them you will be back. Show them that you are a wise consumer and will not be pushed or bullied.
7) Don't be afraid to ask a broker to add things to a written contract. Particularly when it involves fees paid upfront.
and finally and most importantly
8)
READ READ READ.... every little stinking word on the contract. If the broker tells you what its supposed to be that you are signing, just ignore him and read anyway. If he or she tells you that there is little time and you can read it later then tell them you will sign it later when they give you enough time to read the documents.
If there is any word or clause that you don't like than tell them to scratch it out. They may be pissed but its better to confront them there and then to have to see them in a court of law.
1) Be very careful who you do business with. Read better business bureau reports on businesses before working with them. The BBB give good advice, even though they don't do a goddam thing about complaints. While the National Association of Mortgage Brokers (NAMB) are a bunch of snakes who won't do anything to dishonest people in their business and all stick together, it won't hurt to check out their website and read up on how to protect yourself.
2) Avoid doing business with brokers or bankers recommended by building contractors or realitors. Chances are they are getting kickbacks from the mortgage company and will screw you big time.
3) Before seeing anyone in the business, get your own credit report. Read it thoroughly and resolve any disputes before seeing anyone. Bring your report to the banker or broker. It will save you lots of money so that they will not have to run any report.
4) Find out the interest rates. Call around and talk to lots of people.
5) Before you sign any mortgage applications be sure that you talk to lots of people first. Remember that large numbers of inquiries on your credit can look bad for you.
6) Don't be afraid to demand provisions from your mortgage banker or broker. If they say they can't do something then tell them you will be back. Show them that you are a wise consumer and will not be pushed or bullied.
7) Don't be afraid to ask a broker to add things to a written contract. Particularly when it involves fees paid upfront.
and finally and most importantly
8)
READ READ READ.... every little stinking word on the contract. If the broker tells you what its supposed to be that you are signing, just ignore him and read anyway. If he or she tells you that there is little time and you can read it later then tell them you will sign it later when they give you enough time to read the documents.
If there is any word or clause that you don't like than tell them to scratch it out. They may be pissed but its better to confront them there and then to have to see them in a court of law.