How Dealing with Mortgage Companies Can Be Very Tricky

2007-03-08 10:33:40

( Financial )



A really good mortgage company is hard to find but there are actually a few good ones out there. This is probably because consumers would prefer banks than mortgage companies because banks are more reliable; they are big institutions which possesses a lot of assets. They are also much more establishes and are much more heavily synchronized than mortgage companies.

It’s difficult to find a mortgage company that has been in business for a pretty long time. Most of the mortgage companies are just starting and this is probably because very few of them stay in business very long.

There is an advantage though with dealing with mortgage companies and this is that they really mean and want your business unlike banks. Banks are not very friendly to applicants who experiences problems or applications that present some risk. But then with mortgage companies, they will really work hard to provide you with mortgage loan. And this is only because they will be able to make a lot of money with these loans because they charge very high interest rates and high fees compared with banks.

Another advantage is that mortgage company’s work hard to find possible inventors and banks don’t usually do that. Mortgage companies then will and eventually does find ways to provide you loans that banks would not consider. If no bank will take your business then, proceed to a mortgage company for they might consider you.

Last, mortgage companies have great connections in the mortgage market. They serve as the primary control for acquiring money from private investors.

But of course there are quite a few disadvantages with working with a mortgage company. First is that some mortgage companies are not as decent and highly regarded. This is because they could promise this but convey another thing. There is what we call lowballing. This is when mortgage companies quote this specific rate but then when you are ready to buy, the rate they proposed previously turns out to be higher then the previous one.

Another disadvantage with getting a mortgage company to work for your loan is that they might pull a trick wherein they delay ordering an appraisal up until they already see that your credit clears. You pay for the appraisal when you apply with your application fee but if and when you don’t qualify, the appraisal goes to waste. That would be an extra profit for them.

It is really very risky to deal with mortgage companies. There are the good ones but you really can not avoid dealing with the unethical and unreliable ones. There are online mortgage companies to help you decide but a better solution for this dilemma would be to discuss this with your real estate agent. If you have a good agent, he would be able to know which mortgage companies you can go for and trust and which ones are not so good.


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