Buyer BEWARE: Mortgage Loan: Terms Change At Signing
Buyers told one thing at PreApproval and PreQualifying appointment— for instance, 5% interest on 2nd loan.
At signing/closing of transaction they discover the 2nd is actually at 8%, not 5%.
You can call this Bait-and-Switch or you can call this MORTGAGE FRAUD.
The buyer’s are caught between a rock and a hard place. They can refusing to close all together, or hold up closing to try and iron it all out, or accept the transaction with the higher interest rate.
Meanwhile the buyer’s furniture is in the moving van, their rental is already sublet, and the seller’s furniture is in the moving van and the home has been cleaned spotless, ready for the new buyers.
Now the buyer’s can’t get any lower interest rate than that anywhere else so there is no point in holding up closing for two weeks to run it through another mortgage company, but that particular loan officer gets the business. (They do this to outshine all the other competition at the pre-approval/pre-qualifying period several weeks/months prior. Remember, IF IT SEEMS TOO GOOD TO BE TRUE… IT IS.)
This makes me REALLY mad. Hope it makes you mad too!
How to make sure this doesn’t happen to you:
BE sure to get a GFE (Good Faith Estimate from your loan officer in advance). Make sure the loan and rate you are quoted is in black and white and you keep it in your possession.
Review it with other reputable loan officers as you shop for your mortgage officer. They will be QUICK to point out that it is TOOOOOOO Good to be True.
Have your real estate broker/agent advise the loan officer that they report suspicious bait- and- switch or fraudulent behavior (let them be the ‘Bad Cop’ for you).
I always tell my clients, “Listen, I’ve got your back. I have a very low tolerance for this behavior.”
Warmest, Julie Hutton
‘I would love to get one of your friends or family into their dream home!
Please call me if you know of anyone who it thinking of buying or selling a home.
I PROMISE to make you proud!’ – Julie
Sales & Marketing Specialist
Coldwell Banker Bain
8525 120th Ave NE, Ste 100
Kirkland, WA 98033