You have to be very careful these days when inquiring about financing on the internet. There are many negative outcomes that can result from working with a “faceless” lender. Continue reading below to learn some things you should look for and how we saved a client from disaster.........
A few weeks ago we funded a loan for some clients after rescuing them from an internet lender (I won’t mention the specific lender as that isn't relevant for this article). They decided to use this internet lender for their FHA refinance after being promised unrealistic terms and timeframes. The problem was they were acquiring this FHA refinance just prior to the FHA making a major change with mortgage insurance (we wrote a prior blog on these changes...click here to access that article). This meant a timely closing was critical, or they would end up losing the benefits of their refinance by having permanent mortgage insurance (again, see the above blog article link for more on this).
When they recognized things were taking too long with this lender, they inquired further via phone calls and emails to find out what was going on. Of course they received no response because they had no specific contact to reference. Luckily, I just happened to contact them right around this time. They expressed their discontent and concern to me. After reviewing their loan in process, I recognized there were also hidden fees that weren't discussed. So not only were they going to get hit with permanent mortgage insurance because the lender wasn't completing their loan in a timely fashion, they were also going to have over $4,000 in fees they weren't aware of. So we came in and saved the day by funding their loan in less than 30 days; and we did so with no fees and no permanent mortgage insurance.
THE LESSON: Work with somebody you trust when dealing with your personal finances. We are not saying internet lenders are all bad. But you need to make sure you get a personal contact if you are going to inquire about financing through an internet lender. You need to work with an individual representative...and preferably somebody you feel comfortable you can trust. Not only is your transaction at stake, but you also can’t afford to have your personal information floating around in a day and age when identity theft is so common.
Contact us to work with somebody you can trust. We will give you the personal attention and communication you deserve!
Does anybody have horror stories about working with a “faceless” lender? If so, please comment below!