Everyone wants low fees and low interest rates when they are
shopping for a mortgage to purchase a home or refinance their
property. But be careful that the loan officer you are speaking
to is not low-balling the rate or fees they are offering.
The definition of low-ball is “to understate or underestimate a cost
deliberately”. Some loan officers do this on a regular basis to make
their offer more attractive than other offers. If you fall for this trap
you may find that the final settlement statement differs significantly
from the Good Faith Estimate that was first provided to you.
Unfortunately many customers will accept the excuses provided to
them for the differences and complete the loan despite the fact that
the fees or interest rate are more than they originally bargained for.
Remember, A Good Faith Estimate is merely an estimate. It is not a
contract. The items on the Good Faith Estimate that are most often
low-balled are the mortgage payoff, the interim interest, the attorney
fees, the title insurance, the tax stamps…and yes, the rate. Do your
due diligence and make sure that the loan officer you are dealing
with is giving you accurate information about the fees that you will
incur with a mortgage proposal.
Posted by Terry Brunner. Terry is a Senior Loan Officer with Horizon
Financial. Terry can be reached toll free @ (877) 627-9211 x150 or
email TBrunner@HorizonFinancial.org. Visit Horizon’s website at www.horizonfinancial.org
