How to Detect a Dishonest Mortgage Loan Officer

How Detect... to A Dishonest Mortgage Loan Officer During the real estate boom of the mid-2000s, one of the most desirable and prolific jobs around was a mortgage broker or loan officer. Plenty of salesmen and women with questionable ethical standards doled out high-risk loans to consumers who were eager to move into their new homes, but hardly aware they were falling into a trap. Congress has since introduced regulations that reign in mortgage fees and prevent predatory loan officers from preying on customers with bad credit. And while that has cleaned out most bad apples from the mortgage industry, there's never a guarantee that a dishonest person won't try to take advantage of you regardless. Here are the red flags. Signs You're Dealing With a Dishonest Loan Officer Watch out if your loan officer tries to: Tempt you with ridiculously low interest rates Fail to provide you with a good faith estimate of closing costs within three days of applying for the loan - as required by The Real Estate Delay the closing of the loan May 2011 "You won't be able to secure a loan with Settlement Procedures Act OPEN 3 5 9 10 anyone else." 11 12 13 17 18 19 20 ONLY Close 24 25 26 2 Mr. Smith's loan by O/26/200 1.25%!!! Good Faj" The eal Estate Serement Pocedures Act Charge prepayment penalties on a conventional fixed-rate mortgage Loan S15 SIN I Application Refuse to give you Are extremely difficult to copies of documents get a hold of and rarely you previously signed return your calls Ask you to sign the loan and fill in the information at a later date 1 sign over my life Encourage you to lie on your loan application, usually asking you to fudge financial information to inflate your net worth Signs You're Dealing With an Honest Loan Officer A good loan officer who fights for your best interests is worth his/her weight in gold. An honest loan officer will: Educate you on the ins and outs of the loan "I provide you with a Good Faith application process Estimate within 3 business days of you signing the loan application." WE OFFER COMPETITIVE BUT NOT RIDICULOUSLY LOW OR HIGH RATES AND TERMS Put you at ease, providing knowledgeable answers to all your questions Be willing to disagree with you or tell you things that may not make you happy Keep the application loàn status: complete process moving along quickly and smoothly Be quick to answer your calls and communicate regularly, keeping you up to date Loan on the progress of your loan application. Application. Be proactive in securing all necessary documents to process the loan Sources: credit sesame www.bankrate.com BY www.trulia.com www.creditsesame.com