A Bad mortgage company

I recently had a real estate sale fall through because of another mortgage companies' poor business practices. They supposedly had pre-qualified this poor customer. The buyer was self employed and has had issues with getting turned down before. So the buyer was nervous whether they could even qualify. So this "supposed 10 year veteran" of this mortgage company gave a pre-approval to buy a home. The buyer knew this "veteran mortgage person". So they trusted them.
When I met with them, I told them a ballpark of how much closing costs should be. I said if you have problems give me a call and I would help them out with the mortgage if I could. Well they called me up and told me that the "veteran mortgage person" was going to charge them between $9,000 - $12,000 in closings costs. They were afraid to change because they were afraid they weren't going to get the loan. They were going to live with the costs. They wanted us to raise the price in order to pay for the closing costs.
Don't do this. This is one of the dumbest mistakes buyers make. You do not have to pay exorbitant closing costs. You are just raising your payments to line a mortgage guy's pockets. Shop the loan if you think you are being taken. There is no reason to pay excess points. You might as well go down and throw the money off a bridge. You have to pay this back for the next thirty years. They were going to add another $30 a month to the payment because of this "good friend."

Sometimes the closing costs look high because you have escrows or you have a FHA loan. The costs are usually higher because you are setting up an escrows. But that is like a savings account for taxes and insurance - you are not getting ripped off there. It is the first two lines of the good Faith and the closing statement that you have to look at.

If you have good to great credit you should never pay points. If you have average to bad credit you still should not pay more than 1 - 2% of the loan amount.

What I am seeing is people with good credit getting charged points and people with bad credit getting bent over. These people were getting bent over.

Unfortunately the "veteran Loan officer" continued to lie through the whole process. She told me that they were almost clear to close one Monday. Then Thursday she wasn't returning my calls. I knew they were not close to closing because they did not even have the title ordered. Then I talked to her boss on Friday. He said the same thing. They were close to closing and they had just ordered the title work that day.

Well this company was so full of lies and lack of professionalism that the following Friday they wouldn't take my call, still hadn't ordered the title work. And this was 26 days after the signing of the contract!!!! These are the type of mortgage people you don't want to work with.

This Sad excuse for a mortgage company wasted the sellers time by pulling a property off the market. They got the hopes up for a buyer that should of never been given a pre-approval letter. If they would have just done a proper job of qualifying the person they would have more satisfied customers. I added them to a list I have of companies that I won't accept a Pre-approval letter from.

They did not even have the courtesy of sending a mortgage denial letter out to the real estate company so the seller could get their deposit back. (as of this posting) I had to tell the buyer to call them and get it.

I hope you have a better day than I did with these clowns. Remember that the world does come around in full circle for clowns like them. I always believe somebody will take advantage of them too. My motto in business is treat somebody like you want to be treated. The saying that I have to feed my family is lame when you have to take advantage of people let alone family, and friends. Take care and have a weekend. See my website for more real estate info http://www.russravary.com