Finding an honest lender that will help me with my loan

jmckenna · Joined: 11 Jul 2007 Posts: 2 Location: phoenix, az

Hi my name is John,
I plan on purchasing a home in the next month or so and I want to make sure I am not only getting a fair loan but that I really understand my loan terms. I will be using an online website to get all my loan terms for me. Since they are not a lead company and won't be selling off my phone number to all you lenders, I will get to find a lender on my own.

My question is, I want to only apply with 2 or 3 lenders that are upfront and willing to lay their cards on the table by using this online website to show me all the terms of a loan they offer me. I know the good faith estimates that are supposed to tell me everything about the loan are crap so don't try and pull that one over on me.

Do any of the lenders on this web site currently use or are willing to fill out the form through the website so I feel comfortable during the application process?

I have asked a few local companies here in Phoenix and they keep using their aggressive sales tactics and promising me they are the best and they will beat out anyone so they don't need to give my terms through this website blah, blah, blah.

I'm really just interested in someone who will take the time to fill out this online form for me so I know that every question has been asked to help me make a good choice. Please post if you are a mortgage company or broker that has nothing to hide and will help me THANKS! John

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Modified your post to sound less like an Ad, just in case you were actually serious.

m2c · Joined: 03 Aug 2005 Posts: 937

A teacher who does not have the confidence to evaluate loan scenarios? OK, enough sarcasm but the thought almost makes one suspect you’re a shill for this web site.

Assume the altruistic aims on the website or true or at least near true.. Still they are reduced to the status of a “lead seller”. Not all bad and at a “starting at $19.95” far, far less that the big company with the slogan to the effect of when banks compete, you lose. With this cost there likely will be minimum hike to effective rate unless the conversion rate is dismal.

The site pitches as fear close which from your post you have apparently bought into. (yes, since you’re a teacher, I purposely ended a sentence with a preposition) Within the conforming mortgage world, the vast majority of loans close on exactly the same terms as in the application. Exceptions have a big play in newspapers because they are unusual and help sell newspapers. Just pay attention to the details of the lock agreement you are given at application.

Some might find the “confused woman” picture a bit trite if not offensive. Despite all the nice visuals there are not all that many deceptive “hooks” out there unless you’ve got bad credit (subprime) or are “income”, real income, challenged. Product choice within the conforming world has narrowed with the spread in adjustable and fixed rates. Unless you are inclined to do something kooky like a MTA the choice becomes one more of loan term although 15-years are almost on top of the 30s. 40s – well, it’s bang for the buck and whether you need the qualifying stretch. IOs? Yes but again the spread has narrowed.

“We’re the best in town” Come on, who’s going to believe that? What is best? Do you even want this “best” if it come with other costs? Rates change slightly (hopefully) each day so if this service gets a quote on day X from one source and on day X+1 from another source, it’s apples and oranges. “All the terms”? Very similar within the conforming world. Some variances – prepayment penalties (very rare); No MI (usually cuts off at 85% LTV and is available on a spotty basis); charges for “no T&I escrow”; LPMI (lender paid MI – used to have mark ups but competition appears to have brought it down to cost); discounted month MI (not universally available).

The “analysis” shown on the website appears to be fairly generic and not “in depth”. Keep us informed of your experience with this site. I would suggest also using a “control” mortgage company who does NOT pay a fee to this site. Curious where you get the better overall service.

PS Ops, I just noticed Hap elimiated the site name. Perhaps he shares my suspicion there is a shill around

jmckenna · Joined: 11 Jul 2007 Posts: 2 Location: phoenix, az

I'm a little confused. Does insulting potential clients and services help your business?

I asked if there was a lender that was willing to help me and I suppose that tearing down a service that is meant to help people is your way of saying "no"? You also completely lost me with your explanations. Being a teacher does not equate to understanding mortgage loans just as I would not expect you to understand econometrics and statistical regressions.

Perhaps this is why I keep seeing references to loan officers being worse than used car salesmen. I would rather take my chances with someone that is willing to explore ways to help me better understand what I am getting into than listen to why I shouldn't use a service that helps me.

Back to my question, is there an honest lender out there that is willing to help me sort through this process by using this online form with said website? If not, is there a more consumer friendly site where I can ask this question? So far, this has been a rather hostile experience.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

This is a consumer friendly site. If people have questions, we respond to them. We provide information to those who need it, frequently more information than they asked for.

You're not likely to find another website like this, because most websites are about making a quick buck. The people here do this as a hobby because we enjoy what we do.

Comparing us all to used car salesmen is fantastic. That's a great way to get people to want to help you.

We do not allow off-site links or contact information unless you are a member of the community for some time. Simply too much potential for virus's, trojans, and simple advertisements which are *NOT* what this website is about.

So to answer your question, no. Nobody from this website will be going to visit the one you posted. If you have questions about the loan process, and want to make sure you understand everything, then by all means ask away. I guarantee you you will get 100x better information from the people here than you will from some shmuck comparing two GFE's and telling you that one is better than the other, without considering the large number of other factors that should go into the consideration process.

Quote: I know the good faith estimates that are supposed to tell me everything about the loan are crap so don't try and pull that one over on me.

If the GFE you receive is crap, then you picked the wrong lender.

Quote: Please post if you are a mortgage company or broker that has nothing to hide and will help me

Oh, and just so you're aware, coming out of the gates assuming that everyone in the industry is automatically hiding something? Fantastic way to make people jump up and down to want to help you.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

After reviewing the website, I'm even more convinced this is simply an advertisement.

It clearly states the following:

Quote: Offers Submitted
Each lender you apply with through our site will be required to fill out our online mortgage offer form. The online mortgage offer form will ask each loan officer important questions about the terms of the mortgage loan they are offering you. This form will uncover the good and bad of each mortgage offer.

Welcome to lending tree 101. You're not getting better brokers, you're getting the same brokers that are going through a 3rd party company who's giving you a simple report to compare 4 different loan officers (your choice, of their selection) who amazingly enough, will probably find a way to "change programs" or "Change lenders" at the last minute so that the good faith estimate that they provided to you up front is no longer in play. You're getting those same people that do all their marketing through leads and cold-calling. Not that there aren't many people that are great about that (some on this site in fact), but VERY frequently, especially these days, many of these are the newbies or the ones that have nothing else to turn to.

Good luck with the site, but it's not being posted here.

m2c · Joined: 03 Aug 2005 Posts: 937

I’m still not convinced you’re not a shill – too many trigger words in your original post plus you mentioned the web site TWICE.

But assuming you are “for real”, I believe the concern is that you may have been sucked into a worse situation. Yes, I’ve seen the utube interview with the assertions that this site is “warm and fuzzy”. May well be but bop over to the affiliate section of the web site and READ. To wit, this origination accepts ANY lender applicant. Wow, that’s due diligence for you! Then they go on to talk about 40% commission for SOLD items. “Sold” is a key word in legalese for our industry.

Federal law for decades has prohibited payment of “referral fees”. Innovative as hucksters can be, the concept of payments for leads was developed. Holy water was sprinkled on this but only so far as “leads” – not just leads that close. There are even operations that insist that the payee provide some phony names (usually 8 to 10) with each real referral so that can present a “legal” picture for Reg Z. To those who follow a more ethical business plan, this charade is just a sham which passes on the increased cost to the borrowers. It may well be this operation is the altruistic group that it purports but there are warning bells in the agreement on their own site. Overdoing the “fear hooks” is another warning sign.

It may well be that all the philistines have become broker in AZ but, again, I’ve got to question the characterization in your original post. Try this outfit by all means but I’d also sit down with a real broker to review face-to-face the pluses and minuses. I think you will a get more meaningful dialogue than the canned responses shown on the sample “reports” on the web site. Oh well, the graphics are nice though.

Hey, here’s an idea! Why don’t you post on this site what your objectives are and get some ideas on the parameters you should review? Course if you real objective were to advertise this posted web site .......

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Quote: I’m still not convinced you’re not a shill – too many trigger words in your original post plus you mentioned the web site TWICE.

Three times actually, they were all removed.

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

m2c and Haplo....you both are super-sleuths. Protecting the rest of us from sneaky lead marketers....hurrah!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Yar! Shiver me timbers!

We been around here long enough to spot the ads easy ;)