Im in the process of buying a house and i think my mortgage broker might be predatory what should i do?

Pearl
I have lived in this house for 4+ years and have a chance to buy it for the remaining amount on the owner's mortgage. Property values in the neighboorhood have increased in the past few years, which also means I'll have almost instant equity. My credit isn't great, but we found a mortgage company that would work with us. But now I'm starting to question how honest they are. The broker will not tell me what the rates on the 80/20 will be, or give me a GFE until I fax him the signed copy of the agreement of sale. He also wants to close THIS friday, and refinance within the next two weeks. I know this is probably setting off all kinds of alarms for you real estate peeps out there - it is for me, too. What else should I be watching for, and who can I report this guy to if it turns out he's not on the up-and-up?

Annette
Good answers above...here's another qualified professional (expert even) telling you to run, not walk.No GFE and no rates is illegal. He wants to refi right away because he's a. double-dipping to hit you twice b. knows the rate on the purchase isn't what he promised.In the possible event he's instead really good, and using positive LTV swing to get you a better loan (read: unseasoned rate-term refi based on appraised value vs. purchase price, which qualifies you for a better loan), then he should have been more forthcoming with that plan.

Catrina
Stop, .. if he doesn't want to give you a gfe don't do it and why would you want to refinace after you close ?I do mortgages, what state are you in? Contact me at billydtravel@comcast.net

Kandi
Get a new broker!

Ana
Take your information to an accountant or an attorney to look at for you, or consult with your local Department of Real Estate. Not sure what state you are in but you should be able to do an Internet search.

Ester
Please get another Broker -QUICKLY - YOU DO NOT HAVE TO STAY WITH HIM - OK - BY STATE LAW - YOU SHOULE GET THE LOAN APPLICATION (CALLED THE 1003), THE GOOD FAITH ESTIMATE (CALLED THE GFE) AND THE TRUTH IN LENDING IN 3-5 BUSINESS DAYS OF HIM TAKING THE APPLICATION...YOU NEED TO REPORT HIM, AND HIS COMPANY - YOU NEED TO GO OVER HIS HEAD, AND REPORT HIM TO HIS SUPERVISOR - HE IS TRYING TO CLOSE ON THIS LOAN, THAN IF YOU HAVE A NO PRE-PAYMENT PENTALITY - TRY TO REFINANCE IT INTO A 80 PERCENT LOAN, TO HAVE COMMISSION ON 2 DEALS...YOU CAN FINCANCE 100 PERCENT - 1 LOAN - OR YOU HAVE THE SELLER HOLD A SELLER 2ND, AND FINANCE THE FIRST - AND HAVE THE SELLER (FORGIVE) THE 2ND NOTE. THAT IS LEGAL - OKWHY DO I CARE - I AM A MORTGAGE BROKER (PROFESSIONAL) AND IT IS UPSETTING TO KNOW THAT PPL ARE GETTING AWAY WITH MAKING MY JOB LOOK BAD - BY TRYING TO MAKE A FAST BUCK - TO ME - IT IS ALL IN HELPING MY CLIENTS - EVERYBODY HAS A BOSS - GO OVER HIS HEAD, AND PLEASE DO A YAHOO SEARCH FOR MORTGAGE BROKER - STATE LAWS - OR CONTACT YOUR STATE - ALL ARE LICENSED...Now - so it does not hurt you r credit - have a Broker that cares, work on your deal - you all ready have a full file - the appraisal, insurance, title, etc - so names can be changes easily to another lender - Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down. Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out. Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information. This is not an advertisement - just helpful information for you...I mentioned the Seller 2nd - how this works is the home is appriased for 200, 000 (seller wnats 150, 000) Your loan amt is 160, 000 (80 percent) with seller helping with closing cost, he/she will get the 150, 000 at close. The 2nd mtg of 40, 000 will be forgiven and not recorded at the court house...This is legal, and it allows ppl to get a home loan - if all else fails, and the seller is willing to do this.

Bennie
DO NOT SIGN ANYTHING!!!He's asking you to sign something without even giving you the rates? Don't do it!!! Either the rates are REALLY high, or he is pulling something illegal (Mortgage brokes in Florida do it all the time). And anytime anyone wants to close a deal really quickly, you should wait. Only bad things can happen. Demand to see the rates in writing along with the GFE. Don;t sign anything for any reason without it. Find a new broker and report him to the BBB and the real estate licencing board.

Glinda
Im a broker of 8 years, and here's my main question...Why does he want to refinance you right after the purchase? To pull cash out? What is the reason?Here's the thing, he may need to see the purchase contract FIRST before giving you a GFE because he needs to know what the seller is willing to pay for...Now if you have already told the broker how much of the closing costs the seller is going to cover, then you have yourself a problem...THERE IS NO REASON HE CANT TELL YOU THE INTEREST RATES NOW, AND THERE IS NO REASON HE CANT TELL YOU WHAT THE COSTS WILL BE EITHER!!!If he is not willing to give you the info..that alone should be enough of a reason to look elsewhere...I know you think because you have indicated low credit, that you wont qualify at many places, but you are incorrect...I work with many investors that specialize in people with low credit, or bad credit, bankruptcy's, foreclosures, you name it... I guarantee I would not only be able to qualify you, i would LET YOU KNOW WHAT YOU QUALIFY FOR THE FIRST DAY I TALK TO YOU...That means you would have IN WRITING your rate, payment, costs, etc., all the day of our first conversation...The main thing to realize is if yo uare feeling weary about your broker at this point in the process ITS PROBABLY NOT A GOOD SIGN..Have you looked up this individual at the better business bureau? Have you looked to see if the individual is licensed? (believe it or not htere are ALOT of unlicensed mortgage brokers out there that have the manager sign off on their files)Here's what i suggest...Give me a call...I will give you a an analisys, and all your figures that you qualify for that day..(fax, email, etc.)You will not be obligated to a thing, you make the decision if working with a credible broker that you can trust is the right option for you... IF YOUR BROKER ISN'T TELLING YOU FIGURES NOW, THEN THEY ARE TRYING TO HIDE SOMETHING!!!My name is Jason Fry, i work with Providential Bancorp, a nationwide mortgage lender.. We are in the customer care division of the better business bureau (meaning 0 unresolved complaints) and I have been individually licensed for years in every state that requires licensing...I would be more then happy to provide you with honest, ethical business, for that is how a mortgage professional makes it in this industry.. I get most of my business from referrals, so making my clients happy IS MY MAIN GOAL!!!You can contact me direct at 312-264-6448, or email me at jasonf@providential.com..Also check us out on the web, and the better business bureau as well...see below>>>Thank, and Good luck!Jason FrySenior Mortgage SpecialistProvidential Bancorp312-264-6448

Odelia
Call around. Some of them are shady!! Try Lowermybills.com I swear, you will get about 100 calls from mortgage people within the hour. AND don't sign anything. But, really, you can always back out at the last minute at no cost to you. (3-day recission period, by law)

Arcelia
NACA.COM ---Read how NACA pledges to fight predatory lending practices Contact Neighborhood Assistance Corporation of America ALL SERVICES are FREE. No down payment, No closing cost, No PMI or No attorney fees. It Is For Real. Check it out with realtors in your area. Go to NACA.com. The NACA program focuses on families who could not access conventional financing, and borrowers that are considered B or C and sometimes D credit. These ratings refer to borrowers who have had charge-offs, collections, judgments, and/or bankruptcies. In addition, NACA borrowers do not have substantial savings and have encountered personal setbacks that require tremendous efforts to overcome. Great for low income families.NACA's comprehensive approach to its borrowers has made this program an incredible success. Borrowers who would have never been able to obtain an affordable home loan can thru NACA.Source(s):NACA's website: NACA.COM ---Read how NACA pledges to fight predatory lending practices

Nancey
No GFE means No buisness. Also refinance after you close is high rates. Means he/she will just use the equity in your refinance to pay more points to him/her. Call another LO in your area. If you need help email me or visit my website. I can help you settle this and tell you what you want to hear. Tired of this stuff that is why I got into this buisness.