BUYER BEWARE: That lender is RIPPING YOU OFF!
I got a call from a Maryland buyer who I have been working with for several months now, I'll call him BOB. I have reviewed all of his documentation and spent a lot of time on the phone advising him. We were good to go until an issue came up with regard to his VA Eligibility.
Bob is very proactive, not one to sit around and wait for an answer he googled information about Short Sales in Maryland. He spoke to a realtor who is a "Short Sale Expert". This real estate agent heard his challenge and referred him to his trusted lender.
Now I don't have ANY problem with that.
I am blessed to be referred by great Maryland Real Estate Agents too.
This realtor was trying to help this buyer. All good.
In speaking to my client, the loan officer got some basic information, found he was working with another lender. "Look, I am happy to help you, I have ways around that Eligibility issue, but I can't work for free. If I am going to help you, I need to do the loan. This is how I make my living."
His next question...."WHAT RATE IS SHE OFFERING?"
When Bob responded (with a rate that was about 1/2 % higher than we actually talked about) the other lender responded:
"THAT LENDER IS RIPPING YOU OFF!"
Bob called me to let me know how this other lender was going to help him with the VA eligibility issue but that he would need to do the loan. He also let me know that the other lender told him that I was ripping him off. After clarifying our earlier conversations about rates and fees, I let Bob know that all things being equal, if the other lender could do something with the eligibility that I couldn't do, then it was in his best interest to go with the other lender.
If I can't do a loan, I do my best to refer to someone who can. I think of it as my "MIRACLE ON 34th Street" business plan. If Macy's doesn't have it, refer them to Gimbles! It's all about what is best for the client!
If I don't have an answer I do everything in my power to get the answer.
I was very surprised that there was a way around the eligibility issue. To confirm, I called several VA offices including the Phoenix VA Loan Production office. I was told in no uncertain terms that there is no way around the VA eligibility issue for this borrower.
Bob is eligible for a VA loan in Maryland, but not at the loan amount he was requesting. The funny thing is that he is eligible for a HIGHER loan amount! Ahhh, our government and it's infinite wisdom! Unfortunately, Bob is not comfortable at the monthly payment on the higher loan amount.
We are back to getting around the VA loan eligibility issue.
With Bob's permission, I called the other lender who told me that he has contacts at VA that can "take care of it". I told him that if he could, that would help Bob a great deal and I hoped that it would work out.
Then I said (much more kindly than I felt)...
"By the way....My dad was career Army and my husband was career Army. I help a lot of VA buyers in Maryland and I help a lot of folks looking to refinance VA loans in Maryland. I take VERY good care of all my clients and VA clients hold a special place in my heart. I offer VERY competitive rates and fees, often much better than other lenders. Before you have all the facts, you really shouldn't tell a prospect that he is being RIPPED OFF."
"Well....that rate IS really high. We just did a $400,000 loan with a credit to the borrower at a rate that is 1/2% lower." stammered the other loan officer. (By the way...the credit his company gave was a VERY small credit).
"Bob was mistaken about the rate he told you I quoted. Actually, the rate I talked to Bob about was that SAME rate you offered to your borrower.
Did you ask Bob if he had any money for closing costs? Did you ask Bob if the seller was paying ALL of the closing costs, homeowner's insurance, taxes? Did you ask Bob if there would be a lender credit to help him to minimize his out of pocket costs at that higher rate? Did you ask him what the purchase price of the property would be? Did you know that Bob is buying a home for about $100,000? Did you get any of the facts before you told him that I was RIPPING HIM OFF??"
After apologizing to me for speaking before having the facts, the other lender decided didn't want to "fool with such a small loan". The other lender actually offered to help to see if he could help me to help Bob get around the VA eligibility issue using his contacts at the VA.
Based on my conversations with VA, the likelihood is slim, but after 11 years in this business, I will exhaust every angle before I say NO to a buyer.
Before you slam your competition, get all the facts.
If you are buying or refinancing, RATE is not the only question!
GETTING THE BEST LOAN FOR YOU IS MARYLAND MORTGAGE MAMA's TOP PRIORITY!
BUYER BEWARE: THAT LENDER IS RIPPING YOU OFF!....Or are they? Get the facts!!
If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure!
If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest. Please contact me at 410-960-2061.