Who are the Worst Mortgage Lenders?
At Mortgage House, we don’t bad-mouth our competitors. However, we do want to protect homebuyers from bad lenders. Therefore, we have put together a list of tips to help you spot a lousy mortgage lender before you sign a harmful loan.
Tries to Get You to Sign a Bigger Loan
A good mortgage lender should not tell you to lie about your income to get a bigger loan. They should also not offer you a loan you cannot afford. Instead, a good lender should work with you, respect your income, and how much you can afford to pay back in monthly repayments.
It doesn’t consider all of your income.
It is usual for mortgage lenders only to consider a percentage of investment income, rental income, and other bonuses or tips you receive when calculating your borrowing power. This is to ensure you have enough money to live on after you make your monthly repayment. However, a warning sign of a bad lender is when they try to offer you a loan with a monthly repayment higher than the budget you set.
Doesn’t disclose fees or rates
As a borrower, you should be aware of any closing costs, interest rates, brokerage fees, or other fees associated with your loan. Most lenders provide these “hidden” fees at the end of your loan under a disclosure. However, if your lender gives no disclosure, you will not be informed about these unexpected fees. As a result, you may not be prepared to pay them. Good lenders will provide a disclosure before you apply for a loan, allowing you to compare their loan with other lenders.
If you are searching for a lender, don’t settle for one who promises one thing but delivers another; Choose Mortgage House. We are a non-bank lender offering competitive rates. We will work with you to find a loan that fits your budget.