Beware of Mortgage Teaser Rates
Have you seen an advertised interest rate that seems too good to be true? Well, it probably is. The “bait-and-switch” is a classic mortgage scam tactic to lure consumers in with incredibly low rates (compared to market rates) or exceptionally favorable terms. Once the lender lures you into the process, the terms suddenly change, and you’re given a less appealing loan offer.
Protect yourself by getting all loan offers in writing upfront and be wary of lenders who make verbal promises and resist putting details in writing.
If you see a low interest rate that you are unsure of, please give one of our Loan Officers a call at (972) 330-8530 and we would be happy to evaluate your situation and review reasonable options designed to fit your home financing needs.
Red Flags to Look Out For:
- Too Good to be True Offers- Exceptionally low interest rates, no income verifications, or guaranteed approvals regardless of your credit history are all red flags indicative of a potential scam. Legitimate lenders must assess your financial situation to make responsible lending decisions.
- High-Pressure Sales Tactics- Be wary of lenders who rush you to sign paperwork or discourage you from comparing offers.
- Upfront Fees- Large, upfront fees for vague or undefined services are a major red flag. Legitimate lenders typically charge fees only after services have been rendered or upon closing.