100,000 reads on, "How to Get Pancaked When Buying Your First Home", by Andy May, President ADRMortgage.com.
RALEIGH, N.C. (PRWEB) April 22, 2019 -- 100,000 reads on, "How to Get Pancaked When Buying Your First Home", by Andy May, President ADRMortgage.com. Move-up buyers have already learned the hard way with regard to purchasing a home. Here's a list of the top ten ways to get pancaked as a first time home buyer in the real estate market -and how to avoid these mistakes in the future.
First, you put personal information on the web and ask for a "professional" to call. Consumers will get 70+ phone calls. You're personal data has just been sold, and you agreed to it. There's one website that shows the properties you want, then you call and ask to speak to that person - who's naturally not available. Someone else who answers your call gets you to agree to a call back and the process of calls begins.
Second, you agree to have your credit pulled. While you can't stop this, you can decide when to have it pulled. You'll get at least 15 calls from lenders asking you to do business with them, since the credit bureaus sell your information (the fact that a credit pull has occurred).
Third, you agree to use your Real Estate Agent's list of professionals (attorneys, inspectors, loan officers). I just had this happen. The Real Estate Agent asked, "well do you want the high quote or the low quote." Attorney fees may vary by thousands of dollars, loan officer fees may vary by tens of thousands of dollars. Using the Real Estate Agent's list of professionals may be a sure fire way to pay the owner of the real estate firm tens of thousands of dollars more. And the Real Estate Agent may get bonused on just how big those extra ludicrous charges can be.
Fourth, you write a check directly to the builder before you get your lender. Say goodbye to that $50k, $100k, or more. Yes, I've seen that happen just about every month I've been in this business - of course, not my customers as I address this issue before a check is written.
Fifth, buyers are in the rumple seat when it comes to coughing up due diligence and earnest monies - which you will lose at various stages of the home purchase process if you don't fulfill that contract you just signed (think about that for a moment, how many homes can you afford to do that before your final purchase?).
Sixth, well the appraisal is always accurate. I've seen appraisals vary by 50% on the same day. Do your own research. Use the registry of deeds online for your county and figure out what the cost per square foot should be, don't over-pay by $100k because many appraisers will simply say, "looks good to me."
Seventh, listen to that unregulated bank (banks are not regulated by the State in which you live, when it comes to mortgages). The person you are speaking with usually won't be a licensed loan officer, usually won't sell non-bank products, and gets paid an hourly wage - regardless if they close the loan. Customers find out at the closing table that they will pay more. I just had a client believe that they could get a jumbo 30 year fixed rate with $800 in total closing costs at a rate of 3.75%. If it's too good to be true, it is.
Eighth, don't ask for a loan estimate. Without one, customers have no idea what the costs are. In the above example, the customer never asked the bank for a loan estimate - and decided to move forward with the bank. It's not even a North Carolina bank, so the bank usually has no idea of all closing costs are required.
Ninth, don't search for complaints on the loan officer, don't search consumeraccess.org to determine if this person is really a loan officer, and don't search for complaints about the company. Simply read all the posts from happy customers. It's the ones that are unhappy that tell the home buyer what's really going on at the lending company. At ADRMortgage.com we've had zero BBB complaints ever-to-date, going on year 15.
And lastly, don't listen to unrealistic offers. "North Carolina is a buyer beware state, so make sure you know who you are working with. Don't just read the fake on-line posts of past customers. Many of which are written by the marketing department and posted. Search for bad reviews, complaints (CFPB -Consumer Financial Protection Bureau) and understand what you are paying before entering a contract," says Andy May, Senior Loan Officer at ADRMortgage.com (and owner).
"The more time you put into researching who you are working with, the better off you will be when it comes time to getting a good deal in real estate."
This overview touches on some of the more important aspects of the home buying process. Make no mistake, the process has changed and the laws that have been implemented have extended the timeline for completing the mortgage process. Advertisements to the contrary should be reviewed with an eye toward honesty and trustworthiness.
ADRMortgage.com is owned by Andy May Group, LLC and is a state licensed mortgage company in North Carolina and Virginia since 2005 (NMLS #88010, MLO #103418). Since 2005 the company has received Zero BBB complaints and treats customers as family. Family owned and operated from Raleigh, North Carolina the company serves military (VA mortgages), Jumbo, conventional, FHA, USDA and other families looking to obtain the lowest financing costs available. ADRMortgage.com competes on rate and service and is located at 8522 Six Forks Road, Suite 201, Raleigh, North Carolina 27615. Andy May may be reached at 919 771 3379. "Give me a call for a quick quote or idea of rates."
Andrew May, ADRMortgage.com, http://www.adrmortgage.com, 9197713379, [email protected]
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