Scary Mortgage Story

This is a quick one. I watched people shop around for the best rate for their mortgage with dilligence. I try to remind them that service and honesty have a value as well. And luckily this has never happened with my clients, maybe because of the above statement, but I have heard many stories where Buyers get to closing and something has changed.

Sometimes the rate is higher, there is a pre-payment penalty or points have been charged. Psychologically you are done. You have planned everything out based on this closing date. I have heard of many people who signed with changed papers because they were afraid of losing the house while they restarted the loan. I have only heard of one person walking out of closing.

To make it more difficult, you don't have much of a case to walk away or close late. The loan came through, you just didn't like the numbers. What I have seen done when people are unsure about the mortgage professionals they use, and why would you use them if you were unsure, is to put in the contract that you have to get at least a certain rate and terms.

Not every Seller will give you this extra way out of the deal so the moral of the story is to use someone that you trust or has been highly recommended by friends or professionals.