Mortgage Morons
Written by Confusion support on March 7, 2008 – 6:12 pm -
Recently I have been involved in buying a house. I don’t think I can take it anymore! This has to be the last house I buy! I’m renting after this. I am so worn out from paper-work, meetings, stress, house viewing, driving, insurance, phone calls and credit checks that I am seriously questioning if it is worth it just to get a little more space (probably the biggest reason people buy).
What has happened to the housing market and the mortgage business? This has to be one of the least user-friendly businesses on the planet! It is so confusing that I have no idea if and where I am being ripped off or not. This is pure rape of the consumer. The paper-work grows every year as well.
I challenge anyone to actually explain the validity of all the fees. Half of my estimated fees are for administrative type stuff!
Document preparation fee, endorsement fee, wire fee, closing service letter fee, overnight fee (I didn’t request anything be shipped overnight you morons!), recording fee, flood certification fee, application fees, another document preparation fee, administration fee.
Is this really necessary? How many people are getting rich off of the consumer paying unnecessary and unexplainable fees?
The oddest thing I find about the mortgage process is that they act like they are so concerned about foreclosures, or not making the closing costs, yet the mortgage approval process itself is flawed in so many ways. The most obvious flaw is that, for a standard mortgage, they do not consider future utility costs, or the number of children you have, in approving a mortgage. They act like you are buying a house that apparently has no utility costs, or that children seemingly cost nothing to raise. Complete morons! If you are going to stop foreclosures you have to consider these estimated costs before approving a mortgage! The mortgage people I worked with were more concerned with whether or not my bank account showed enough funds to meet the mortgage closing costs, than anything else. The total closing costs are completely out of hand anyway, wiping out many people’s bank accounts. I suppose this is so they can at least get their fee and run. What if I was paying in cash from a shoebox? Is that not allowed? Do you have to show it in a bank account? Complete morons!
As well, if you are getting a cash gift from someone to help pay closing, it has to be from a relative or fiancée (at least in Pennsylvania). What is the reasoning behind that? Like that isn’t easy to lie about or manipulate! Completely ridiculous.
Obviously, Common sense does not prevail in the mortgage process. Apparently your credit score barely helps. The amount of money you put down is driving the interest rate you pay, not your credit score. I was told by the mortgage broker that that is because they look at you as less of a credit risk if you put 5%-20% down (even though you may wipe out your bank account in the process). This is some, but little, common sense. You can have a perfect credit score but only 2% down and you get the higher interest rate! You can have a terrible credit score and 5% down and you get a quarter point less on your interest rate. Wake up people, this is not right!
I am completely confused as to the thought process of Mortgage morons.
Tags: mortgagePosted in Uncategorized |
March 24th, 2008 at 9:00 am
I do know that your credit score does help sometimes, but I believe it still does no good unless you have 5-20% down. Also, what they should do is “fine” mortgage brokers a nominal amount if they have approved a mortgage which is defaulted on in under 5 years. This will catch their attention!