It’s Wednesday at lunchtime, and your loan closing is less than a week away.
Your mind is racing with the events of the last week and excitement about what’s to come.
The sellers cashed your deposit check. The boxes are halfway packed. The kids are excited about making new friends and swimming in the pool at the new house.
But if you’re totally honest, you’re feeling just a smidge guilty.
The first mortgage lender you talked to was super nice, totally transparent and professional. They gave you a pre-approval with a nice rate and fair fees.
But then your brother in law mentioned that a friend of his who is also a lender had an amazing offer….$5,000 off closing costs along with a special rate.
When you met with the new lender and did the math, it was going to save you $2,000 upfront over what the first lender quoted, plus $200 a month.
That’s like $12 grand in the first 5 years just in payment savings.
So while you liked your first lender, money is money so no hard feelings, right? But they sure were nice…
But just as you’re about to finish lunch, Karma sends you a text message. Except this one is from your new lender. The one with the special deal.
“Hey just a quick heads up, we just got the numbers in for the insurance and taxes, and your payment is going to be a little higher than we anticipated,” he says.
Even though you just ate, your stomach starts to turn.
As you go back and forth searching for the real story, more bad news finds you.
You take a closer look at the closing estimate the new lender gave you, and compare it side by side to the first one from the nice lender.
Apples to apples, the fees are actually HIGHER with the new lender.
Their closing fees are higher, and the title company fees are MUCH higher.
So while you’re “saving” $5,000 initially, you’re paying it back in fees at the closing.
And your payment is going to be the same as it was before.
By 3:00, your lunch is ready to make a 2nd appearance. Your intuition is telling you this might not be the last bit of bad news you receive from the new lender.
You’ve got kids who want to swim and no place to live after next week.
You decide right then and there. You just can’t handle any more surprises or changing stories with less than a week to go.
That’s when you sheepishly call us back at The Weeks Team, hoping we haven’t cancelled your application yet and you can still close with us.
Our receptionist answers the phone, and it’s like a warm hug from a friend you haven’t seen in awhile. You take a deep breath…we’ve got this.
Your file is still right here and yes we’ll be happy to take care of your loan.
You can finish your Wednesday, finally digest your food for good and get back to getting ready to move.
No more loan stress. No more surprises. And no more chasing fool’s gold.
This story has a happy ending.
Our client got their home. The closing went great. They’re super happy and the kids love the new pool.
But over the 14 years I’ve been doing this, it doesn’t always end well. We can’t always save people from themselves at the last minute. But we always try…
The lesson here is that if a deal seems too good to be true, it probably is.
And the other lesson is that no one is going to treat your friends or borrowers with the same care, professional courtesy and personal attention that we will. And we’ll do it with a great rate and competitive closing costs.
So don’t take chances by chasing fool’s gold. It may cost you more than you know.