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No-Documentation Loan |
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Hello, First time buyer here, with only 10% down and must do a no-doc loan. Our mortgage broker is insisting we pay $8,000 upfront, which will be refunded at the end IF we are or not approved. However, if we decide to go elsewhere, she will keep the money. Is this ethical practice?
Thank you. |
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I'd be surprised if anyone is offering no-documentation loans any more, given the big blow-up with sub-prime loans. Reputable lenders are getting much more careful. But let's say you did get an offer of a mortgage loan. Have you considered where you'd stand if you found out it carried a horrendous interest rate? If you refused it, sounds as if you'd lose the $8,000.
There's nothing to stop you discussing your whole financial situation with a couple of other mortgage brokers before you commit yourselves. |
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Edith
Originally published on August 23, 2007 |
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