This article exposes shady loan officer tactics. If you or someone you know
is currently involved in a home refinance, you should take the time to read
this article.

Refinancing scams are big news lately, and for good reason.
If you are considering refinancing your home, I urge you to read this article
in its entirety. It might save you tens of thousands of dollars in the long
run. 

I used to work for a major, US direct lender who specialized in
home-loan refinancing. This corporation taught its loan representatives how to
manipulate customers into agreeing to loans that were not in the borrower’s
best interest. Although we were taught many methods of psychologically coercing
customers into signing loan documents, this article will only discuss one of
those methods.

Before I discuss this tactic, you should realize that when a
lender evaluates your loan application, they are primarily looking at three
things: 

1)         FICO Score

2)         Mortgage-related
late payments

3)         Bankruptcies

Credit-card payment history, car-payment history, student
loans, collections, charge-offs, and pretty much any type of credit problem
that is not directly related to a mortgage is irrelevant to getting your loan
approved. Why are these credit issues irrelevant? Because that is what the FICO
score represents. Your FICO score is a numerical value that takes into
consideration all of these factors and lumps them into a number that will range
from 500 to 800+.

Mortgage-related late payments will typically increase your
interest rate. Bankruptcies will also increase your interest rate or (depending
upon the lender) make you “un-lendable”. 

Here is one shady-loan-officer tactic that you should be
aware of:

Your loan officer may want to talk with you about your
credit history. He or she will ask you specific questions regarding credit-card
late payments or otherwise non-mortgage related issues on your credit report.
Your loan officer will ask that you explain yourself and provide a valid reason
why you were late on those payments.

How is this manipulative?

For starters, those credit issues are irrelevant to your
loan approval. Your loan officer should not be discussing them. By asking about
your credit history and requesting an explanation, your loan officer is
accomplishing three things:

1)         Making you
feel insecure about your credit history so that you will be less likely to
request a quote from another lender

2)         Forcing you
to “open up” about your personal life; this will help develop a stronger
relationship between the two of you

3)         Make you
feel more appreciative of the loan that your loan officer offers you

The more battered your credit history, the more ammunition a
ruthless loan officer will have to use against you and try to manipulate you
into accepting a loan that is not in your best interest.

Remember, the majority of loan officers know exactly what
type of loan you are approved for the moment they pull your credit. There is
absolutely no need for them to delve into your past.

If you experience this type of tactic from your loan
officer, I strongly suggest you find a more reputable company to work with.

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ABOUT THE AUTHOR

Christian Rios is an x-loan officer for a major, US direct lender. He now
specializes in educating home owners about available home loans. You can learn
about Home Equity Lines of Credit at this site: heloc
mortgages. To learn more about traditional home refinancing, please
visit: california
refinance home equity loan California
mortgage. And if you or someone you know is interested in a reverse
mortgage, you can learn more about them here: riverside California reverse
mortgage.