My Advice on Mortgages/Refinances, etc.

[ldn324]

I just wanted to add my 2 cents for anyone currently thinking about taking out or refinancing a mortgage - or any major financial transaction for that matter.

I'm sure there are a lot of mortgage people on the boards and I certainly don't mean any disrespect, but I have zero trust level for anyone in the mortgage business right now. I guess it has a lot to do with things changing recently and that all of the agressive lending practices in the past have finally started to catch up with these lenders. But our purchase two years ago and this refi that I'm going through now have got to be the most stressful things in recent memory.

I'm very skeptical over any financial transaction. I'm always sure I'm out to be taken advantage of. So I hired an attorney to represent me at the closing of my current refi. Well, when my lender found this out, he did everything he could to stall, disclose as little information as possible - basically punish me for hiring an attorney. He actually tried to strong arm me into closing without the attorney reviewing the documents. His excuse was that we have three days after closing to change our minds so I should have the attorney review them after the fact. Yeah, I don't think so! Little fine print there too!

I was supposed to close at 10 am today. That didn't happen because they forgot to overnight the paperwork yesterday. I think that they feel if they start doing this kind of stuff that I will finally bow and just close without the attorney. Ha ha...guess again. If anything, it substantiates my decision to have hired an attorney in the first place. I met with the attorney and he reviewed the settlement sheet today. Already, there are several red flags, including one that he says may not even be legal.

I really can't imagine doing any major financial transaction without an attorney from now on. Doesn't matter if it's a purchase, a refi or anything else - that fee you pay to a good attorney can save you years of heartache down the road. In my opinion, it's the best and most valuable insurance policy you will ever have.

Buyer definitely beware - consider at least consulting with an attorney before you sign anything. I almost didn't and I could have really been in big trouble. Gotta watch out for yourself!

[k_reile]

I was in the mortgage industry but I worked for the banks and was not comissioned. THere are some pretty shady mtg companies out there. That is why I will only refinance my home when my ARM is up with a bank and will close with an attny like I did when we bought our house.

[Tink&Goofy]

Mortgage lenders are a dime a dozen around here - all claiming to be able to get you the best deal. Just like with any service, they are all across the board - some completely on the up and up, and some what I would call less than ethical. I am very lucky - my step dad owns a mortgage brokerage and has handled all of our transactions (with no origination fees, I might add). But if this special perk had not been available, I would most definitely would stick with the larger, more reputable places, OR get recommendations from friends and relatives on who they went with and how it went. Good ones will have no problem providing the information you need to have an attorney review. They should never have an issue with an attorney being involved in the closing. I think I would have pulled the plug a long time ago, and looked elsewhere. Glad you have an attorney involved. Although its been stressful, at least you should be assured that ultimately things will be done correctly.