May 5, 2017 – How to tell if the mortgage rate received is real or not (fake rates), by Anthony Powell, Vice President of Operations of AAFMAA Mortgage Services. After thirty years in the mortgage business, serving America’s military market with a variety of mortgage options, Anthony Powell shares some of his experiences regarding consumers and how they may be harmed in the mortgage market.
This article focuses on obtaining a real rate, and not the other areas of risk for the military family (past AAFMAA Mortgage articles may be searched on Google for Controlled Business Arrangements, Builder Risks, and other articles written on home risks or visit aafmaa.com/mortgage for an archive of articles). The first clue that the rate may not be a real rate occurs during the advertising phase.
Advertising a rate takes a lot of compliance effort. A lender must have the rate and annual percentage rate fonts be the same size (Virginia requires the largest font size), must have the scenario to qualify, and the regular disclaimers, compliance requirements, etc. Some companies advertise and then shut down systems which might enable the military mortgage rate shopper the ability to apply. The next day, the mortgage company calls the consumer, takes the mortgage loan application, charges for the appraisal, and then suprises the consumer that the rate is no longer available.
Another method some companies take in providing rates, is to provide a teaser rate whereby one percent of applicants qualify. The fine print of a recent lender states, “No loan origination fee”. The even smaller fine print then states a 1% origination fee applies,” Anthony Powell, Vice President of Operations, AAFMAA Mortgage Services states, “if you can’t read the fine print without the use of a magnifying glass, chances are that you won’t receive that rate”. The CFPB (Consumer Financial Protection Bureau) is a good place to look for complaints.
Some companies wait the consumer out. When interest rates fluctuate, a portfolio lender will often times change adjustable rate mortgage rates upward. The pipeline of mortgage closings mysteriously slows down and many of the same borrowers that had “rate locked” don’t qualify.
How does a military family insulate themselves from these companies? First, education through the internet. Type into the Google browser, “company name and complaints”. Second, take the time to get to know the company selected. Third, don’t order an appraisal until all the facts are known in writing. Ask for a Loan Estimate (closing costs, rate, annual percentage rate, etc.) in writing. Appraisals are “transferrable” but, with the exception of VA loans, many lenders won’t accept another lender’s appraisal.
Additionally, AAFMAA Mortgage Services offers a construction mortgage to well-qualified military families interested in building a new home. Anthony Powell, an experienced state-licensed loan officer and Vice President of Operations of AMS, can help military families achieve homeownership. AMS competes on rates and service and takes pride in continuing the tradition of zero BBB complaints ever to date.
Military families can get the most value out of a home sale or purchase by working with unique tools like the AMS mortgage calculator, the AMS Relocation site, and experienced state-licensed mortgage professionals. Anthony Powell further stated, “You owe it to yourself to explore rate and cost options. You are your own best advocate for getting the best mortgage product. We are here to serve your financing needs at a very competitive rate.”
Competitive, accurate, honest, transparent, and member-owned. Experience the difference at AAFMAA Mortgage Services. AAFMAA Mortgage Services LLC is licensed in the states of Connecticut, Florida, Maryland, North Carolina and Virginia. (NMLS: 1423968).
The team operates from 639 Executive Place, Suite 203, Fayetteville, North Carolina 28305. Call 844-218-6926 (844-4-AAFMAA), email mortgage(at)aafmaa.com or visit the website at http://www.aafmaa.com/mortgage to reach AAFMAA Mortgage Services. Equal Opportunity Lender. Lender NMLS: 1423968. Anthony Powell, NMLS ID 78385.