Have you received a letter with an offer that seemed too good to be true? Today I wanted to clear the air to separate fact from fiction when it comes to these types of offers.
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I'm joined today by VP Regional Underwriting Manager, Scott Strong, to help me separate fact from fiction in the world of mortgages.
Have you ever received a letter in the mail that says you're pre-approved, pre-selected, don't need an appraisal, and that you can get up to 95% cash out? These are the kinds of things we want to discuss to help keep you from wasting your time and having your credit pulled unnecessarily.
We're currently not aware of any FHA or conventional loans that offer cash out up to 95% of appraised value. It's simply fake! Now, some programs will allow you to bypass an appraisal. FHA loans typically streamline, so you don't need an appraisal, but not all loans are like this. When you do a streamline, there are costs associated with it.
There's no such thing as getting something for nothing.
When you see 'zero closing cost options available,' know that there are actually some. However, this typically happens on a case-by-case basis, so you need to meet with your Loan Officer. It doesn't really have anything to do with underwriting. The same typically goes when you see something like 'no application fees.'
I always tell my clients that there's no such thing as getting something for nothing. Somewhere along the line in a loan, you're going to pay for it. I don't want anything to be hidden from clients, so I want you to be very well informed. We don't want you to get suckered into a bad deal for lack of asking the right questions—talk to your loan professional to get the facts.
If you have any questions I can help you with, please don't hesitate to give me a call or send me an email. I'd be happy to help however I can.
