Beware of Deceptive Advertising in the Mortgage Industry

Shopping for a mortgage loan can seem overwhelming at times. Combine that with the “sounds too good to be true” advertising and you may find yourself questioning your decisions. The reality is that every industry has good players and bad players.

One way that the bad players get you to contact them is by advertising what seems like an incredible deal. The Consumer Financial Protection Bureau examines and fines lenders for false or misleading information.

Below are some tips to help you be aware of Misleading Ads

  • Beware of rates that seem much lower than others. This is a common way that unscrupulous lenders bait you into submitting your information. Next thing you know, numerous lenders are calling, emailing, and texting you!
  • Watch for advertisements that imply the company is affiliated with a government institution. 
  • Ads that state very low credit scores as acceptable.
  • Anything stating “economic stimulus plan” or “ending soon” can be suspect.
  • Advertisements that say you can skip payments if you refinance with them. 
  • Misrepresenting the documents, you need for a loan approval.
  • Payment amounts or rates that seem much lower than other companies.
  • Making statements that property values have risen by a certain percentage last year.
  • $0 Closing Costs Loans – They do not exist!  You either get a higher rate to cover the closing costs or you pay it out of your pocket! Any home lender can make that happen for you.
  • Companies that spend enormous amounts of money on advertising must pay for that somehow.  That somehow is the consumer that finances with them!  Carefully review your loan costs!

Trust Your Instincts – Only use a mortgage lender with a track record of happy clients! Click here to see what our customers have to say!

*The information provided has been based on rules and regulations issued by Federal Agencies and interpreted for you by MortgageCurrentcy.com. Interpretations are not guaranteed, but we attempt to make them easy to understand. Check with your local and state authorities to ensure that you meet all requirements and disclosures. Copyright © Mortgage Currentcy – Reprinted with permission

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