Dennis Norman
By:Dennis Norman
This is the third and final post of my E-View TM with H. John Frank,a highly respected mortgage banker that is the President of Paramount Mortgage Co. If you missed part one or two the link to them is at the end of this post.
Lets continue with the final part of the E-View TM:
H. John Frank,Jr.,President Paramount Mortgage Co.
Q-I’ve heard stories of investors that,in an effort to find the “best”deal,shopped around extensively with Internet-based lenders. Unfortunately they later found they negatively impacted their credit score because of having multiple inquiries on their credit report as a result of submitting multiple applications. Can you please shed some light on this and if it does still impact credit scores?
A- Typically,people who ‘shop’ for the best rates via the internet or just using local lenders,do not hurt their score with the multiple inquiries as long as this is done in 30 day increments.
Q-This is a good time probably to address the Internet. There appear to be hundreds of lenders on the Internet for investors to choose from in addition to their local lenders. Do you think there is cause for concern for a borrower in dealing with an Internet based company that does not have a physical location in their market? Or should they treat that type of company the same as a local company when checking them out to consider as their lender?
A- People must lean that just because one lender “offers” them the lowest rate,it doesn’t mean they are getting the best deal. Rates are important,but fees can be killers. Borrowers are promised certain rates and fees when they originally apply for their loan,then ‘little’ things change the scenarios and rates ‘mysteriously’ go up,often times not known to the innocent,or not so innocent,borrower until the day of closing. Too late to change when a seller and/or agent are breathing down their neck to close on their loan.
When you deal with a local lender or someone you have previously dealt with,you can always go into their office and discuss the problems or hopefully a local representative will be at the closing to go over the numbers with you and correct any mistakes or changes that have occurred.
When you deal with an Internet lender,you’re just a ‘phone call’ and a title company closer is there to strictly go over the paperwork with you. They have no control of the numbers and no chance of changing them on their own. In other words,you’re on your own!
To contact John for help with your financing needs,or with questions,you can reach him by phone at (314) 372-4300,email at hjfrankjr@paramountmortgage.com or you can visit his company website at http://www.paramountmortgage.com/.
To Read the first post of this series click here.
To Read the second post of this series click here.
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