Ryan’s Mortgage Blog:
A client of mine, we’ll call him Bob, had an interesting thing happened to him recently while dealing with his current lender, which I will not name but lets just say they are one of the big name lenders, but for now we will call them XYZ. Bob chose to go with my company for his refinance recently and his lender, XYZ got wind of it because we had ordered a payoff request from them. They gave him a call and tried to play ball. which is normal. Their quote to him was very similar to ours and he decided to stick with us (smart man). A week later XYZ called and said rates would be going up tomorrow and if Bob gave them his credit card number they could “lock” the rate in that day for a charge of $600. They told him they could beat our rate by 1/8% but he would have to “lock” in immediately. This makes no sense and is not common or ethical practice. It should not cost you money to lock in a rate, or at least our company doesn’t charge to do it, nor do I know of any others that do. I really hope this isn’t a new trend with big name lenders, but this is probably just an isolated incident of a loan officer trying to make money. I just wanted to share this with you guys so you could be aware of it while you are out shopping for rates.
If you want a legitimate FREE rate quote, feel free to contact me at RBaker@PeregrineLending.com or 805-540-0866