As we are seeing home mortgages and refinances at all-time highs, don’t be too quick to accept an offer from a national mortgage lender, without reading the small print. Most recently National lenders are attempting new tactics to entice homeowners with low rates and nearly impossible requirements to qualify.

Not long ago a borrower came into Indigo Mortgage with a mail offer from a national lender wanting to know if we could beat it. What was the offer? 2.99% on a 30-year fixed. As we reviewed the offer, the rate was too high, and the small print showed it would be nearly impossible for the borrower to even qualify for that rate anyway!

As we read the disclaimer, it noted the loan must be below 53% loan to value, buy down of 1.5% discount points (in this case was about $5,800) and the borrower had to have a FICO score of 850!

As a lender for over 20 years, Indigo Mortgage has never seen a score that high. We tend to see this “bait and switch” a lot, with an offer that the borrower could never qualify for. This borrower would then have likely been given a higher rate above 3% and charged thousands in buy downs.

Luckily, the borrower shopped his rate and came to Indigo Mortgage. We were able to lock in a lower rate than 2.99% and save $5,800 in closing costs. So, when you receive an offer from a national mortgage lender, don’t be too quick to take the bait! Shop local and see how we can help you!