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RSS FeedNew Risk for Homebuyers |
Posted at Denver Real Estate Blogspot by Judith Clausen
Nov. 15, 2006
Categorized in: Buying a home...
Now there’s a new threat to homebuyers. Apparently, once a lender pulls the homebuyer’s credit report – the very first step in the home loan process – the homebuyer’s information, with telephone number, is sold by the credit bureaus to other lenders around the country, who then can call the homebuyer and hard-sell using their services instead of the lender the homebuyer is currently working with. If the homebuyer falls for the sales pitch, the danger is that the new lender will not be able to bring the loan to the closing table on time, or at all in some cases, and the homebuyer loses the home. A further risk is that the cost of the loan will be appreciably higher in hidden fees.
The Justice Department thinks all this is fine, because in their thinking the consumer is served by having more choice and having lenders compete against each other. Obviously they don’t understand the process of buying a home and how cooperation between the lender, the homebuyer, and the real estate agent can be critical for the success of a transaction. Makes you wonder whether or not DOJ officials have ever bought a home before.
