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Trigger Leads: Don't Be Exploited by the Credit Bureaus
 While
it's an illegal breach of privacy for real estate agents or
mortgage originators to sell your credit information, it is
perfectly legal for credit companies to do so. For a price
ranging anywhere from $25 to $100, your name and certain
specifics about your credit report – including your address,
phone number, mortgage history, and even your FICO score range –
are sold by the credit bureaus to mortgage companies. The result
is an onslaught of unsolicited phone calls and junk mail as soon
as you apply for a home loan.
Unfortunately, no legislation exists to prevent credit bureaus
from profiting at your expense. As a "trigger lead", you are
simply at the mercy of any number of marketing campaigns
designed specifically to discredit the mortgage professional
you've come to know and trust.
That's why, prior to applying for any loan program, I suggest
that you visit www.optoutprescreen.com to
opt-out of future credit bureau solicitations and avoid this
problem altogether. Not only will you avoid the hassle of
telemarketers, but by opting out you could potentially add 10 to
15 points to your credit score!
In addition, if you do happen to receive phone calls from
solicitors, ask them to place your name and number on their Do
Not Call list. All telemarketing companies have their own
internal Do Not Call list that they must abide by. Be sure to
take down the name of both the company and the individual who
made the call, and to let the solicitor know that you're doing
so. This way, you will have grounds to seek action against them,
should they call again.
As you embark on what is likely the largest financial
transaction of your life, you should place yourself in the hands
of a professional – not some transactional loan officer who
purchased your information from the credit bureaus. Remember,
only a limited number of sources exist for lenders to obtain
mortgage money, so it's extremely unlikely that a borrower will
find an unbelievably low rate without an unbelievably high cost.
If, however, you are curious about the programs these mortgage
companies have to offer, then listen to what they have to say.
Once they've offered you a rate that seems too good to be true,
ask them a question or two from the following list.
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1.
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Where did you get my information? Who gave you permission to
call me, and how much did you pay for my information? |
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By asking this
series of straightforward questions, you demonstrate that
you're not an uninformed or unsuspecting mortgage applicant
who can be easily victimized. |
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2.
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Why should I
be willing to speak with you when you weren’t referred to me
by someone I trust? |
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This question
demonstrates that you're interested in a long-term
relationship with a trusted advisor. |
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3.
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How are
mortgage interest rates determined, and what impacts the
rates that you are offering me today? |
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Many
unprofessional and uninformed individuals believe that home
loan rates are based on the 10-Year Treasury Note. This,
however, is not true. Mortgage interest rates are actually
based on mortgage-backed securities or mortgage bonds. In
fact, many times these securities trade in opposite
directions, and anyone who's looking at Treasury Notes to
determine the lock on your loan will provide you with
inaccurate information. |
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Asking this
question will demonstrate that you're aware of the fact that
mortgage rates can change frequently, even hourly, depending
on economic news and market volatility. If they can’t share
this information with you, what else might they be leaving
out? |
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4.
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What impact
does the Federal Reserve have on the rate I will be paying
for my first mortgage with you? |
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The answer here
is that it does not. The interest rate that you pay is
impacted by the bonds and securities markets. When the Fed
changes short term rates, the "Fed Funds Rate" or the
"Discount Rate", only rates for items such as Home Equity
Lines of Credit (HELOCs), credit cards, and other similar
loans are directly impacted. |
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5.
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What are the
specific closing costs associated with the rate and program
you're offering me today? |
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Many times,
interest rates will be quoted with origination fees or
discount points included in order to deliver the attractive
interest rate being offered. While in some cases your
situation may warrant paying these fees to get a better
rate, you should always be made aware of these fees and
options up front. Also, be aware of any fees disguised as a
"Funding Fee." In some cases, these fees have been hidden in
order to deliver what seems like an exceptionally low rate
with "no points or fees." |
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If you have any
questions about this, or any other part of the mortgage
process, please call me.
I'll be happy to assist you in any way I can.
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Call Today!
(860) 649-LEND (5363)