27. Deception Exposed

Some ideas might sound good, but a closer look reveals the pitfalls. For example, it’s been proven time after time that the word free is a lure most people can’t resist. It’s amazing how expensive some of those free offers turn out to be! One common lure used in the mortgage business is the so-called free appraisal report. Let’s take a closer look at that and other ploys.

“Free” Appraisal Report

Appraisers do not work for free. If you get that marketing come-on by a lender, just know you are paying for the appraisal in another way—either through a fee called by another name or through the Yield Spread Premium or overage, which means you took a higher interest rate to cover it.

If a loan officer says, “We pay for your appraisal ...

Get Homebuyers Beware: Who’s Ripping You Off Now?—What You Must Know About the New Rules of Mortgage and Credit now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.