Mortgage and Construction Loans

Avoid the "bait and switch". The mortgage lending business is notorious for baiting and switching, which is when a loan officer or advertisement offers you one thing and then tries to sells you something else. Remember that if it sounds too good to be true, it probably is. Make sure you always get your quote in writing.

Typical signs of baiting and switching are obvious, some basic examples are:
o Over the phone, you are offered a much lower rate than any other quote and once you've sent in your application the rate you were quoted has all of a sudden vanished.
o You are offered a construction loan with no points and no loan fees. What you are not told is that you are paying for it with a higher interest rate and the costs are built into the loan.
o You are told that you will not have any payments while you're building. What you're not told is that construction loans often have an option of "interest reserves" and the payments are added to the loan amount.

For upfront information on a mortgage loan or a construction loan, give us a call at 763-784-3400 or visit our website at www.contractorscapital.com.