Another company is proud to state “what you see is what you get,” expressing the transparency of their work. But seeing is only one sense; hearing is also important. The company talks of a fixed rate and shows a number on the screen that is much lower than 30-year fixed rates at every other lender. How do they do this? They want you to believe that they have better rates, but in fact they are talking about a 15-year fixed, not a 30-year. Just a minor deception to get you to call so they have a chance to make their pitch! Fool me once, shame on you. Fool me twice and I am going to lose some money or even my house!
The ultimate nonsensical tagline is, “it’s the biggest no-brainer in the world.” I assume they mean you need not think when it comes to this company and their products - just react. It’s a pretty good idea because nearly everything they say is either wrong, exaggerated or simply doesn’t make sense. What the heck…just do it!
I bring up these examples because it has never been more important to actually understand your mortgage. Record numbers have been foreclosed out of their houses, people who said they didn’t know what they were signing. Many probably would still have their homes if they had ignored the taglines and had asked questions about their loans.
Following some simple rules can stop the damage from entertainment disguised as information:
1. Listen to what is said more than once, and read what is written over again.
2. See if the main pitch from the company relates to what you’re doing with them. (You’re getting a loan, not helping change an industry).
3. If you’re misled, leave and go elsewhere.
4. Make sure all of your questions are answered.
5. Get everything in writing.
Simple rules can yield spectacular results. You might find that you are getting the best loan for you, one that you understand and that will put you onto the road to financial freedom.
And as a further caution, the words, “I didn’t understand what I got” won’t cut it anymore, anywhere.