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Preapproval a litle higher than i was expecting, should I switch lenders?

I make anywhere between 40 and 50 a year with my commission and have a 722 fico. I've been looking into condos priced around 130 - 180k. However, I got preapproved for a loan amount of 400,000?? went through a private lender, not sure I should mention names, but this doesn't feel right. They want some origination fees up front and said they can lock me in on a 2.5% rate on FHA loan once i pay the "origination charge"... something smell fishy?
By terell974239175 from OK Aug 25th 2014
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Definitely something is not right.. 2.5% is not available anywhere right now.. and no competent lender would ever ask or a fee upfront.. Also, FHA's maximum loan amount is $271,050, so there's another red flag.. ditch these scammers. For this very reason i always suggest you contact a local mortgage broker rather than one of those 50 states, or internet lenders.. If you have a problem with the local guy, you can walk right into their office and get it corrected.. you can also look for reviews to see how other borrowers experience with then has been, or you can look up the company on Better Business Bureau.. but the first thing you should do is look up your lender and loan officer on the National Mortgage Licensing System and Registry. Here's the link.. http://www.nmlsconsumeraccess.org/ Here you can look up any loan officer or lender that is licensed to do business. If you cannot find them on this website, then I know for certain they are a not legit.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 25th 2014

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Enter a reply hereI agree with William. It is illegal for a lender or broker to collect any fees up front other than actual credit report and appraisal charges, and those may only be charged after certain disclsures are provided to you (such as, but not limited to, a Good Faith Estimate & Truth In Lending). If you would like me to run some number for you, please contact me at 405.308.4208.Nick Utesch; Progressive Financial Services Corp; NMLS ID #214427/216693

Aug 25th 2014


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