I’m in the process of buying a house, and I think my mortgage broker might be predatory. What should I do?

I have lived in this house for 4+ years and have a chance to buy it for the remaining amount on the owner’s mortgage. Property values in the neighboorhood have increased in the past few years, which also means I’ll have almost instant equity. My credit isn’t great, but we found a mortgage company that would work with us. But now I’m starting to question how honest they are. The broker will not tell me what the rates on the 80/20 will be, or give me a GFE until I fax him the signed copy of the agreement of sale. He also wants to close THIS friday, and refinance within the next two weeks. I know this is probably setting off all kinds of alarms for you real estate peeps out there – it is for me, too. What else should I be watching for, and who can I report this guy to if it turns out he’s not on the up-and-up?

Good answers above…here’s another qualified professional (expert even) telling you to run, not walk.

No GFE and no rates is illegal. He wants to refi right away because he’s a. double-dipping to hit you twice b. knows the rate on the purchase isn’t what he promised.

In the possible event he’s instead really good, and using positive LTV swing to get you a better loan (read: unseasoned rate-term refi based on appraised value vs. purchase price, which qualifies you for a better loan), then he should have been more forthcoming with that plan.

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