I'm in the middle of hopefully getting a house I put an offer on. I noticed that the monthly mortgage my lender gave me showed a MIP in the estimate. When I was deciding on what kind of loan to apply for he said "with a FHA loan you don't have to pay PMI". There was no mention of MIP. I still would of done a FHA loan, but maybe would of looked for a cheaper home. This seems shady to me, I now have a offer on the house, which now I do want, and the monthly mortgage is $300 more than what I was calculating. Did they do it to trick me into purchasing a more expensive house, which means more in their pocket, or am I off on that thought? What should I do? What would any of you do?
Is it shady that my lender didn't mention about MIP on a FHA loan at the onset of our processing?
- Posted:
- 3+ months ago by djfederico
- Topics:
- house, processing, middle, loans, mortgage
Details:
Answers (2)
you know your person who would have done the processing when they don't tell you something there might be a rate in the bunch are you a first time home buyer cause if thats the case you qualify for different things under that program i think it bank of a america that handles that and i would be going to this person and saying that why didn't you tell me about this cause the morgage is 300 more then you calculated and it went in your pocket make him own his mistakes any future paper work i would look it over good before you sign it
Communication and Transparency: Lenders are expected to provide clear and comprehensive information about all costs associated with a loan. This includes upfront and ongoing costs like the FHA's upfront mortgage insurance premium (UFMIP) and the annual mortgage insurance premium (MIP). Failure to disclose these costs upfront can be seen as a lack of transparency or miscommunication.
Clarification and Questions: It would be advisable to directly ask your lender why these costs were not disclosed initially. There may be a misunderstanding or a communication error that can be clarified. It's important to have all the information on hand before proceeding further with the loan process.
Comparison Shopping: This situation underscores the importance of shopping around for mortgage options and comparing different lenders. Not only do conditions and rates vary, but so does the level of service and transparency.
Financial Impact: Understanding the impact of MIP on your total loan cost and monthly payments is essential. MIP adds to the cost over the life of the loan, and not knowing about it from the start could affect your budgeting and financial planning.
Lender Reputation: Consider the overall reputation of the lender. If you have other reasons to question their practices or transparency, it might be worth considering other lending options.
Advisory Services: If you feel uncertain about the information given or the trustworthiness of your lender, consulting with a financial advisor or a mortgage broker might help. They can provide a third-party perspective and help you understand all your options.