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I received a referral from a local Realtor yesterday. This gentleman had been working with another lender for 2 months and had come to me after the other lender informed him that he would no longer qualify because of a change to lending guidelines. This did not surprise me, as guidelines change dailey, but I was willing to help him figure out what he needed to do. After reviewing his information I discovered that the lender he had been working with since May had committed lender malpractice through their lack of advice. They failed to inform the client the proper way to clean up a credit error on their credit report that now costs him 25 points on his FICO score, enough to increase his interest rate by .375%. Also, the previous “lender” failed to advise him of the requirement regarding seasoning of funds and gift fund guidelines, information that nearly costs him the house he worked hard to find and negotiate for.

We will be able to help him but the last lender jeopardized his credit, cost him money, and ultimately left him more confused and disheartened than when he started the process. This was a very well known national lender, unfortunately, the loan officer he worked with was ill equipped to advise him.

Do not be fooled into thinking lenders and loans are a commodity. Choose wisely.