🚀 go-pugleaf

Ask, "Are you licensed by the California Department of Real Estate?"

99% chance s/he will say something like, "Of course WE are licensed by the
DRE!"  --to which I would respond, "Well of course there's a broker
affiliated with your outfit, but I am asking if *you personally* are
licensed because anybody who re-fi's my house better be!"

Check 'em out online at http://www.dre.ca.gov/licstats.htm  It's EASY!

A DRE license is not necessary for all loan origination, but most of the
people doing it don't know when it is or isn't.  There's an alarming amount
of loan fraud going on (forging signatures of licensed loan officers,
notaries, etc.).

Check 'em out before giving your social security number! With you SSN they
lock in your interest rate with a particular lender (bank) and then you're
stuck with that broker unless you find one who can lock you in with a
different lender. Resist pressure until you check them out!

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If you really like to make people squirm, say, "I understand that your fee
is $1500 [or whatever it is] and that you charge no points on the front, but
how many points do you make on the BACK, i.e., what's your rebate from the
lender?  I won't sign "docs" until you fax me a copy of the interest rate
lock-in confirmation."  That's ONE place you won't be hearing from again!

They make their money two ways:

1)  Fixed fee (and possibly points "on the front," i.e., that you know
about); and

2)  Rebate from the lender (i.e. points "on the back" that they have no
intention of telling you about but always show up on the interest-rate
lock-in confirmation).  About one (1) point here is fair; they have to make
their money somehow --but no more than that!

If you are already in the process, demand a copy of that lock-in
confirmation or else refuse to sign "docs"!

Hmm, I wonder why someone keeps canceling this post?  :-)  Save it before it
disappears again.