So you have bad credit the broker told you? He doesn't return your phone calls and he wants you to do this or that and he can MAYBE get you a loan. Then finally he "had to make a few calls and I got really lucky here" and here is this loan for you and he is sorry but what can a guy do ya know? Here is the skinny on you people with bad credit: Brokers buy LEADS online from the forms you fill out. Those "a" credit people.......they are like 15 bucks a lead to us brokers. You "subprime" people? you are up to 50 dollars a lead! Why is that? because an "A" borrower knows he has good credit and will shop our buts all around the block. The "subprime" borrower is just looking for the first yes they can get and they won't shop us. We can exagerate your credit scenario and charge you enormous amounts of money on the front and on the back. So while conforming credit is easier to process, they are harder to stick with a broker. Our revenues are lower and our service has to be higher. My advice to you? Demand the respect of someone that is about to make a lot of money on you and shop him just like a conforming borrower would! As a matter of fact, shop even more because while there are 20 programs for "a" borrowers there are 1000 programs for a subprime borrower. Do you really think that your broker knows all the programs and will offer you multiple scenarios? Find the three or four brokers and get them to give you GFE's. They will package it all differently but you need to see choice. If a broker sugests an ARM loan make sure to ask why...and ask what steps are needed in the next 2 or 3 years to get you in shape for the next refinance to a fixed product. If he is puzzled....then he didnt look at your future........and you might question weather or not he really has YOUR best interests in mind. Just a thought . Shop SHOP SHOP
