This can be part of a recent problem with the credit bureaus selling their information upon an inquiry, its called a TRIGGER LEAD...If a mortgage company pulls your file, your info may go to many other brokers who have paid for that information from the bureaus...Do a Google search for more information on TRIGGER LEADS...Other reasons are that some of the places you apply will sell you application to up to 4 brokers as well as to other lead suppliers who will then resell them to up to 4 other brokers...There is a way to avoid this, its called "opting out"...Again google for additional information on how to do this...Some loan officers are not very good at finding new customers. They don't get many referrals, often because they don't treat their customers well enough that those customers will refer their friends and family members. They don't provide enough valuable information on their websites so that visitors would know if they are knowledgeable and helpful.
Instead these loan officers pay money for your personal financial information! And the credit bureaus sell it to them!
These loan officers are not counting on referrals from you because they usually don't get them any way. So they are less concerned about treating you well than getting the sale. This leads the less ethical of the group to do such things as quote rates lower than they can get for you. They figure that when they eventually tell you that you don't qualify for the quoted rate, you will be so far along in the loan process that you won't be able to switch to another loan officer.
There are many lead generation companies out there that promise to help you out by letting lenders compete for your business. These types of lead companies will sell your information to however many mortgage professionals will pay them for it. Sometimes your information could be sold a countless number of times and your phone will ring for months after you applied with the lead company. Many times it is better to simply apply with 1-2 separate lenders individually that to go ahead with any of these types of lead companies that promise to let lenders compete for your business.
Be wary of lenders who place a sense of urgency and require you to make a decision-and deposit- immediately. A reputable lender wants you to make the best decision for yourself. That is how reputable lenders earn one's trust and business.
Despite advertising claims to the contrary, these lead companies do not care if you get the best mortgage deal for your financial situation. They just need another name and number to sell for $35 to as many high pressure salesmen as they can. If you want lenders to compete for your business, check with your real estate agent, your accountant, your financial planner or even your friends. Then make some calls to a few different lenders. You will do a much better job of finding lenders who will really care about your needs and desires because they want to refer other people to them. They won't just close quick and move on to the next lead.
