The Truth About “Too Good to Be True” Mortgage Estimates
The Truth About "Too Good to Be True" Mortgage Estimates
By Ed Stojancevich | SouthShore Region Mortgage Group
There's something going on in the mortgage industry that I can't stay quiet about anymore - and if you're thinking about buying a home, you need to hear this.
Recently, I've been seeing an alarming trend from certain lenders and loan officers who are intentionally manipulating loan estimates to make their numbers look more attractive to unsuspecting buyers. They're playing with your property taxes, homeowner's insurance, and per diem interest amounts just to make it seem like you're getting a better deal than you really are.
What Are They Doing?
Some loan officers are intentionally lowering estimated:
- Property taxes
- Homeowner's insurance
- Daily interest charges (per diem)
- Escrow deposits
They're doing this to make your monthly payment look lower, your cash to close seem less, and to give the illusion that their offer is “better” than the competition.
Why This Is a Big Deal
This isn't just a minor detail or a simple mistake - it's deception. When lenders knowingly provide inaccurate information just to earn your business, it hurts you. It can create closing table surprises, delay transactions, and stress everyone involved.
But even more frustrating? It gives the entire mortgage industry a bad name. And that's what really pisses me off.
I've worked in this business for over 18 years. I've built relationships with clients, Realtors, and referral partners based on trust and integrity. So when I see others cutting corners, it reflects poorly on all of us who are doing it the right way.
Why They're Doing It
It's simple: to win your business with flashy but inaccurate numbers. But if a lender really had your best interest in mind, wouldn't they give you honest estimates from the start?
What You Can Do About It
- Ask questions: Especially about taxes, insurance, and escrow.
- Request realistic numbers: A good lender uses actual data, not assumptions.
- Get a second opinion: If it sounds too good to be true, it probably is.
- Work with someone reputable: Local and trusted lenders are your best bet.
Our Commitment to You
At SouthShore Region Mortgage Group, we believe in doing things the right way. No games, no smoke and mirrors - just honest numbers, clear guidance, and real peace of mind.
You deserve to feel confident and informed every step of the way, and we're here to make sure that happens.
Final Thoughts
I know this post might ruffle some feathers, but I'm not here to win a popularity contest. I'm here to help people and protect the integrity of this industry.
If you have questions, if something feels off, or if you just want a second opinion - reach out. I'll show you how the numbers really work.