The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: El_Viajero on April 28, 2020, 08:19:30 AM
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Well, that's my experience. I started a re-fi through them last year because of the MMM recommendation. It was a nightmare.
I did their rate finder thing. I found a rate and a lender I wanted to go with. I filled out the application. Then I was contacted by the lender (not Credible). The lender wanted me to apply for the loan I'd "inquired" about. I said I already had. The lender then informed me that the rate I applied for (the one displayed through Credible) was not available or even possible.
I contacted Credible about this. They said they'd look into it. They ended up sending me a more formal quote with a different rate that wasn't as good. Still, I figured it was good enough, so I went ahead with it.
Lots of time went by. I called a few times trying to get an update. I was always told I'd get a call back. I didn't get one for weeks.
Finally, a dude called me. He said they needed more documents. I sent them. A couple of weeks went by. A more junior person contacted me via email. She needed more documents. I sent them. Later, she requested more documents. I sent them. This happened maybe four times; every time it happened, it started with an unclear email that required a phone call on my part to ensure I understood what was being asked.
Then they sent me a new quote with a higher rate – the third quote I've gotten at this point. At this point, it felt like a giant bait and switch that had unfolded slowly over two and a half months and required a notable amount of labor (chasing down arcane documents) on my part. I sent the loan officers an email and politely told them to pack sand.
Then I contacted a local mortgage broker (the same one I'd gotten my first mortgage with, incidentally). We had a brief call and he sent me a quote. I liked it, so I filled out an application. They asked me for documents one time – waaaaaaay fewer documents than Credible's underwriters were requesting. A few weeks and zero headaches later, I was signing closing documents. The broker sent me a thank you note and a Chick-Fil-A gift card.
Maybe others have had better luck with Credible. My experience sucked. If this is their typical MO and I were MMM, I'd be embarrassed to recommend them.
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Unfortunately, I'm in the middle of the same experience.
My frustration is not with MMM for the recommendation of Credibe, or even Credible, but with the lending institution.
For those unfamiliar, Credible works by gathering your general information, then scraping available lenders to get estimated rates. Credible presents the option to you, and you choose the terms and lender. Once you choose credible creates an account for you, and transfers your profile data to partially complete the application. Now you are dealing with a lending institution. If they are terrible, then it isn't MMM's fault, or even Credible's fault.
For example: I want to refi some student loans. I read about Credible on MMM and am trying it. I entered data to Credible about 7 weeks ago. Credible presented several refi options. One was with PenFed for 3.45% for 8 years. I wanted that, so Credible created an account for me and gave me the login and password. I opened my account with PenFed. Of course PenFed is a bank/credit union. They don't originate loans. PenFed then shipped me to Purefy, the actual lender.
MMM -> Credible -> PenFed -> Purefy
Purefy has been as OP described, or worse. My "rep" didn't answer phone calls, emails, or texts. The only way I got information was by calling the main line and waiting on hold until someone answered. Once I was talking with someone they told me they needed more documents, then more documents, which I sent. Finally, they said 50% of my income didn't qualify, so they would offer me 3.96% for 8 years.
I await the final paperwork. It is not 3.45%, but 3.96% is silly cheap money. I have looked around a little bit more, and can't see anyone else even teasing a 3.45% rate, so I'm moving forward with the 3.96%. Frankly, I wish I could borrow more at that rate. I'm willing to do the back-end work to enable me to refi to that rate.
After reading the OP post, I'm going to call my credit union and my mortgage broker to see if they can meet or beat the rate.
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For those unfamiliar, Credible works by gathering your general information, then scraping available lenders to get estimated rates. Credible presents the option to you, and you choose the terms and lender. Once you choose credible creates an account for you, and transfers your profile data to partially complete the application. Now you are dealing with a lending institution. If they are terrible, then it isn't MMM's fault, or even Credible's fault.
I actually was dealing with Credible directly when I had these problems. To be clear, one problem was the actual lender: The loan underwriters were requesting boatloads of documentation. That's not completely weird when you're getting a mortgage, but I was getting requests for batches of documents over and over and over again – enough that you'd think they couldn't possibly be missing anything they needed, only to be presented with another request for LOTS more stuff the next week.
The other problem definitely was Credible. All of these document requests were being passed through Credible to me. The loan officer was a very poor communicator and sent numerous emails that didn't make sense or lacked specificity. Pretty much every time I received a request, I had to call the Credible offices for clarity. They're not very good about being available for calls, so I'd then have to wait around for a response. I usually had to wait a few days and call back because they didn't respond to my messages.
I'm not saying any of this is MMM's fault, per se. But if my experience is a common one, I think he should reconsider the recommendation.
I'm also sorry to hear you've been frustrated with your experience! Yes, by all means, try a local broker or a credit union. It'll probably be easier.
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I'm in the middle of the same thing as OP. Lots of delays and extra documents requested.
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I done loans for 4 new purchases and 3 re-finances.
For a new purchase, I typically use a mortgage broker that collects a healthy commission fee. I want them to be invested to close and get paid. For this reason, I avoid credit unions that do not allow commission fees for their loan officers.
For a re-finance, I go with the cheapest rate and origination fees. This tends to be credit unions. I am not as worried about the deal falling through. I have time to fill out more paperwork and jump through more hoops for a lower cost.