The housing market in Charlotte NC and surrounding areas is doing quite well.  We're contrary to what goes on in the rest of the country, in general, and are enjoying an uptick currently.

However, the shakedown that's happening all over the country in various and sundry places does affect us, in relocation contingency offers, the amount of money folks have to put down based on what they sell for in other areas, etc.  And most recently, I'm seeing it in the behavior of lenders.

No matter how hard I try to educate buyers on the advantages of using local mortgage lenders with local processors and knowledge of the local market, a lot of them are lured into the GREAT DEALS! offered online and over the television.  When all is said and done, and we make it (IF we make it) to the closing table with that mysterious lender, my folks usually tell me they wished they had listened to me in the first place.

I had a call from a client today, who purchased her home in August of 2006.  So not even a year ago.  The lender who wrote her note has been badgering her to refinance.  Told her he can save her $100 a month on no closing costs.  But when she asked him for information in writing to go over with me (yes, I go over refinance paperwork with my clients-who else are they going to ask that will have a little knowledge and no vested interest in the deal?).  All she wanted was a good faith estimate.  Seems that the lender couldn't produce it.  And all of a sudden, he was talking about closing costs (which OF COURSE he could roll into the note) and that her payment wouldn't change.

She was in a panic.  Afraid that she needed to refinance because of changes in the market.  Afraid that by even talking to this 'gentleman' (I use the term quite loosely), she was obligated to move forward.

Of course she isn't obligated.  And thank heavens she called me (I'm not patting myself on the back, I'm patting her on the back!  I wish more folks knew that it's okay to call and ask questions after the closing!).  There are very few reasons that someone would need to refinance within a year of taking on a mortgage. Heck, most lenders don't want a note that hasn't been seasoned any longer than that!  It's apparent to me that he was just looking for a sale.  Not finding any new clients, he had turned to his old book of business and was hammering them for all he's worth (not much, if you ask me).

She's fine now, going to wait a while before going down the refinance road, waiting until the numbers make sense.

But then in today's Charlotte Observer, there was an article by Kenneth Harney about the aggressive tactics many lenders are taking, the whole trigger list controversy (which has been visited on AR in the past).  I didn't know that we as consumers have a way off the trigger lists.  Did you know this?  That once you apply for a mortgage, even if it's with Billy Joe Bob down at the credit union, your personal, private information is sold for a pretty penny to every lender with a credit card.  But you can opt out.  www.optoutprescreen.com or 888-5-OPTOUT.

Might want to hop on it.  Especially if you're in the market to buy a home in Charlotte NC or anywhere else...or if you're thinking to refinance your note...or just might want to do it down the road!