This letter is to inform families looking to refinance or purchase a home using ameriquest to please shop before you sign
I am a former employee with Ameriquest that left an extremely high paying position with this company because they are selling an inferior product and honesty and integrity are two things you cannot have to succeed there. Dont let a smooth talking rep talk you into signing a loan with ameriquest until you shop around
Your rate will be okay after you are promised something better and your closing fees will be outrageous. You will always be charged 2 or more points which in the mortgage industry is horrible. What this means for you is every hundred thousand you lend, you will pay $2000 or more for every hundred thousand you borrow towards your closing fees. (ie 400,000 home with 2 points is an additional $8,000) then you have title fees and numerous other fees on top of this, making your closing fees even higher. They will tell you no big deal because the closing fees are built into the loan and you are not paying out of pocket. True, but by putting these closing fees into your loan you are financing the fees meaning if you kept the loan for the entire term you will pay double of what the orginal closing fees were at signing.
This company can help you if your credit score is below 600 or you don't have a high income or need money fast but do yourself a favor and shop around with your local banks first. I saw too many people who could have gone elsewhere settle with ameriquest because they were sold on speed, persistence and smooth sales persons.
Do not be sold on the speed in which they can close your loan. Its probably about a 1-3 weeks quicker at most then other companies can close. When they try to sell you on speed and convenience like no paperwork to be filled out ask yourself, how many refinances or purchases will i make in my lifetime? Not too many so dont rush. You have 14 days to run your credit with as many mortgage companies or banks as you wish.in these 14 days you will only have ran your credit score once. The credit agencies group these as one inquiry, meaning your credit score will not go down much as a rep at ameriquest will lie and say it will. If they give you the line " your credit score will go down if you shop" you should immediately recognize this rep as liar because they all know you can shop in the 14 days as explained above.
If you are refinancing and they offer you a higher rate then you currently have you probably dont want this loan. Your better off getting a home equity loan for the money you need and having two mortgages. If you refi at a higher rate you are also resetting your mortgage back to year one. The significance of this is in your first 5 years you are paying pretty much interest only and no principal.
Good luck
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