I paid $400 for a loan pre-approval that fell through after 3 weeks

Paid a local broker in Spokane $400 for a pre-approval on a commercial property loan, but he never told me about a zoning issue until after I'd already wasted time and application fees. Anyone else run into lenders who hide the real problems?

2 comments

2 Comments

karen_west5926d ago

$400 for a pre-approval is ridiculous honestly. I've noticed this same pattern everywhere now, not just loans. People selling services totally leave out the bad parts until you're already committed. It's like buying a used car and they don't mention the transmission is shot until after you hand over the cash lol. Brokers and sales folks are all about getting that fee first, then the real problems magically appear later.

gavin_kelly9126d ago

Yeah the "$400 for a pre-approval is ridiculous" line really hits home because that fee should cover the basic homework before you're out any real money. Next time ask straight up for a written list of all potential red flags before you pay a dime. I learned the hard way too, now I make them give me a three day window to back out if something comes up, or I don't pay until they verify the property is clear. Your broker should have caught that zoning issue in his first five minutes of googling. If they push back on that, you know they're just fishing for fees.