online lender or scam???????????

5 Replies

I was checking out online lenders and kept seeing these guys ONE TRUE LOAN with crazy low rates. They currently will do 4.35% when rocket is at 4.75 and my local guy is at 5.125% for a $40,000 cash out refinance in Oregon. Are they a scam has anyone used them? they have 8 reviews on google and look good on the BBB. Just not sure with rates that low my red flags are going off. Any help would be great.

@Scott McGill Have you spoken to them over the phone? If not, I'd recommend that you have a conversation with them and voice your concerns. If they are a legitimate operation, they'll be willing to disclose how their business operates. Google reviews can easily be faked and I'm not sure BBB rankings carry much weight for these type of lenders.

That's a rather large difference in interest between One True Loan and your local lender, but there is a lot of value in having that local relationship - especially moving forward into the future with new possible deals.

@Scott McGill , I can't speak for One True Loan, but I did have a similar experience with an online lender. 

Last spring, my local guy was quoting 4.25%. Navy Fed said they could do 3.75%. Then I bankrate it and find a lender that said they could do 3.25%. 1% lower?! How is that even possible? They had way more than 9 reviews though so I figured I'd give them a chance. Well, they closed the loan in 60 days and it was not easy. As a REI my finances scare a lot of banks and this was a VA loan over the cap on new construction. I wound up paying 1/8th of a point to extend the rate lock since I was shopping so far in advance, but for that they extended the lock and brought cash to close!

Bottom line, it could be legit.