My wife and I are new at purchasing a home, and we explained that to MIKE MOORE, the owner / broker when we went to see him early in February, 2000. He assured us there would be no problem and asked us to fill out a preliminary application for loan pre-approval.
We did that, and he produced a "Commitment Letter" stating that we had been pre-approved for a conventional, 30 year loan on a non-designated property. Mike told us that this letter would give us clout in making an offer on the property of our choice.
Satisfied that we had someone we could trust, we did the dumbest thing we could possibly do. We gave Rapha Mortgage Group a check for $275.00 which at the time was called a "Loan processing fee." He told us it would be part of the closing costs.
When we took the "Commitment Letter" to a realtor, they took the letter but noted to us that the letter did not really guarantee us a loan, and also noted to us that the RATE of the loan was ESTIMATED at 10.500%. The very first realtor we took it to asked us if we had applied for an FHA loan which would save us 2.5% or more and shave THOUSANDS of dollars off the life of the loan.
So I called RAPHA MORTGAGE GROUP and asked the owner/broker Mike Moore if we qualified for an FHA loan. Without directly answering my question, he assured me that I was doing wonderful things with my money by going with this loan instead. (we learned later that he steers people away from this because he is not qualified to handle FHA insured mortgages).
Hoping to save money, I called another broker and qualified for an FHA loan at better than 2.5% LESS than RAPHA MORTGAGE GROUP and we are now purchasing a nice property.
I called RAPHA to get a refund and I was told that there was NO refund. This came from the owner / broker MIKE MOORE through his assistant DEBBIE at the Grapevine office.
I called several other mortgage brokers, and their standard loan processing fees range from $30.00-$60.00! RAPHA's standard loan fee is $275.00 !!?????
At RAPHA we barely took an hour of their time, and it cost us more than lawyer's fees per hour, and got NOTHING from it but a handshake. This is stealing money! We were never told this was non-refundable, never told we could save money (1,000's!) by qualifying FHA, never told that the commitment letter only meant that if we changed our minds and went with another mortgage broker that we would be fleeced of our money! Shame on you RAPHA and MIKE MOORE!
Let the next buyer beware, learn from my mistake: NEVER, EVER, EVER give this company money without calling several companies or brokers first! [email protected]
- Jim - JR RIP-OFF REPORTER
Rip off revenge is requested! Please help me get my money back!