who can access your credit report-long

My husband happened to come in contact with a mortgage company in his bidding on an office park paint job.

He told the owner that he was interested in fixing and flipping and wondered if they had loans for contractor’s to buy a house and have money for the repairs while rehabbing.
The owner put us into contact with a gal in his office, that operates under a real estate company and builder, etc.

First, she had us look at 2 projects that she had on fixing with us giving a bid for the repairs. The first needed in excess of 50K with major foundation problems, that another contractor told her that he could mudjack the foundation and it would only cost 20k to rehab and make “Cherry” to sell for 250k. Her purchase price was 132k on 1 acre. She did not like the fact that we told her permits were required and she was not going to replace windows. This house built in the 1940’s.
The next house was a pretty easy fix and flip. Carpet 3 levels, new vinyl, tile, counters, int/ext paint. Gave bid for 10.5k. Said it was too high. I think she is looking for flunkies to do the work cheap, we told her we would not put our license or reputation on the line for a permit job without pulling one. I informed her that I had to do my due diligence and she said, "Don’t wait too long, because I have many more people willing to do this with us.

So, the next thing she pulls out a loan application and tried to get us to sign these loan papers and told us she was going to do a “soft pull” of our credit which would not affect our FICO. I was not comfortable with this but my husband gave our birthdates. She calls later that night, saying she got his credit report, but could not get mine because I had some alert on my credit. She wanted my SS#. I refused to give it.

My questions are:
How could she pull our credit with out our signatures?
Could she have found our SS# through public records?
Is this fraud?
What are the criteria for picking a mortgage broker?
Could I do better by getting a HELOC on my equity?

Our house is worth about 170k, we owe 49k. She tells me that she can get us a mortgage for 140k @7.5%. I tell her that is too high since I have a 10 year @6%. Then she says she can match it.
She tells us that there are very few deals out here and she has 20 people looking on a daily basis for deals and she thinks that we could do a deal and she always does the deal so she makes 15k and we would make 15k. Of course, she is also a real estate broker, so she would be listing and selling which I assume means she will be making a commission for selling.

I did not give away that I have some prior knowledge of real estate and the like, so I started doing research. The mortgage company is not a BBB member and has an unsatisfactory rating. The women has been in California, Arizona and Colorado but does not own a home here. There is no record of any length and she has just incorporated here.

Every thing in my gut says run fast and far because they are predators. But these people keep calling and say, "We have good news for you. We found information on the 4-plexes you are interested in. (I gave her the address of a bank owned 4plex that I just found) and then they say they have all their ducks in a row to finalize our loan. My husband does not want to burn any bridges. He wants to do one deal with them. I am sure it would be a mistake.
My impression is they are going to use our money and labor and the house will be in their name and then when we sell we will get 15k. Am I missing anything else? What else do I need to ask before my husband does something silly.

Then she tells me she is looking for a new assistant and realtor and would I be interested.

Any suggestions would be appreciated.

Thanks for your consideration.
Sharon

Wow, 7.5% is a pretty high rate. Do you have some additional info on how your credit is? For the best credit, you may be able to do better than 6.5%, if there are issues, it could be higher and maybe even 7.5% is actually a good rate if you have any mortgage lates.

Anyway, it’s real easy to pull credit, all that’s need is social and a birthdate which is probably what your husband provided, but he probably didn’t give her your SS number so she wasn’t able to pull credit on you. No signature needed. I’m not sure you can actually do a soft pull on a credit report without affecting your score. It is true though that she could pull your credit and it won’t affect your score. Check out myfico.com. Your credit pulls kick in 30 days after your credit is checked, but the bank can go by the original score that was pulled which doesn’t take into account the initial pull. Also you have a 14 day window where multiple credit checks only count as one pull. Typically that will lower your score by about 3-5 points.

As for checking out a mortgage broker, I wouldn’t bother with BBB, the best place to check to see if they’re legit is to ask for their license number and check it to make sure they’re licensed to do loans in your state. You should also shop around with a few brokers to get the best rate. Usually the ones that advertise all the time don’t really have the best rates as they do have to pay for all that advertising.

You probably won’t do better on a HELOC because those are typically tied to the prime rate which is currently 8.25% The best I’ve seen is 7.25% if you borrow more than 100k. Of course if rates go up, that rate would go up also. I don’t think people expect rates to rise although it’s possible there may be a rate increase sometime in the future. Shopping around will probably net you a rate lower than 7% on a first mortgage.

Depending on whether you were going to go full doc or stated the 7.5 is not to bad. If you are going full doc then 7.5% is much too high. You should be looking for something in the mid 6’s. Now if it is stated then it becomes a whole new ball game because it falls into the ALT-A category where rates are a tad bit higher than conventional.

As for the mortgage company you were describing I did not even need to finish reading your posting before it became evident that you should not be spending any more time with these people. This has scam written all over it. If you or your husband gave her permission to pull your credit then she was legally allowed to pull it; even if it was just a verbal authorization then they did not break any laws.

One thing I am learning to do more of, and you need to do now, is LISTEN TO YOUR LITTLE VOICE that is screaming for you to run away. That little voice is usually right.

You feel something is wrong and have pointed to many things that seem very off. Could you be following the carrot they are dangling? Yes, by turning away from them you could miss out on something if they are legit, but I’d rather miss out when my little voice is screaming RUN than find out why I SHOULD HAVE ran but got screwed instead. Every time I didn’t listen I kicked myself… and said “I KNEW it” You seem to know what you need to do. Listen to yourself.

Maybe show this whole thread to hubby. Maybe seeing it through a different angle will show him what you are seeing.