🚫 False Advertising in the Mortgage Industry: What You Need to Know

In today’s digital age, mortgage ads are everywhere—online, in your mailbox, on the radio, and even in your social media feeds. Unfortunately, not all of them tell the full story.

As a mortgage professional, I think it's important to address the growing concern around false or misleading advertising in our industry. These tactics don’t just harm consumers—they damage trust across the board. Here’s what to watch for, and how to protect yourself.

🎯 The Common Gimmicks

Many mortgage ads are built around attention-grabbing claims:

• “Rates as low as 1.99%!”

• “$0 Down, No Closing Costs!”

• “Get pre-approved in 3 minutes!”

While these statements may contain a sliver of truth under very specific conditions, they’re often designed to bait interest, not reflect a typical client experience. They rarely explain the fine print, like:

• Loan type requirements (e.g., ARM vs fixed)

• Points paid to get that rate

• Credit score and income requirements

• Higher closing costs rolled into the loan

⚠️ Red Flags to Look Out For

If you see an offer that seems too good to be true, pause and consider:

• Is there an asterisk next to the rate?

• Are they not showing the APR alongside the interest rate?

• Does the ad avoid mentioning closing costs, fees, or loan terms?

• Are they implying government affiliation that doesn’t exist?

In fact, some companies will use official-looking logos or mailers to make it appear as though they are connected with the VA, FHA, or IRS—which is both misleading and illegal.

✅ What Transparency Looks Like

Legitimate lenders and brokers should be upfront about:

• What’s included in the offer—and what isn’t

• The actual terms of the loan

• How your credit, income, and goals impact your rate and options

The truth is, there’s no one-size-fits-all mortgage. Every client brings a unique financial profile, and any offer worth considering should come with real context—not gimmicks.

🧭 Bottom Line: Ask Questions

If you’re unsure about an offer you’ve seen—or if it doesn’t quite sit right—reach out to a trusted mortgage professional. We’re here to answer your questions, review any mailers or quotes you've received, and help you make an informed decision.

Your home is too big of an investment to make based on a flashy headline.