Mortgage broker asking for earnest money

[Paula B]

Is it normal for your mortgage broker to ask that the check for the earnest money be made out to them? My boyfriend is in the process of getting a home loan and his mortgage broker asked that the check for the earnest money be made out to her. I thought that the earnest money deposit was always made out to either the Title Company or Escrow Company. The check has already been cashed and I asked my boyfriend to get a copy of the front and back of check so we can see if she endorsed it and deposited into her own personal account. I've finally convinced him that he needs to pull out of this deal because her high pressure tactics seem shady and unethical. Every time he calls to withdraw, she finds another way to convince him to purchase the house. At one point she told him to just go through with the purchase of the house and she will buy it back from him two months. Any advice would be greatly appreciated because my boyfriend is not listening to me.The house that he is purchasing is a hud home and the title is held by the Secretary of Veterans Affairs. She's an actual mortgage broker and is only representing my boyfriend but if I'm not mistaking, with a mortgage broker they usually shop around your application to numerous lenders until they can find the best lender who will provide the broker with the best incentives.

[Alfred]

Hi,It's quite normal. But you need to be sure of the credentials of the mortgage broker before handing out the check. Good luck!

[Tara W]

No, that is not typical. The funds should be held in escrow. Is there an realtor or real estate broker involved in this deal? The biggest red flag is that the broker is offering to buy the house back in a few months- that doesn't make any sense.Who is the record owner of this house? Is this house in foreclosure? Sounds to me like there is something going on behind the scenes, and this transaction is not on the up and up.

[Mano P]

It is very normal..A mortgage is the biggest transaction of your life. Everyone knows this. So it's surprising how many people go into it without taking any kind of mortgage advice. As a result, many people end up paying far more than they need to.So yes, generally it is a much better idea to look for mortgage advice before going for a mortgage. But the problem is that the quality of mortgage advice that's available varies wildly from one adviser to another.