NJ First-Time Home Buyers


Educating First Time Home Buyers About Misleading Information on the Internet

Educating NJ First Time Home Buyers about Information on the Internet

Last night I had the privilege of spending a little over half an hour on the phone with a first time home buyer. Initially I wasn't overjoyed at spending time with a client at 7:30 on a Friday night, but the reality was that I ended up having a good time helping a young couple understand the home buying process.

NJ First Time Home Buyer QuestionsThere are various programs available (which can be confusing even to someone in the business). Locally in Gloucester County and South Jersey there are several loan programs that first time buyers can take advantage of.

In this particular case this buyer had done a good amount of research on the Internet. And so it makes sense that they came across the same bogus websites that I come across when doing research: The websites that offer programs, incentives, and other options that DON'T EXIST. It is no wonder why many first time buyers are so confused; Even when they do study up and research they are bombarded with misleading, inaccurate, and even blatantly false statements.

Why do some websites and lenders mislead and even lie on their websites?

There are three main reasons I have found these misleading websites exist:

  1. To "up-sell" a buyer into something they "qualify for" (As the case in offering SUPER LOW rates)
  2. To sell ad space for other businesses (These sites often just get you there in hopes you will click on an ad on their page)
  3. To sell a buyer's information to a company that actually is a lender. (A lead generator site)

It is rather simple - they want "the phones to ring" so they can sell people on something. Some websites will pull people in with the right "keywords". Some of these websites will offer just a little information and THEN SELL OFF YOUR NAME AND INFORMATION TO REAL LENDERS, at times without the home buyer having any knowledge of this. Working with these websites is a roll of the dice at best!

Even with the great amount of regulation taking place in the mortgage industry, there are still some screwballs out there. As an experienced lender I can not emphasis the importance of working with a local NJ First Time Home Buyer Informationlender. I will be the first to admit that I have no idea what first time buyer programs are offered in other states (Other than NJ and PA). And I can guaranteeyou that someone outside on New Jersey can not offer you programs that a New Jersey based lender can offer you. (Not even all NJ lenders can offer the same programs, such as the case with many NJ first time home buyer programs.)

When it comes to buying real estate, the phrase often used is location, location, location. Many people don't realize that when it comes to choosing a mortgage company and a loan officer, the phrase location, location, location is just as important.

If you specialize in first time home buyer programs in other states, feel free to contact me. I often meet buyers that I can not help in many other states.


Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.

Call direct @ 856-419-3561 | Subscribe to Steve's blog via e-mail

Comment balloon 11 commentsStephen Kappre • February 06 2010 09:26AM


I'n my experience I am in 110% agreement

Posted by Andrea Kappre, New Jersey Realtor, New Jersey MLS, Homes for Sale (Keller Williams Hometown) about 10 years ago

I also have to agree. Very informative post Steve! Enjoy your weekend! :)

Posted by Jackie Connelly-Fornuff, "Moving at The Speed of YOU!" (Douglas Elliman Real Estate in Babylon NY) about 10 years ago

Andrea :)

Jackie - Thanks, you too.

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 10 years ago

Steve - It is a shame there is so much misinformation out there on the Internet !  No wonder everyone is confused and there can be a lack of trust sometimes !

Posted by The Somers Team, Delivering Real Estate Happiness (The Somers Team at KW Philadelphia) about 10 years ago

Chris - When the Realtor had sent me the links the client was researching on, I thought to myself, goodness no wonder why people can have such a hard time!

Posted by Stephen Kappre, Helping You Home (KW Hometown) about 10 years ago

This will never change. Even though there are laws regarding advertising rates and payments, nobody is actually monitoring this.

Posted by Eric J, Dream Home Financing (Eric J - Dream Home Financing) about 10 years ago

Who you choose to be on your "Buyer Team" is critical. I had a sad case where a buyer went with an "online rate" that he was quoted - never spoke to a real person for weeks, just emails, and the response time was sometimes days. He ended up with back end fees that were way more than any of the reputable REAL loan officers in the area, and he got burnt. Local, REAL, experts in all fields of your transaction are critical.


Posted by Sheldon Neal, That British Agent Bergen County NJ (Bergen County, NJ - RE/MAX Real Estate Limited) about 10 years ago

I have NEVER, I repeat NEVER had a loan close on time when the buyer opted to use an internet lender.  There is NO accountability. And trying to get them on the phone!!

A lot of National lenders will not even do business in our state, so I tell buyers the #1 question to ask is "do you have a license in the state of ALabama".  That knocks most of them out.

Buyers NEED a professional who knows their stuff and how to make the transaction as smooth and comfortable as possible.

Posted by Toni Bird (Coldwell Banker Preferred Properties) about 10 years ago


All I can comment on is that it is so true that many lenders out there use very deceitful tactics to drive traffic. 

I am hoping and I use the work hoping lightly that some of our new regulations will change this.

Great Post. 

Posted by Gary Miljour, Mortgage Originator NMLS Licensed in AZ and NC (American Financial Network, Inc. NMLS#207208) about 10 years ago

This is why buyers and sellers need real estate professionals to help them.

Posted by Rosemary Brooks, The Mother & Daughter Realty Team (BMC Real Estate - 209-910-3706) about 10 years ago

This is so so true and a shame that there is so much misinformation out there.  With virtually any topic, you can find a dozen incorrect websites for every one that has the right information.  It's even scarier when researching medical conditions!

Posted by RJ Baxter, 303-670-0137 (Fairway Independent Mortgage Corporation) about 10 years ago

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