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We have applied for a mortgage and are in the final stages of obtaining a loan. However, the mortgage officer we have at the bank is trying to wrongly charge us for our rate. We feel like we are being manipulated and forced to sign off this rate in order to close.
Here's the story--- Our closing date was supposed to be tomorrow, but we still haven't met with the co-op board because the bank delayed the paper work. I am not sure what this means from a legal perspective as far as our contract with the seller goes. The bank should finally have all documents to give us a proper commitment letter now. The only thing that may be lagging is the new good faith estimate and truth in lending docs the bank just sent us that request a signature. However, the mortgage officer lied to us--the fees she sent us for the rate are approximately $1000.00 more than we agreed upon on the phone. We don't have any concrete proof on that specific conversation as it happened over the phone. The banker did send us a letter stating our rate but it has no mention of how much we were paying to get it. I do have some documented proof of several lies that she told us regarding the rates on other days. We feel like if we want to close, then we may be forced just to accept this overcharge. It's not like we can obtain the loan money from another bank at this point. Is there anything we can do to fix the problem without delaying the closing any further?
Thanks for the help
Either you play ball with the bank, or pull out and start a new game with another bank.
how large is ur loan? the rates change daily. ur credit/charge can change according to market too. i am not saying the loan officer is not cheating, but u need to be sure before making such a claim.
No, if you want to attempt to close you have to keep moving forward. Sounds like it is taking a much longer time than expected and it can easily be another month before you close. Often you have 30 days from the closing date as a legal cushion but anything else would have to be negotiated. You do not want to lose your deposit and the seller doesn't care what your mortgage broker is doing as they just want you to get the mortgage, complete the board package and hopefully get approved after your interview(assuming they call you for one). You have to act in good faith and complete this process, now the sooner the better.
Yeah, lots of mystery fees appear at end of process. Move on.
I've never had any mystery fees appear at any part of the process. That's the whole point of the GFE.
monas, why is there a new GFE?
It's hard to understand exactly what has and has not happened, but if you don't even have a GFE (let alone a commitment letter), you wouldn't lose much time starting over with another bank. If you go that route, I would definitely get recommendations for specific bankers, not just banks.
Monas, are you discussing a "good faith estimate"? If it's that, then it's simply an estimate.
Most of the charges itemized on the GFE either cannot increase or are limited to a 10% increase. See top of page 3 at http://www.hud.gov/offices/hsg/ramh/res/gfestimate.pdf
They are not on the gfe. Thus the mystery. I had same issue, looked into them only to discover all perfectly normal. That is why banks are like casinos.
I always go for the gfe, especially when I'm traveling and no one will know.
You can change banks but unfortunately fees are added and changed all the time honestly $1000.00 is not that much unless its a 100K mortgage
Keep in mind that if you change banks and have already paid for your appraisal, you're not going to recoup that cost either...
The entire point of the Dodd Frank law is that no mystery fees can happen.
You don't say anthing about your original gfe which had to be issued to you. If there's a new one then it's because a valid changed circumstance has happened.
I would move to close quickly if thats the apartment you want. $1k more is a small amount to pay relative to what you are trying to achieve i.e. lock in low rates and property prices are going up and up for now.
Tnx all for the advice. This is really sad that the banks can just manipulate people for money like this. I was wondering why would a bank be so sleazy and hurt and distress people just to gain another grand. Then I realized for every 100 people they cheat a grand from = $100,000.00. That can add up pretty quickly.
To clarify for the first GFE we were on it had a float rate. Now we just received the rate lock confirmation and the officer put the wrong date on it with a higher rate on it. When we said something, the lender said "there's nothing I can do about that, but I will give you a credit after closing." Like I believe that after being lied to a million times. Let's pretend that its true and the lender would give me a credit, why wouldn't the lender just fix it now? What benefit is there to that--is this because of the 10% rule on the GFE?
P.S. What are the unexpected fees that may be added during closing?
P.S.S. Looks like we may be pushed over the 30 days. What happens then in terms of contract and deposit?
this is why the repugs and schumer want to neutralize eliz warren.
mystery fees, imposed when home-buyers need to close, and cant just move on, are a right of our banks. how dare that bitch interfere with this?
sounds like the bank has a clamp on your private parts. they're good slipping these on people, and exploiting.. if you dont switch banks, and are resigned to paying the current mystery fee, memorialize in an email your experience and surprise about the fee. and put on the record that you are confirming what your understanding is of all fees, with a request that the banker reply immediately if you misunderstand.
whenever you speak to a scum banker, email immediately following the call:
"this is to confirm our conversation of 1036am 8/5/13. You indicated that the rate......and all fees.,......"
"If what I write here is not consistent with your understanding, pls contact me immediately....."
thanks yikes. do you know what other fees the bank may tack on at closing?
What bank would you recommend for a first time home buyer? We just signed a contract for a coop in Jackson Heights.
Sorry, I can't offer much help. But I just want to say that it is stories like this that made me insist on email correspondences, no matter if it is communication with my lawyer, the mortgage broker or the board. Everything is in black and white and traceable! And there wouldn't be any miscommunications either. Mortgage lenders always say that it is easier to explain things over the phone, but I still insisted. It really is for the protection for both sides, I feel.
i cant resist:
hburg's lifestyle is, in its entirety, about his complete and total obsession with streeteasy, and those who post here. he catalogs any little tidbits he can, on those he is so intrigued with, and imagines much more. and that comprises the entirety of the sad little world he inhabits.
the upside is that his shit is so uniformly useless, there is little incentive to read him, and respond.
today i made an exception. now i will return to my life, one infinitely rich when compared to that of our poor little hburg.
hburg, it's very impressive that you arent driven crazy by the fact that, for most here, SE is but a pimple they poke at now and then--where, for you, it is your life. and you ooze sebum endlessly.
you are one strange, freaky troll.
I believe your closing costs can't be more than 10% of the GFE third party estimates; however, your rate is not guaranteed by the GFE until you actually lock it.
i did this approach with emailing everything with my loan officer at Bank of America. he lied or misrepresented the rate which he agreed to lock at. i had documented evidence that he stated he would lock the rate which he did NOT do. anyway, the loan officer stated he made a mistake and then B of A would NOT agree to their original deal. anyway, B of A stated it was a mistake on their part. Nothing happened and I refinanced with another bank. Of course, I could do this bc it was a refinance and NOT a new house purchase. Documentation is definitely key and doesn't hurt but may NOT help you.
These guys at BAC are horror shows. Why does anyone use them?
nope--last week was the once-per-year time when i acknowledge your pathetic existence by throwing you a bone.
today i couldnt resist doing so again, before anther year went by. and now, again, surprisingly, i am doing so.
so maybe this year you'll elict 10 minutes of my consideration and response vs prior years where i might have devoted 2 or 3 minutes to sorry you? who knows? who cares? i certainly dont.
if there's any being out there to whom the expression "GET A LIFE" would apply, it's you.
Does anyone know the legal time frame for receiving a rate lock confirmation?
why did you post as greensdale and then stop?