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Old 05-02-2013, 09:36 PM
 
3 posts, read 39,797 times
Reputation: 12

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Sorry this is long, but I feel I am in a bind.

So I am buying a house for around $350,000 from a builder. The real estate agent referred us to guild mortgage for a VA Home Loan. We signed our papers, and some papers on escrow and our rate is locked. Well the house was not completed in the time it should have. Now I am told by our lender guy that he is pushing the rate lock out and it cost them $1,400. We were told the house would be completed and everything should go fine, but we had a few things that came up on inspection. The builder hasn't even installed the appliances yet, but most everything else is done (but it we were told 3 weeks ago everything should have been done.)

My worry is that the extension of the rate lock will expire again. I asked the lender what the rates were as of today, and he said it did not matter. We get the rate we locked into. I was like well what if the rate lock expires and relock? He told me that we would get the one we originally signed for even though it could be lower today. I looked into another lender (which I did not tell guild mortgage) and the lender did not sound like he wanted to take away another's business, but since I was shopping around and called him he would see what I could get. With some rough numbers about credit score and how much we make he quotes us about 2.85%. We were at 3.5% with guild mortgage.

I hinted to guild well what if I looked for another lender and found someone who could do it for less?
He told me that would be bad for us, because he told me that we would have to pay them over $7,000 in fees. Is this true? or is he just trying to strong arm me? He also said that he had to hide things when trying to approve us and that he doubts we could get approved somewhere else. It just seems fishy to me, and I do not like the fact he is in a way threatening if we go elsewhere he will charge us $7,000. Plus if he is the type of guy who hides things (as he claims) to get a client approved, I could see the same guy lying about the $7,000 charge as well so he could collect.
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Old 05-02-2013, 11:31 PM
 
Location: WA
319 posts, read 1,841,901 times
Reputation: 139
Yes a lower or higher rate may definitely come with more fees. 2.85% sounds too low for a 30 year unless you are paying points (fees). Be wary of those rough quotes without getting the GFE, which outlines all the costs. Plus, some lenders just have more fees, such as a higher origination charge, or even tacking on a bunch of junk fees. Compare the entire thing.

For $1,400, I'd just roll the dice and not even lock, if that is an option (it should be). Sounds like your lender had you lock too early. Do some math on how much the rates would have to change / affect your payment for that to be a big deal. I would also be wary with the threatening. How could they charge you $7,000?

Unless you signed something weird, its not typical to have any penalty to walk away from a rate lock with a lender. Its just not good practice, as they have reserved a loan for you and could be out money / have it affect their future client's loans. Ask him what paperwork says you would owe $7,000.

I don't see how he could have hidden things. You should have an idea of if you are well qualified or not. With the rates you are quoting, sounds like you are. Are you working with a realtor? If so, I would get advice from them on an honest broker/lender and if you even have the option of changing at this point without pushing out your closing date.
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Old 05-03-2013, 12:14 AM
 
3 posts, read 39,797 times
Reputation: 12
I am not sure, I asked what the rates were as of now, and he said it doesn't matter.

I will ask my realtor. I just get wary. We contacted a builder who referred us to a realtor. The builder realtor and mine are different people, but work for the same company. Then that reality service works a lot with this mortgage company. They all pushing to get the house closed as fast as possible. I too would like to move in asap, but not at the expense not having the house done right. The faster it is closed the more homes they can pump and sell out for commissions.
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Old 05-03-2013, 01:31 AM
 
3,805 posts, read 8,681,393 times
Reputation: 4968
You are beholden to your present lender for nothing. And that's no way to treat a Veteran.

When you lock, you are "stuck" with the set of terms that existed at that moment in time. But it sounds like you are being threatened.
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Old 05-03-2013, 06:26 AM
 
Location: MID ATLANTIC
8,309 posts, read 21,184,903 times
Reputation: 9672
It's really difficult to parse out what is going on here.........I am going to guess this mortgage company is the builder's preferred lender and you only get the $7000 assistance if you use their lender. It's true, you are not obligated to use that lender. You need to sit down with another lender, show them your contract, get the quote in writing and then give the original lender an option to match (so you can get any assistance tied to the builder's lender). DO THIS NOW, waiting only hurts YOU and removes the opportunity to move.

There are quotes out there at 3.25% with the lender contributing back 3%+. There is no way you should be paying 3.5% in today's market.
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Old 05-05-2013, 02:19 AM
 
Location: US
23,409 posts, read 22,927,573 times
Reputation: 18254
Quote:
Originally Posted by Wchutcheson View Post
Sorry this is long, but I feel I am in a bind.

So I am buying a house for around $350,000 from a builder. The real estate agent referred us to guild mortgage for a VA Home Loan. We signed our papers, and some papers on escrow and our rate is locked. Well the house was not completed in the time it should have. Now I am told by our lender guy that he is pushing the rate lock out and it cost them $1,400. We were told the house would be completed and everything should go fine, but we had a few things that came up on inspection. The builder hasn't even installed the appliances yet, but most everything else is done (but it we were told 3 weeks ago everything should have been done.)

My worry is that the extension of the rate lock will expire again. I asked the lender what the rates were as of today, and he said it did not matter. We get the rate we locked into. I was like well what if the rate lock expires and relock? He told me that we would get the one we originally signed for even though it could be lower today. I looked into another lender (which I did not tell guild mortgage) and the lender did not sound like he wanted to take away another's business, but since I was shopping around and called him he would see what I could get. With some rough numbers about credit score and how much we make he quotes us about 2.85%. We were at 3.5% with guild mortgage.

I hinted to guild well what if I looked for another lender and found someone who could do it for less?
He told me that would be bad for us, because he told me that we would have to pay them over $7,000 in fees. Is this true? or is he just trying to strong arm me? He also said that he had to hide things when trying to approve us and that he doubts we could get approved somewhere else. It just seems fishy to me, and I do not like the fact he is in a way threatening if we go elsewhere he will charge us $7,000. Plus if he is the type of guy who hides things (as he claims) to get a client approved, I could see the same guy lying about the $7,000 charge as well so he could collect.
I'm an MLO in California and I would definitely back out! If he told you in writing that he purposely hid some of your information to get an approval, I would report him. You haven't signed the final docs, correct? If not, you sure as hell can back out without having to pay his brokerage $7k. What a load of bull, this MLO is a disgrace to the industry and should be reported. You might be responsible for fees such as credit report, appraisal etc. Honestly, you should tell him I am backing out and if you make any more threats to me I will report you to the commissioner. Actually, I would report him anyways because he needs to learn a lesson.

My guess is he got you a rate that had a lot of overage. This is most likely why he is able to keep extending the rate lock at no cost to you. Did he say he would cover all of your non-reoccuring closing costs? Sometimes it makes sense for borrowers to get a higher interest rate that will cover your closing costs if you plan on living there only a few years. However, if the loan goes sideways, they will use that money to pay for extensions instead. If the lender was at fault, sometimes they will extend the rate for free.

There used to be a lot of irresponsible MLOs that would lock rates with multiple lenders at once or lock rates before the borrower confirms he/she wants to go through with it. Lenders keep track of the pull through ratios and if the ratio gets too bad, they won't renew the contract with the mortgage brokerage.

I hope this helps! You should find out about your purchase contract to see if you'll lose your deposit if you don't close by a certain date.
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Old 05-05-2013, 07:38 PM
 
3 posts, read 39,797 times
Reputation: 12
Thanks for the help on this post.

BMW335xi, Who would I report him to? I am not sure what to do, we are supposed to close in less than 8 days.

The closing costs were included from our builder up to 6,500$.

As of now we live in base housing and we put notice with the base a few weeks back. We were supposed to move out by the 6th of May, but now they are letting us go until the 20th of May. I think my wife told me if we go further than that is a 100$ charge per day...

We are stuck, and I am not sure what to do. Should I call my agent? I am not sure if I am being paranoid or what... but I have a gut feeling all of them are supporting each other.
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Old 05-05-2013, 08:43 PM
 
Location: US
23,409 posts, read 22,927,573 times
Reputation: 18254
Quote:
Originally Posted by Wchutcheson View Post
Thanks for the help on this post.

BMW335xi, Who would I report him to? I am not sure what to do, we are supposed to close in less than 8 days.

The closing costs were included from our builder up to 6,500$.

As of now we live in base housing and we put notice with the base a few weeks back. We were supposed to move out by the 6th of May, but now they are letting us go until the 20th of May. I think my wife told me if we go further than that is a 100$ charge per day...

We are stuck, and I am not sure what to do. Should I call my agent? I am not sure if I am being paranoid or what... but I have a gut feeling all of them are supporting each other.
You're welcome!

Try this website, Consumer Access

This is a complicated situation and your time is limited, which makes it more difficult. Since you will be closing in 8 days and will be charged $100 per day afterwards, it might be better to see if you can just close in 8 days. If you had time, I would have encouraged you to sit down with a reputable MLO and go over the entire situation with them. It may be in your best interest to see if you can close in 8 days to avoid paying $100 per day and then six months later look into refinancing to a lower rate with no point no fee.
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