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I am working on a refi of an investment property, and submitted an application to the broker that quoted me the best terms in an Itemized Fee Worksheet (IFW). I haven't locked yet, as I feel rates are going to drop a bit this week due to the Yellen Fed confirmation, but I want to start moving the process forward. So I have asked them to give me a GFE and Truth in Lending statement. However they are saying they won't do this until I lock, as they do not offer float-down locks. It has been over 3 days since I submitted the application...is this legal for them to refuse to give me a GFE at this point?
I understand they don't want to waste their time, but I also want to make sure their IFW quote was realistic before I lock. I showed the IFW to the broker that did my last refi (on another property) and his rate is 3/8 higher so he is saying they probably are quoting me an owner-occupied rate. He could just be sour grapes that his rate is not as competitive, but I need the GFE to prove that. Thoughts?
When Lenders disclose terms and include a full 2010 GFE, and the rate is not locked, the initial disclosures would include a "not locked/float" disclosure. Then, when you lock, they send a new GFE/TiL/Lock Confirmation, which you sign.
If the rate is different from the initial disclosure, it is reflected on these forms with a "Change of Circumstance" box checked.
The thing is, if you don't lock, and rates go up, they are not bound to hold to the non-locked initial disclosures.
I have been through 3 national lenders, 1 local lender, 3 builders lenders and got GFE from each one without a credit pull or firm agreement to do any business with them. No one has told me no when I asked for it and it was supplied fairly quickly, day or two.
In my very limited experience I would say any lender who doesn't want to give you a GFE from the start I would not continue with.
That wouldn't be legal for a personal mortgage (non-investment) - they have to provide a GFE within 3 business days. I don't know about investment mortgages though...
I'd go to another broker anyway. I've sent out a zillion GFEs without locked rates, and it's no big deal.
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