Rate Lock? (loan officer, interest rate, credit card, fees)

[orangenj]

I have a question for the experienced mortgage people out there. I'm working with two different lenders to compare GFEs to see which would give me the better deal. Well, one of them locked me into an interest rate and put a preliminary charge on my credit card for the appraisal already. My husband and I have not yet signed and returned the loan application, since we just got it yesterday and I want to read everything before signing and sending it back.

My question is, are we bound to use this bank because we "locked" with them?

Thanks!

P.S. Please don't remind me how stupid I was to give this woman my credit card information in the first place.

[schoolofhardknocks]

No, you are not bound to use the bank because your rate is locked. However, the time is ticking with this lender because your rate is locked for a certain period of days.

The appraisal can't be charged for until the appraiser comes out to inspect your property. Technically, they can't charge any fees until you sign the disclosures.

[SmartMoney]

A lender may not charge your credit card until 1). you have received and signed your Good Faith Estimate, or 2). 3 days have passed since you received your Good Faith Estimate.

If the charge occurred on your card without you receiving your GFE, you may tell the loan officer to process your refund immediately, as she was in violation of RESPA. Send in your letter withdrawing your loan application immediately. You can demand a refund, they cannot charge you for a service not performed.

[orangenj]

Thanks, SmartMoney. We're going to be going with a different bank. Too many things about dealing with this woman pissed me off. The biggest thing that offended me was that we received the loan application in the mail with our demographic information already populated. I spoke with her over the phone and she never asked me our race. She made an assumption based on our names and just speaking with me, which is totally not okay. I think she also thinks I'm dumb because I sound young on the phone (I'm 26, hubby is 27) and we're first-time buyers.

[schoolofhardknocks]

Originally Posted by SmartMoney

A lender may not charge your credit card until 1). you have received and signed your Good Faith Estimate, or 2). 3 days have passed since you received your Good Faith Estimate.

If the charge occurred on your card without you receiving your GFE, you may tell the loan officer to process your refund immediately, as she was in violation of RESPA. Send in your letter withdrawing your loan application immediately. You can demand a refund, they cannot charge you for a service not performed.

There's no place on the GFE for borrowers to sign I think you mean until the borrower receives the TIL.