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I did my mortgage app over the phone and just received the papers to sign. I have 2 problems.
1) GFE lists way more fees than discussed:
I specifically asked about fees involved. Before I applied I asked the lender to list fees in writing. After I got it I called him to discuss. I asked about specific fees I thought would be there but weren't (processing, credit report, rate lock.) He told me point blank that the fees on the list were the only ones to expect. (I also have that in writing.) That they didn't "charge a bunch of fees."
2) Higher % rate than discussed:
Wednesday I was quoted a rate, confirmed it on the website. I applied Thursday. I did not lock in the rate (we're in a short sale.) Friday, when I got the papers, the website rates were current and still at Wed's % . Why on Earth would the rate on the papers be nearly a full % point higher?
I can't think of any legit reason why there would be such a discrepancy between our discussions/emails and the legally binding documents he sent me to sign. This guy seems like a dishonest jerk. I'd rather just eat the $300 app fee and find an honest lender.
My question: Should I bother to ask why the papers are wrong and give him a chance to fix it or just find another lender?
If it were me, I would definitely tell him you're beside yourself that he used the bait & switch on you, after all the communications you've kept up with him on. Tell him he wasted your time and money, and unless he has a good explanation, or changes things, you're gone, as is anything positive you might have passed on about him and that business. But I'm no expert and this is just an opinion. I'm interested in hearing what the pro's have to say about it...
Is it possible that what you sort of had initially was a verbal prequalification of sorts, and what you then received was a pre-approval (the GFE)? Did they see anything on your credit report that differed from what had been discussed, and gave them pause and cause to increase your rate? Something to remember, that GFE is an ESTIMATE also! You might still end up with things being higher than that at closing!
No, my husband and I have excellent credit, both in the low 800s. I'm going to talk to my lawyer in the morning to see about getting my app fee back. Not that I'm banking on it.
No, my husband and I have excellent credit, both in the low 800s. I'm going to talk to my lawyer in the morning to see about getting my app fee back. Not that I'm banking on it.
it's just so annoying.
I completely agree, but from my own experience what is on the GFE papers doesnt necesarily have to be true - in terms of rate / orig fee -= I had 6% beginning of Feb but took a whole month to settle on a home and back n forth.. Finally today my LO states I can lock in TODAYS rate if I am ready at 4.875 which I did, and todays deal was 0 orig fee! So I jumped..
You have a right to be angry, but I would talk to him in a frustrated angry tone and see if he tells you that was just the rate when he drafted the GFE and todays may change...etc
Or, at first, you could try a different approach of confusion and tell him about the deals all of your "friends" have been getting and ask whats up with your lesser deal?
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