If we signed the paperwork for a 7.1% interest rate, had an appraisal and survey done, and the bank decides to
by Mortgage Rates on Thursday, November 4th, 2010 | 11 Comments
-
Mortgage Info
-
Updates
-
Useful Links
-
-
Tags
2010 About article Auctions bank banks best Business buyers change Credit Debt Equity Financial First fixed Foreclosure From good Government Help Home house Housing interest Loan Loans Market more Mortgage Mortgages Need News options qualify Rate Rates refi refinance Refinancing should this Time variable would-
Meta
oh my god!!!!!!!!!!!
thought the fine print on the agreement was
that you were locked in
that if interest went up your would not..
phone the bank?
trouble is all the rates went up..but yours should have been guaranteed
so you can’t switch to find a better rate..
not sure why that bank would do that..
you can also threaten to go public through an ad with the local newspaper……..
also since you will be needing a lawyer anyhow……
get one now…….and find out the closing costs, getting out of the deal for that reason, and a quote for a price to close and get the interest corrected..
i would try to correct the interest ..but a lawyer should be able to read and let you know..if it was guaranteed..
or you can get a “magnifying glass” yourself and read your letter/agreement you signed.
I always read my contract..
get a lawyer…especially if this is the home you love..
Legally if you did not sign anything that stated you would pay for the appraisal you probably do not have to pay for it. I have been stuck with a few in the past but it had nothing to so with my service people just changed their minds and did not buy at all. You may want to get a second opinion on your loan and program from someone else.
Typically, yes, but when you find your next mortgage lender, ask them to contact the other appraiser to have him transfer the appraisal to them and you can avoid paying for another appraisal. You will only we charged a “re-type” fee, which, in my state (Washington) is about $150.
No, your lender took the risk and paid for the appraisal and survey. The only way you would have to pay is if you signed something specifically stating you would pay for the appraisal regardless of if the loan closes or not. That’s terrible that they pulled that on you. Most times it’s even worse because the buyer actually pays for the appraisal and survey C.O.D. I would be more than happy to see if I can get your rate back to 7.1% or lower. You can email me at keithbailey@dovecapital.net if you have any real estate or real estate finance questions.
There are many factors that can lead to an increase in your interest rate (credit, debt ratio, amount of down payment, etc.). If you were happy with 7.1% you should have told the bank to lock the rate. If that didn’t happen I can tell you with certainty that the rates have risen dramatically over the last month. On May 1st the 30-yr fixed was at 5.875% for loans over $100K. Today that same loan is at 6.625%. Your rate of 7.1% tells me it is a sub-prime loan and perhaps your credit isn’t that great. If I am wrong and you have good credit, you were getting royally screwed by that bank – pardon the language.
Did you sign anything stating you would pay for the appraisal and survey? If not, then no because legally the bank ordered the two and they are responsible for them. If you are still buying the same home your new lender may be able to use the same survey and appraisal IF the first bank will release them. I say IF because they don’t have to. Good luck.
Professionally I hate to hear stories like this. It tells me there are still some moron loan officers out there who do not know what they are doing – and trust me – a loan officer NEEDS to know what he/she is doing because the home loan process is one of the most difficult to grasp for borrowers. So much involved.
u do have to pay for the survey and appraisal, which will be beneficial when u take ur loan to a new place u can submit their evaluation.
The bank should have given you a preapproval and a guaranteed rate that was locked before they did an appraisal on the house.
A bank did this to me twenty years ago and I raised hell with them. I canceled the loan and the purchase transaction.I almost lost my deposit which was $5,000.
I wrote to the local action line in the newspaper, I called radio talk shows and managed to get the name of the bank out over the airwaves on a few of them although most will not let you do that.
The bank got upset with all of the very public bad publicity that I was giving them. At first the threatened to sue me but when they discovered that I wanted them to sue me so that I could get even more newspapers and maybe even television interested they caved in and wrote me a check to reimburse me for the money that I spent on the appraisal.
Incidentally, that bank is no longer in business. I wonder why.
This is what you will need to do to them to get reimbursed.
I hope that you will do it. I see so much bait and switch advertising going on when it comes to loans that it is absolutely ridiculous.
They do not tell you the real rate that they are going to give you until the end of the escrow period when you are ready to sign off on the loan. That is what they are counting on. Most people just cave in.
I think that when they do this to us we need to refuse to sign off and then we need to sue them for damages.
On a purchase you can lose your deposit. We need to sue the lenders that do this to make them reimbuse us the thousands of dollars in deposits that we can lose if we refuse to go through with a purchase because the give us a ridiculous jacked up rate at close of escrow.
If more people would stand up to these crooks, this bait and switch nonsense would stop or the lenders would go out of business.
It is time that we put some dishonest lenders out of business.
.
If you didn’t sign the loan there is NO need for a lawyer. You may have to pay for both of those- usually both the seller and the borrower have to do these.Your legal thing probably will be with the seller. But even here, you should be okay. You have to qualify and you have to agree to the terms for there to be a binding contract.
Did you sign anything that has bound you to the deal? If so then you do need a lawyer.
Banks are tricky that way. That is why you should NOT shop interest rate and payment; you should think how long will you be in debt and how much am I going to pay back. Then base your choice to go with one bank over another.
depending on whether or not it was wrapped in closing cost or you paid out of pocket at the door…….it really all depends……if you need any help please feel free to call me……i have 20 + years mortgage experience……….631-673-6100 ext 3506
Joe giunta
A simple phone call to the lender will clear up any questions and confusions….