The closing documents were wrong: Interest rate was .75 higher, the loan amount was 5% lower, the funds were not there, and the fees were higher than the original docs they sent me.
I refused to sign them and walked out the door. My mortgage broker is trying to get everything straight and still get this closed, but I don’t care right now. I am sick of lenders pulling this junk. Interest rate adjustments have happened to me before.
Does anyone know if it is legal for lenders to change things just before closing without notifying you? If not, what, if anything, can you do about it besides not sign?
I believe fees have to be within 10% of what you signed on the good faith estimate. As far as the rate…maybe your broker was not intelligent enough to lock the rate when you initially signed and it moved…or he decided to be a jerk and grab some money out the back on your rate too! You should research your broker beofre you use him/her so next time this does not happen. You do not have to take the loan. Even if you signed at close, you would have a 3 day rescinding period to withdraw if it is a refi. Good luck!
Does anyone know if it is legal for lenders to change things just before closing without notifying you? If not, what, if anything, can you do about it besides not sign?
I would back up this broker, but, he/she knows prior to closing what the parameters are. Maybe He/she just thought that you wouldn’t catch it? Do Not Sign until you are comfortable with the parameters! YOU are the customer!
Today must be unethical broker/lender day. I have posted on three different posts that were discussing this BS! :ibs:
Sorry…do not know that there is a price. I want to get through the pearly gates quickly. My hell will be their need to process me (like a mortgage loan) just to get in!
I know I will have the underwriter from He## :evil:
My luck is horrible so I would rather play straight up!
Last year I went to the closing on a rental SFH we were buying. The total closing costs were $8000 more than I was told they would be and $4000 more than I had. We didn’t sign that day we worked with the mortgage broker and the title company to adjust the closing costs. My mortgage broker waived all of his fees that I would normally pay. We got the actual insurance costs and other amounts that were being collected adjusted closer to reality and we signed two days later once we got the numbers down to the original costs I was expecting.
Don’t give up on a deal because of the closing cost issue before you try to work it out. There are several fees that can be adjusted. It is normal practice for the title company to inflate the amounts for taxes, insurance, etc. to ensure that there is more than enough money to pay fees. I usually get a check a few months after closing for the difference between what they collect and what is actually used. Most of the time the check is between 1k and 2k, on the above adjusted closing I received a check for a little over $200.
There are preditory lending laws in place. Please don’t give into these guys that change things before closing. A lot of them just bank on you not having the guts to walk away. Even if you did leave they think that you are tied to them until it is fixed. And as Mark said…you are the customer and you don’t have to sign anything that is not exactly how it was disclosed.
Be careful on Investment property. There is not a three day right of recission period if it is not your primary residence. What you sign at closing funds that day and your payoff to the old mortgage company is sent right away.
