Posted on 08/20/2013 6:34:22 AM PDT by w4women
Thank you so much in advance for any guidance/recommendations you may have. My daughter bought a house in Denver and is looking for loan - will put 20% down and finance $390k. Recently had a "bait and switch" on locked in rates. Anyone have recent positive experience?
I do this for a living.
What happened? Did they not get her rate locked in and then rates went up?
Look into joining a credit union and work with them
Can even join Pentagon Federal Credit Union by joining an affiliated member group like the Red Cross
Do it quickly. Rates are going up.
Went to the largest credit union in the area and got 3.75% with minimum expenses and closed within a month with no hassles.
I believe they are a local Colorado credit union. She'd have to contact them to determine membership requirements.
Even a verbal promise is a legal contract....
.... or a fraudulent inducement of lending terms.
Perhaps ask your lawyer to write "the letter" explaining their options...
..... permit the lenders to decide which pathway to walk.
"Bait & switch" is pretty commonplace--
Holding them to original promise of terms--is the solution.
JMO...
Lender said fee was too high so h locked in a week later?
I went through a local broker, personal family friend, who charged me around $600 to find a reputable lender. He didn't collect a penny until the closing was done. I got a 2.75% APR on a 15 year refi. The lender was Flagstar Bank, based in Troy, Michigan. Our Pittsburgh market is apparently very attractive to a lot of out-of-state lenders. Don't know if they do anything about Denver, but compared to Detroit, it should be attractive as well. It may be worth a phone call.
What genuinely surprised me about my experience was the sheer number of strong and very strong banks in our area (PNC, Fifth Third, Citizen's, Dollar, First National of Hermitage) who either turned up their nose at my business outright or made very uncompetitive offers.
And the only two to make competitive offers (Flagstar and Quicken) were both based near Detroit.
You may possibly have a similar thing in your market. Denver may not be all that attractive nationally. But compared to, say, Phoenix, it may be very attractive. I'd maybe start with lenders in the Arizona market looking to diversify their loan portfolio.
My guess is the loan officer screwed up and didn’t get her rate locked in.
I have been extremely careful as rates shot up not to do the same thing myself.
Ask if if she received initial disclosures such as a Truth in Lending (TIL) document (1 or 2 pages). The TIL lists the actual interest rate and the APR.
Also see if she received a Good Faith Estimate.
If those documents went out to her; she could force the issue and get her rate.
That’s assuming however my guess on getting the rate locked was the issue; and not some other issue was involved.
I have had two mortgages and one fixed rate home equity loan with DCU(Digital Credit Union)out of Mass. They were the credit union for the former Digital Equipment Corporation. They are very aggressive on rates and tend to keep most of the servicing in house.
If they do not write loans in your area, I would go with a local credit union. I would NOT go with a large nationwide bank.
Advice? Rent. Take the downpayment and put it in a REIT fund if you want to bet on the housing market. Right now the game is rigged and you’re not pulling the strings.
What is an REIT fund? Just wondering. Sorry, not real saavy. Rents in NJ are very high....just a one bedroom is over $1,000 and a studio is almost that much. It’s awful out there. I’ve been looking myself.
What is an REIT fund? Just wondering. Sorry, not real saavy. Rents in NJ are very high....just a one bedroom is over $1,000 and a studio is almost that much. It’s awful out there. I’ve been looking myself.
oh, thanks.
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