Mortgage Broker Question

[Tayman]

Well once again I hit another stumbling block. My mortgage broker is trying to jack up my interest rate higher than what it should be.  My question is this:

I signed some type of agreement to pay the processing fee along with the appraisal etc.  I don't know if it was contingent on receiving a loan or not....I never received a copy of the signed document.  I have not obtained a loan through this man.  I want to know if I will still owe the processing fee and will I be able to get all of my documents back. My social security number and a lot more information is sitting in their files.  What do you suggest I do in this situation?

[Tayman]

Hmm, I guess since I haven't received a response on this issue this is something I shouldn't worry about?
I am just paranoid at this point since there has already been plenty of people out there trying to screw me over...

[tedjr]

Brokers are different as night and day as it comes to fees. What have you paid them ? What ever they have spent you probably can not get back. Have they done the credit report and most of the processing of the application?  Usually most will not spend the money untill necessary. Like the appraisal will not be ordered untill the last thing before funding. As I remember the law you can not get the folder back. You can have it transfered to another lender/broker and if it is not too old it could be usefull to a new loan officer. As far as interest rates, they float in the open market like the stock market. I do not know your particular circumstances but I have been quoted a rate and them it jumped because of a bad credit report or worse than expected and also we changed and went stated income and there are a number of reasons too that your rate may have changed. It is hard to change brokers mid stream but it may be worth it is you do not trust your guy now. I have only met one jerk in the mortgage business and he was a sweet talker. Talked me into even paying him to improve my credit report which he could not do. I hope you do not meet him.  Any way I hope you get some good out of all that mess above you there. Call or write if  can help some more

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[Matt_In_Texas]

[quote
author=Tayman link=; date=0]Well once again I hit another stumbling block. My mortgage broker is trying to jack up my interest rate higher than what it should be.  My question is this:

I signed some type of agreement to pay the processing fee along with the appraisal etc.  I don't know if it was contingent on receiving a loan or not....I never received a copy of the signed document.  I have not obtained a loan through this man.  I want to know if I will still owe the processing fee and will I be able to get all of my documents back. My social security number and a lot more information is sitting in their files.  What do you suggest I do in this situation?[/quote]

More than likely, the processing fee in non-refundable.   I can tell you for sure the appraisal fee in non-refundable, and if you do not use him for your loan, the appraisal is worthless.   (The appraisal has to be in the lenders name, and very few allow transfers).

He should give you back all the documents except the form you signed authorizing a review of your credit.  

It is very important to find a broker with experience and one you can trust, there are a lot of rookies out there since the refi boom.....

[Tayman]

well here is an update...

I am working with another mortgage broker, but once again he has made promises that he can't follow through with.  And now we are getting close to the closing date and I need to get the financing together.  

I am definetly getting frustrated at this point.  I have been going back and forth with the bank to try and settle things but there is always another roadblock in the way.  This is definetly a good learning experience, but I am just trying to figure out what I can do from this point.

It just seems like everyone that I deal with(when it comes to financing) is giving me the run around and trying to fill their pockets with my money.  :F

My closing date is set for December the first....what do you guys suggest I do to try and find financing?

I have been promised a 6% interest 100% financing fixed rate loan for 30 years (stated income) but I am being pushed toward a 7.75% 100% financing adjustable interest rate loan for 30 years.....

My fico score is in the 780's.... I figure I should be able to AT LEAST get a 6% interest 95% financing fixed rate loan for 30 years if not better...  
(This will be a homestead for a few years btw, but I am thinking ahead for REI)

[tedjr]

I know how you feel. It took me a year to get a loan to build my house. Changed mortgage brokers at least 4 times. Had good credit for twp years after BK. Should have worked at almost any loan company. Had to do stated income too because of self employment. One guy was a complete flake and crook. Said he could fix credit and get me great rate. Thank goodness appraiser was a friend, he kept updating and changing appraisal for different lenders at no cost. Looking back it was all worth it. We are now living in our dream home with over 4000 sq ft on 6 acres with $200,000 equity. The rate is a bit high for todays loan market at 9% but we really love all the custom wood work and wall paper and especially the wrap around Victorian style porch.
I guess just hang in there and you too will receive your reward. Matt in Texas sounds like an expert loan person, maybe he can help you do it. I hope so.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[JoanAlyce1]

With that credit score, 6% stated is possible.  However, there are a lot of variables in loans now days.  

For example, the higher interest rate adjustable loan may not have PMI insurance and may have lower closing costs, so it might be a better deal.  But your loan officer obviously isn't doing a good job of communicating.

If you do change lenders, you can legally transfer the file to expedite processing, but it would be like pulling teeth.

Best to get a contract extention and start over if you really feel uncomfortable.  Some appraisers will transfer the appraisal for a small fee.  That would help.

Best of Luck !