Posted on: 17th Jun, 2009 07:24 pm
my girlfriend and i were trying to refinace the house she owned the last 5 years into both our name. she had some credit issues in the past and had a credit score in the mid 600s, my credit is in the mid 700s. we applied for a mortgage on 3/30/09 and the broker told us it should be no problem. 2 weeks after he called and said he could not get the loan past with her on the mortgage so we would need to re apply with just my name on the mortgage. we also asked for our own appraiser(prior to may 1st law) we were seeking to just refinance our house that apprased at $215,000.00 and we owed $141,000.00. we were not pulling ant money out.
we had based on the appraisal $74,000.00 equity in the home, i make 48,000.00 per year, have only $500 to $600 of bills per month about totaling $15,000.00 total dept to my name and a cash reserve savings account with over $17,000.00. i could pay everything off anytime i wanted to. i always pay bills on time and more than the minimum on credit cards.
i have been told this is a "slam dunk case" with our equity in the house, my mid 700s credit and my income to dept ratio.
upon resigning the papers with just me on the application we were told verbal that we were locked in at 4.50%. about a week later my broker called and said rates went up and i wasnt locked in and the 4.50% rate was a verble he had from a clerk or someone from the lender, he said a sale agreement between my girlfriend and i had to be signed to be locked in. i went off on him but had to accept that somebody made a mistake and the best he could do was a 4.875% so i signed a sale agreement to lock the rate in.
about 2 weeks go by and my broker calls again 2 days before he said we would settle and said that may 1st the law changed on apraisals and the apraisal we obtained on 4/3/09 is no good. he said he thought the lender would grandfather in our apraisal but they have rejected it. i signed the loan in just my name on 5/19/09 and had to sign the sale agreement about a week or so later and we were told the rate would be expired before the lenders apraisal could be completed so i was turned down for the mortgage and would need to re apply at todays rate. we were given a statement of denial but its from the broker. question??? are we entitled to a list of everyone and the dates our credit applications were submitted to by the broker?
are we entitled to a letter of denial from the lender as well as the broker? i feel the broker denied the loan to hide gross mistakes or un ethical activity on there part.
how long is a rate lock in good for? as long as the rate has not expired can a new appraisal be orderd to satisfy the new law?
if a brokers action costs you money in waisted apprasials and lost low rates is there any legal action i can take against them.
this "slam dunk" case started on 3/30/09 and here on 6/12/09 i was with excellent credit, good income large cash reserve and a very high equity ratio denied the loan because of the apprasal that was within the law at the time. someone please help with some answers
we had based on the appraisal $74,000.00 equity in the home, i make 48,000.00 per year, have only $500 to $600 of bills per month about totaling $15,000.00 total dept to my name and a cash reserve savings account with over $17,000.00. i could pay everything off anytime i wanted to. i always pay bills on time and more than the minimum on credit cards.
i have been told this is a "slam dunk case" with our equity in the house, my mid 700s credit and my income to dept ratio.
upon resigning the papers with just me on the application we were told verbal that we were locked in at 4.50%. about a week later my broker called and said rates went up and i wasnt locked in and the 4.50% rate was a verble he had from a clerk or someone from the lender, he said a sale agreement between my girlfriend and i had to be signed to be locked in. i went off on him but had to accept that somebody made a mistake and the best he could do was a 4.875% so i signed a sale agreement to lock the rate in.
about 2 weeks go by and my broker calls again 2 days before he said we would settle and said that may 1st the law changed on apraisals and the apraisal we obtained on 4/3/09 is no good. he said he thought the lender would grandfather in our apraisal but they have rejected it. i signed the loan in just my name on 5/19/09 and had to sign the sale agreement about a week or so later and we were told the rate would be expired before the lenders apraisal could be completed so i was turned down for the mortgage and would need to re apply at todays rate. we were given a statement of denial but its from the broker. question??? are we entitled to a list of everyone and the dates our credit applications were submitted to by the broker?
are we entitled to a letter of denial from the lender as well as the broker? i feel the broker denied the loan to hide gross mistakes or un ethical activity on there part.
how long is a rate lock in good for? as long as the rate has not expired can a new appraisal be orderd to satisfy the new law?
if a brokers action costs you money in waisted apprasials and lost low rates is there any legal action i can take against them.
this "slam dunk" case started on 3/30/09 and here on 6/12/09 i was with excellent credit, good income large cash reserve and a very high equity ratio denied the loan because of the apprasal that was within the law at the time. someone please help with some answers
Without seeing your loan its hard to determine who is at fault. If you were told the loan was locked you should have received and signed a lock in agreement. For now I would recommend going to another mortgage consultant and seeing what they can do. The next one you go to should be able to provide a mortgage approval before you spend a dime on anything....at least thats how I work if a loan is risky. good luck
That is an unfortunate experience and I do hate to hear those stories. Brian always has good comments and advice.
Hi billyahag,
Your credit score of 700 is quite good. With an yearly income of $48k and a cash reserve savings account worth over $17k, you seem to be in a good position to qualify for a loan. From what you have mentioned it seems that the broker was actually trying to do some kind of a fraud with you, but backed out of it at the last moment due to some unknown reason.
As far as the lock-in rate is concerned, I feel it was a little mistake on your part to have not signed any lock-in agreement with the lender. The verbal agreement is of no importance here. Your rates are not locked-in unless you sign a written agreement with the lender. Did you sign any documents or agreement with the lender at any point in time?
It also sounds fishy to me that the denial came from the broker and not from the lender. After all, it is the lender who approves and offers you the loan. Did you ever try to get in touch with the lender and have a direct talk with them?
I don't think you, as a borrower, are entitled to a list of all to whom the broker submitted your application to. As for the letter of denial, yes, you should have got that from the lender, and not just from the broker. As far as the appraisal is concerned, if some sort of an agreement has been signed by the borrower and the lender, there is no need for a new appraisal to conform to the new appraisal act. In situations like this the old appraisal will be deemed valid. But if everything is verbal and there is no written commitment on the part of either the borrower or the lender, a new appraisal can be ordered. Suing the broker at this point may not be effective as you do not have any strong evidence in support of your claim that what the broker tried to do was unethical.
I think you should start things afresh. Your credit score, income look good enough to get you a loan. As Brian has said, there are quite a lot of mortgage professionals who can help you with a mortgage, without you having to spend too much of money on anything. Your girlfriend can also be on the loan with you, provided she can solve her credit issues, like if she has any collections against her and she takes initiative to pay them off, she can be co-borrower with you. There are many a lenders in our community as well, with whom you can go for a no-obligation free mortgage consultation. They will assess your financial situation, check your credit score etc and will offer you free suggestions on whether you or your girlfriend or both of you can qualify for a loan. They would also be able to advice you on what type of mortgage will be best suited for you.
Your credit score of 700 is quite good. With an yearly income of $48k and a cash reserve savings account worth over $17k, you seem to be in a good position to qualify for a loan. From what you have mentioned it seems that the broker was actually trying to do some kind of a fraud with you, but backed out of it at the last moment due to some unknown reason.
As far as the lock-in rate is concerned, I feel it was a little mistake on your part to have not signed any lock-in agreement with the lender. The verbal agreement is of no importance here. Your rates are not locked-in unless you sign a written agreement with the lender. Did you sign any documents or agreement with the lender at any point in time?
It also sounds fishy to me that the denial came from the broker and not from the lender. After all, it is the lender who approves and offers you the loan. Did you ever try to get in touch with the lender and have a direct talk with them?
I don't think you, as a borrower, are entitled to a list of all to whom the broker submitted your application to. As for the letter of denial, yes, you should have got that from the lender, and not just from the broker. As far as the appraisal is concerned, if some sort of an agreement has been signed by the borrower and the lender, there is no need for a new appraisal to conform to the new appraisal act. In situations like this the old appraisal will be deemed valid. But if everything is verbal and there is no written commitment on the part of either the borrower or the lender, a new appraisal can be ordered. Suing the broker at this point may not be effective as you do not have any strong evidence in support of your claim that what the broker tried to do was unethical.
I think you should start things afresh. Your credit score, income look good enough to get you a loan. As Brian has said, there are quite a lot of mortgage professionals who can help you with a mortgage, without you having to spend too much of money on anything. Your girlfriend can also be on the loan with you, provided she can solve her credit issues, like if she has any collections against her and she takes initiative to pay them off, she can be co-borrower with you. There are many a lenders in our community as well, with whom you can go for a no-obligation free mortgage consultation. They will assess your financial situation, check your credit score etc and will offer you free suggestions on whether you or your girlfriend or both of you can qualify for a loan. They would also be able to advice you on what type of mortgage will be best suited for you.
I feel like there was somthing fishy going on. this should have not been a problem. I intend to file a complaint, Im only out $400 + the low rates I have now missed. I would not want to see this happen to someone else.