Feel like we in the Twilight Zone

[gofish]

What is the name of your state? NJ
We applied for a refi of current mortgage with one of the internet providers who show lenders competing for our business. All the reading I've done said this was most feasible. We spoke with a mortgage co. who offered not the best rate but claimed they were more of a mortgage bank with no incentive for bait and switch tatics - like so many of the "other" lenders out there, the rate and time frame was favorable with us.

The gentleman gave all the info over the phone rate, APR told us appraisal fee to be paid by us. The only doc he sent us thus far was a borrower's cert. and auth. which we signed 7-13-06. We did not fill out a loan application or sign one. Appraisal was done on 7-10-06. The appraisal co. began calling us for payment right away. Now keep in mind we had yet to receive any other doc. I informed them that I had not heard form mortgage co regarding status of anything, and that I wouldn't give them my credit card info over the phone without a bill or some sort of notifcation regarding loan from the mortgage co. The girl seemed to be angered by that - 10 min's later loan office calls surprise surprise - wants us to sign and redate new certification and fax it to him ASAP as we were supposed to get documents 3 days after we signed first paper(7-13-06) and sure we should pay with CCard for appraisal Long story short I had a bad feeling and we did not sign new cert, however, he did finally email the GFestimate and loan information - - bet you guessed it**************... none of the written information matched what we were given on the phone. The loan amount increased much, as did the rate APR and closing fees In addition there were points added which he never disclosed THREE to be exact, and outrageous courrier fees, etc. In addition they were 100% likely to sell loan terms may differ early prepayment penalties etc. Our credit rating is "good" by credit standards no black marks in our files, etc. This seemed surreal that the rates and all the conditions were so drastically changed.

I don't want this loan nor would I ever recoup the cost of this refi for too many years to come - Would you say that we...
-As we signed no paperwork are we liable to continue with this mess?
-Are we responsible to pay for the the appraisal fee?
-Also there was an application fee of 990.00 listed on GFest. which I was told there was no application fee do we need to pay that?
-As we signed only that one document are we legally bound to proceed and/or do we need to rescind.

Thanks for reading such a long post and your replies would be much appreciated.

GoFish

[pojo2]

If your credit is so good why on earth did you even bother with a company on line that is merely a middle man? Why not go to local concerns where you can find the same rates etc.?

Loans are sold all the time that is no biggy.

Others will know better than I but you might need to go ahead with the loan, this is a refi right, and then use the 3 day time period to recind the contract immediately in order to walk away without cost.

However if you have signed no contracts there is nothing to recind????

[gofish]

Yes this is a refi. And yes I reviewed our credit scores/report again all good.

Also this loan officer indicated that they were a mortgage bank, and while his % was slightly elevated compared to those online, he said the others were all bait and switch, and that due to their banking status there were no middlemen involved - thus the rates he quoted me were true -----No bait and switch here he said.

I've read on several sites that the internet shopping was recommended as you could compare several lenders at a time vs applying to multiple local banks on foot, espically they claimed because this could take several days to get response and rates could not be properly reviewed with the fast change in market.

Also I typed this last eve in a sleepy stupor - the borrowers auth/cert was signed and dated 7/6/06 and we were supposed to receive paperwork three days after -

however,

the paperwork came on 7/14/06 and we never resent the newly signed borrowers auth/cert with new date of 7/14/06

Would we still be liable for this loan??