Lender delays which will cost me $$$

[gummadi_b]

What is the name of your state?What is the name of your state?What is the name of your state? Virginia

PLEASE PLEASE READ...

I purchased a brand new house. Shopped around for loans and finally found one lender who promised a good rate and reasonable fees. I also informed the lender about the closing date(October 25th).

September 26th.
We both had signed and dated an AGREEMENT FOR FINANCIAL SERVICES - VIRGINIA which includes the rates that were locked and also includes the fine that I am obligated to pay if I choose a different lender.

October 10th.
Lender confirmed in a email that she recieved all the requested documents from me.

October 18th.
Underwriter returned papers and requested couple of documents. Since then, because the closing is with in a week, I started calling/emailing them for any further documentation that I need to provide. Made lender aware that builder will charge $2500 per day(per diem) for my delay to settlement.

October 24rd (a day before settlement date)
After exchanging tons of emails/phone calls, finally at 1:00PM I was asked to bring 5% more to the table. With lot of effort and with lot of tention could manage to get the additional funds to avoid the builder fines and to close on time. At 2:30PM lender confirmed that he cannot close it on time.

Also they made me pay $450 for their appriaser. I have proof in my emails for every single statement that I quoted here. He is still unable to explain what the delay is in processing the loan. What can I do about it? Please advice.

Thought purchasing a house is fun but having sleepless nights...
ViV(Victim in Virginia)

[Samm1970]

Not sure if you have a legal remedy. Another member of the site can answer that for you.

There is one way to get the lender to step up to the plate if you were referred to him/her by your real estate agent or another professional. If someone referred you to him/her, it's likely the mortgage broker has received other referrals in the past and is counting on more referrals in the future. Express your displeasure to the referring party as you have here. If the mortgage broker feels this will jeapardize future referral business he/she is likely to step up to the plate.

If you did not begin working with this person because of a referral, it's a good lesson to learn. Referrals are the best way to ensure these types of things don't happen or if they do, the beneficiary of the referral is ususally more willing to step up to the plate for fear of losing future business.

[gummadi_b]

I totally understand and I agree with you that I should have used some referrals. Lender did a mistake and I learned lesson. How can we make him learn a lesson so that the future buyers will not get into a trap?

[rakelusa]

I admire you for attempting to obtain a loan with a lender directly (or at least it sounds like you were working directly with the lender) I have conection with lender and it still takes me a lot of e-mails and phone calls. I would suggest maybe next time use a broker. They would handle the paperwork for you, to ensure that the loan closes in timely manner.

[pojo2]

Originally Posted by rakelusa

I admire you for attempting to obtain a loan with a lender directly (or at least it sounds like you were working directly with the lender)

Huh????????

[Samm1970]

I admire you for attempting to obtain a loan with a lender directly (or at least it sounds like you were working directly with the lender) I have conection with lender and it still takes me a lot of e-mails and phone calls. I would suggest maybe next time use a broker. They would handle the paperwork for you, to ensure that the loan closes in timely manner.

Just any old broker? There are a higher percentage of bad eggs in the broker world then in the retail banking world, trust me. The key is getting a referral from a trusted advisor.

[gummadi_b]

I am not brave but I am new because this is my first house. And no when I said lender I mean broker(sorry for confusion, I should have been more clear on that). Is there atleast one way that I can get my appraisal fee back. Atleast the appraisal fee back? Thanks for all your replies.

[pojo2]

Originally Posted by gummadi_b

(sorry for confusion, I should have been more clear on that

Your statements were not the confusion but one of the other posters.

Do you have a financing contingency in your Contract that you signed?

It is not uncommon, unfortunately, that loans do not close on time through no fault of yours or your Brokers. You need to find out why and then proceed from there.