Refinancing

What is the name of your state? Texas Applied to refinance with our original mortgage company in mid-june via internet, approved for loan, locked rate at 5.25% for 30 years. Overnighted $325 check for appraisal on June 30, as per broker corporate could not cut check that quick. Title insurance was supposedly ordered on June 30. Drive by appraisal (exterior only) done on July 8. Week of July 13, contacted broker about closing/appraisal/title insurance, broker said all was ordered/in process. Week of July 18, contacted title company and was told that there was not an order placed. Immediately contacted broker and he replied that the people in our area did not get in a hurry for anything. July 21, contacted broker again (we knew that lock was close to expiring) and broker faxed copy of Good Faith Estimate and appraisal with both saying that our home value at $110,000. We immediately disagreed with appraisal and wanted 2nd appraisal at their cost. August 14th received 2nd GFE with home value at $120,000 with different amounts for closing, etc. August 20th, finally had 2nd appraisal (interior and exterior) done. Today...September 2nd...I contacted appraiser to see if they had sent final appraisal to lender/broker and they had e-mailed to broker on August 27th. Immediately called broker and was transferred to "Lisa" which had just received it on her desk and had not even had a chance to look at it but would get it to underwritting asap. I did managed to get the amount that our home did appraise for (without the pool)...$128,000....and requested a copy sent to us. Now with the 2nd GFE, the rate is at 5.875% with additional costs and previous amounts are different from the 1st GFE. My question is...can they do this to us after all of the run around and not returning our calls, etc. I had to go over the first broker to his branch manager and can't seem to get anywhere with him either (waiting for him to return call from this morning). We did everything in a timely matter and without any complications from our credit or otherwise and they have drug their feet causing us to lose our locked rate and we still have not closed on our loan coming up on 2 1/2 months later. PLEASE HELP!!!

I suspect we will see many of these threads over the next few months. Did the lender give you a commitment letter? If so, you need to read what it says regarding the rate lock and closing. Sorry I can't be much help other than that without seeing the commitment. Unfortunately, the commitment is most likely in the lenders favor.

Thanks for the reply Leashher...No there was not a commitment letter, but I don't recall getting commitments from previous closings for buying new homes or refinancing...don't want to start stressing out while digging through old paperwork...if you know what I mean. I never did get that call back from the branch manager yesterday anyway. Going to try and get him to meet us halfway at 5.50% and see what happens. If not, then we are going to wait this thing out all the way to closing and back out at/shortly before closing just to give them some of the grief back... hopefully. After all, it is not like we had to refinance, just wanted to take advantage of the lower rates (at that time...haha) like anyone else would do. I do wonder if it would be worth complaining to any/all that I can, just to stir the pot a little myself, as I did make that promise to do just that...oh well, let them sweat a little till I decide! The worst thing about this is that they are our original lender and now I will be irritated every month when making out that check to them! Hopefully...someday...rates will drop again and you can bet that we will be shopping for a new lender and will never do business with them again!

If you worked through a broker, it is most likely not the lenders fault. They were selling you money based on market rates they could lock in their funds at and very well may have been making a little more spread on the new loan. So they may have lost out as well. It sounds like the process between the broker and lender may have broke down somewhere. Good luck.

The broker works for the lender. We contacted our original mortgage company to refinance because rates had dropped. Our original mortgage rate is at 7.50% and we locked at 5.25% which would have been quite a bit more savings monthly. Hubby just called and asked had I ever heard from them...of course not...still money in their pocket either way!

[Souix]

Originally posted by RebeccaJ
The broker works for the lender. We contacted our original mortgage company to refinance because rates had dropped. Our original mortgage rate is at 7.50% and we locked at 5.25% which would have been quite a bit more savings monthly. Hubby just called and asked had I ever heard from them...of course not...still money in their pocket either way!

***Have you called other mortgage brokers to see what they can offer you? See if the other brokers will accept the appraisal that was just done on your home and then have it transferred to the other broker. Its sort of hard to do, but its your appraisal so be persistent. I know there is a place where you can file a complaint against a mortgage lender, but I do not have that info. Maybe someone else can provide it.***

Well...we did consider going elsewhere, but the whole purpose was to reduce the rate and now that is going back up...it is kinda senseless to continue (doubt the rates will be dropping any time soon) considering the 2 point rule for recouping the costs. I do believe that I can file a complaint with the BBB, in which they are a member of...ha! Thanks for the input...oh, by the way...still have not gotten that call back...was kinda hoping that I might get to direct some of this anger back at them sometime today...maybe not, but I am waiting...lol!

[Souix]

Originally posted by RebeccaJ
Well...we did consider going elsewhere, but the whole purpose was to reduce the rate and now that is going back up...it is kinda senseless to continue (doubt the rates will be dropping any time soon) considering the 2 point rule for recouping the costs. I do believe that I can file a complaint with the BBB, in which they are a member of...ha! Thanks for the input...oh, by the way...still have not gotten that call back...was kinda hoping that I might get to direct some of this anger back at them sometime today...maybe not, but I am waiting...lol!

***Have you looked into how much it would cost you to buy down the rate?***

Well, well, well...finally received that call back at 2:58 PM today. The first guy handling this, at that...wanted a current bank statement and only the last paycheck stub since he needed to get this closed and it had gone stale. Stale...is not the word I had in mind. Did not want to meet us halfway, so after a lengthy debate on his inefficiencies (hope I spelled that correctly) I let him know that we would not be closing at all. Then he had the nerve to tell me to discuss this with my hubby...haha...I let him know right quick that there was nothing to discuss that "I" had made the decision and so loved hearing the agitation in his voice...hahaha! Hope his b___hole grows together!!!!

[HomeGuru]

Wow, I guess he can be the butt end of the joke now.