Loan/Closing questions

[Panakk]

I closed on my home yesterday, but i must say it was hell.

About 4 months ago, i went shopping for loans, and i got CapFed to agree on a 7 year ARM at 4.625%. This is if i pay a commitment deposit, not a rate lock fee but a deposit that i get back.

Off course i got First National Bank to pricematch it. Well, i guess we had verbally agreed to it, exchanged emails about it but a month ago, i got a good faith estimate and i signed it without realising it showed the commit deposit as a rate lock fee.

When my loan officer told me the amount i had to bring to closing, i threw a fit. Long story short, I ended up getting a 5 Year ARM at 5.25 %. THis sucks compared to what i was promised.

Since i have already closed on my loan, is there anything i can do about this? I don't have a written prove that this was promised.

 

[dirtboy]

If you don't have a contract, then you don't have anything.

 

[paulney]

How's your contract worded? Can you pay off this one without prepayment penalties?
If so - wait 2 months and start refinancing process. Sucks, but in 2 months you won't lose that much money. Chalk it up to experience.

 

[Panakk]

Originally posted by: paulney
How's your contract worded? Can you pay off this one without prepayment penalties?
If so - wait 2 months and start refinancing process. Sucks, but in 2 months you won't lose that much money. Chalk it up to experience.

What do you mean? The rates are going up though. And no there isn't any prepayment penalties?

 

[Panakk]

?

 

[GtPrOjEcTX]

Originally posted by: Panakk
?

refinance in 2 months was the gist of his post.

 

[waggy]

yeah refinance and read your contract fully. But i guess you learned that now eh?

 

[Vic]

What do you want to do, sue? :roll:

The Good Faith Estimate was just that, an estimate. If you didn't like what you received at closing, you should not have signed the documents. This is why I tell people that it is more important to work with a lender that they can trust than to simply shop for the lowest estimate.

 

[lancestorm]

Refinancing is a simple solution for you guys to say, but often that is very expensive!!!

 

[Scarpozzi]

Originally posted by: lancestorm
Refinancing is a simple solution for you guys to say, but often that is very expensive!!!

Yeah....because you get stuck with the processing costs of another loan.

 

[Modeps]

Need advice from legal experts

then why are you here and not talking to... oh, I dunno... a lawyer?

 

[BD231]

Never *EVER* trust a good faith. Loan companies spit those out with every submission they get and more often than not they have no bearing on your final product choice.

You should have waited it out, the market is over a point and a half better in just the past 2 days

 

[Vic]

I would not do a refinance for him, as it would not make sense. The reality is that he got a competitive deal, and can't get a better one right now even though rates have dropped better than a quarter point in the last week or so. The issue is that rates were much lower 4 months ago when he was shopping with CapFed than when he finally locked with 1st National.
He shopped too long and missed the boat. I see this all the time, usually from prospects who are arrogant and think they know more than I do, and who are fixated on the the lowest rate and not the best deal (the 2 are not always the same).
Congratulations on your new home though. You do realize that interest rates are still near historic lows and that you got a great deal right?

BTW, I guarantee that you do have all this in writing (provide the bank was in compliance). By Federal law, 1st National was required to inform you in writing of your lock status at all times while your loan was in process. You should have a minimum of 2 rate lock disclosures that should have come to you in the mail. The first one will be from about the time you applied, and I bet it says that you were "floating", i.e. not locked. Then you should have another from the time that you actually did lock. Dates, loan terms, and definitions should be all included.

 

[Panakk]

Originally posted by: Vic
I would not do a refinance for him, as it would not make sense. The reality is that he got a competitive deal, and can't get a better one right now even though rates have dropped better than a quarter point in the last week or so. The issue is that rates were much lower 4 months ago when he was shopping with CapFed than when he finally locked with 1st National.
He shopped too long and missed the boat. I see this all the time, usually from prospects who are arrogant and think they know more than I do, and who are fixated on the the lowest rate and not the best deal (the 2 are not always the same).
Congratulations on your new home though. You do realize that interest rates are still near historic lows and that you got a great deal right?

BTW, I guarantee that you do have all this in writing (provide the bank was in compliance). By Federal law, 1st National was required to inform you in writing of your lock status at all times while your loan was in process. You should have a minimum of 2 rate lock disclosures that should have come to you in the mail. The first one will be from about the time you applied, and I bet it says that you were "floating", i.e. not locked. Then you should have another from the time that you actually did lock. Dates, loan terms, and definitions should be all included.

I did not receive any rate lock disclosures at all. I do have something with my pre-approvaly document but i can't get a hold of my stupid realtor cause she's holding it right now. Yes rates are at historic lows but i'm afraid that since i have only a 5 year ARM, i might be there for 7 years then buy a new house.