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Wednesday, November 6, 2013

NEVER TRUST A BANKER COMPLETELY

               

Getting a mortgage sounds easy enough and surely banks would not do you wrong, but trust me, don't trust them. Many times you are told one thing and when it comes time to sign those papers they say something completely different. So it is important that you stay on your toes and read everything that is given to you. I will give you examples of some of the problems I have been through just recently in refinancing.

Right now is a good time to buy a home or refinance, for some reason banks are trying very hard to get you to come to them. I am not sure why, possibly because interest is going to go up and so is the cost of living. We are looking at a recession or depression in the near future. Myself I decided to refinance to pay off my car I recently purchased that way I owned it and went from a 20 year to a 30 year dropping my house payment down. I am hoping I can sell my house within the next year or so, but if I can't and things get bad I can always move in with my mother, rent my house and not worry about losing my car.

As you can see there can be strange reasoning for refinancing. Maybe you need to pay off some bills or your cars, to have some extra money to put in savings, I know many of you don't save, and that is sad, because when it comes to retirement and there isn't any social security, you are going to wish you had.

Anyway, my first bank I went to was Bank of America because that is where my loan is. At first, I wasn't going to get the loan because the interest rate was still too high to what I was already paying but I let the banker talk me into it saying, how great it would be to pay off my car. The more I thought about it the more I decided it would be nice to be able to save some extra money for my IRA.

I filled out my application and told him that the closings cost could not exceed $4000 or I absolutely would not do it and that had to include escrow. He assured it. He also told me he was not going to charge my credit card the appraisal or credit report fee until after I received the application, signed and returned it. Guess what, he lied, the next day I saw the fee pending on my credit card. I called him and angrily told him how dare he charge me when he said he wasn't. He proceeds to read to me what he had said he read before, that said he could. When he got done I told him he needed to read it again because there was nothing there that said he could charge me. We had a very long discussion and I finally conceded but I told him he better be careful because if he made another mistake he would be eating my application and refunding my money.

Several days later he emails a good faith estimate, now that really made me angry because along with that were other papers which he wanted me to docusign. When I saw the figures on the good faith estimate I would not sign the papers, the closing cost came up to $5190. Again I called, telling him that he told me that the closing cost would not be more than $3000 and I told him that he could not exceed $4000. He told me it was just an estimate I should just sign, it didn't mean that it was going to be that amount and I flat told him if I signed that meant it could be that amount so I would not sign and I was not getting the loan just refund my money. He told me okay.

Several days went by, I didn't see a credit on my card. I called my loan officer and had to leave a message, which he never answered. I emailed him and told him that he needed to credit my card. He sent back a message saying he has nothing to do with it because he was no longer my loan officer. As you know I disputed, but the mistake I made was the credit card company asked me if the bank said that they would credit it, I told them yes, the credit card company said I had to wait another 15 days before I could dispute. I knew that I could make the bank credit the card quicker if I emailed them and threaten them. So I did. I emailed my loan officer telling I was going to dispute then go to BBB and then to Rip Off Report and then to Consumer Complaint. He never answered, but in 3 days I had my money.

I decided to check around and went with Quicken Loans they were much more organized and told me pretty much what they were going to do upfront. Here again I had a problem when it came time to sign contracts, I had questions, the loan officer said he would find out and I could sign the contract the next day. That was the day the government came back to order and interest fell. I didn't know that when I signed the contract, they had one interest locked in on the contract but on the computer they had an area you could go into which was called loan summary and they had a lower rate locked in. I called and talked to someone who was processing the loan and asked him about this, which rate was I getting He told me the lower. I asked if it went with my closing cost on the contract he said yes. I just let it go. Time passed and then a good faith estimate pops up saying if I want the lower rate I would have to pay $7000 in closing cost. As you know, I was angry and I called my loan processor. She said there wasn't anything she could do I needed to talk to my loan officer. So I call him. He didn't seem to know anything he said that he didn't see the lower interest rate in the loan summary. I told him he needed to be very careful because whenever I see something that is different I print it off so if you changed it I have it printed. He didn't know what to do so he got his manager. We argued, but nothing really was accomplished although he wanted me to fax over the sheet, which I did. I told them that the interest dropped several times that day and the person who put in figures in the loan summary probably went by what the interest was and not what was written on the application, considering you are to be charge the interest of the day you sign, but no he did not agree with me. I could not find proof of what the interest was that day so it was hard for me to really do anything, but I just warned him when it came to closing you better have all your figures right or I won't sign. I have walked out of a title company before because a loan company did not do their work properly.

The most important thing is keep watch on those figures even at closing, especially at closing because they will change them on you and you better make sure they have a good explanation. You don't have to sign, your interest won't be locked any longer so keep an eye on the rate. For me it doesn't matter because I really don't need the loan I am only using it as a back up plan and to help build savings. You may need it, but don't let them screw you.