Posted on: 07th Jan, 2008 02:38 am
I'm in the state of Kentucky and in process of refinancing the ARM. The broker said we'll be able to get 6.2%. So we filled the application within 3 days and he sent the appraiser to determine the property value. 2 months from then on, he's still working to make the loan available because our credit isn't good enough. Finally he's saying that we could get a rate of 7% which we felt was too high, so we decided to wait till the next year. Now, it's only a few days back that we get the appraisal costs that that's $500. we're still going on with our ARM rate itself and what I want to know is, whether it's ok to pay because we thought we’d stay with the ARM till next year but the broker has already gone ahead with the appraisal?
Did you sign something stating you would pay for the appraisal? If not, then the broker is just trying to cut their expenses by putting the cost of the appraisal on you, and you do not have to pay it. $500 for an appraisal in Kentucky is pretty expensive, was it more than just an appraisal? Like is this a rental property and you needed a rent schedule & operating income expense?
No it isn't a rental property; everything was verbal, like i said we decided to go for it but then since he was taking time in getting us the loan, we too didn't inform him that we'd made up our mind not to go for it this year and wait till our credit improves. we thought he won't proceed since we had just applied and had not been approved. But the broker has gone with the appraisal much before i even signed any loan doc. So, that's why i want to know whether i should pay. I wouldn't want to but just like to confirm that the lender won't sue me for the money.
Lender won't sue you unless you signed something stating you would pay for an appraisal... did you sign something like that? If not, don't worry about it. Tell the loan officer you didn't authorize the appraisal, if they continue to bug you, shows a lot about their character.
You mean it's better to sign a deal with some other broker or lender?
I'm saying it's better to check around for terms. Did they ever explain why the rate was 7% and not in the 6's like you anticipated?
The broker ordered it so it is their responsibilty to pay it.