Posted on: 16th Dec, 2009 09:27 am
We were approved for two loans (conforming & home equity) a month ago, received all of the paperwork, good faith estimate, and were under the impression that all was well. We put down $10K in earnest money, have 25% of the down required to purchase this house, and are scheduled to close in three days. Our credit rating is 817, and this new house will cost us about an extra $100 more per month in mortgage than our current house. Last week, I asked my banker for another good faith estimate because it didn't reflect several credits we were going to receive. When the new estimate arrived, I noticed it was off by the amount of the second loan. I called him and asked where the second loan amount was. He then said the second loan is still pending approval. I found this really odd since they never called me to tell me there was a problem. I asked what the hold up was and he said they had based the second loan on my salary from last year (I received a substantial bonus last year), but they took a look at my salary this year and realized I wasn't going to be making as much as last year. the first loan is a 4.875% for 30 years, the second was supposed to be at 5%. I intend to pay the second loan off within months. The bank now wants to give me a higher conforming loan at a higher interest rate. I can't help but feel like they pulled a bait & switch. I don't know what to do?
bait and switch isn't generally around these days, but you never do know, i suppose. i think, more likely, that there was a different underwriter for the second mortgage than on the first - that makes no sense, of course. if you're doing a piggyback (as it's known), the underwriter ought to be looking at both of the loans for qualifying purposes. you could, of course, run to another lender (with no guarantees), but you'd lose out on your imminent closing date, of course. other than that, maybe you can use your powers of persuasion to good effect. i'm afraid i don't have much better news, though.
Thanks George. It is a different underwriter for the second mortgage. Same bank, but the second was a Line of Credit loan.
that's not just silly, it's inefficient. is there a "higher power" that you can make your entreaties to in order to have this reviewed again?
>>We were approved for two loans (conforming & home equity) a month ago
Was the approvals you received a month ago "conditional"?
I wonder when your Loan Officer found out about the salary issue. Those types of conditions come from an Underwriter during the first round of conditions, which would have been a while ago. I would have told my clients about that condition upon receipt.
Was the approvals you received a month ago "conditional"?
I wonder when your Loan Officer found out about the salary issue. Those types of conditions come from an Underwriter during the first round of conditions, which would have been a while ago. I would have told my clients about that condition upon receipt.
i agree...both mortgages would have had to be reviewed simultaneously, or at worst, one almost immediately after the other. in that case, your friendly local loan officer was probably too timid to bring up bad news at that point - maybe thought there was a chance to have the findings reviewed by someone else who decided not to make any changes.
but raymond is correct - you should have known about this long ago.
but raymond is correct - you should have known about this long ago.