Posted on: 09th Jun, 2011 12:36 pm
I contacted someone who I thought was a direct lender, it turns out he is just a broker... anyway, that really isn't my issue. After faxing to him copies of dr license, bank statements, 401K statements, payroll stubbs, etc.
He said he found a lender and that I was pre-approved. (interest rate of 4.75) He sent me a pre-approval letter. (from a different lender) So, I made an offer on a home, sent him copies of the contract but he refuses to give me a good faith estimate, saying he doesn't want to "lock me in". I'm sorry, but I want to know what all I am being charged for on the front end.
My question.. is this common practice to refuse a good faith estimate?
My other question, do I have to start over, if so, where?
This is an FHA loan.
He said he found a lender and that I was pre-approved. (interest rate of 4.75) He sent me a pre-approval letter. (from a different lender) So, I made an offer on a home, sent him copies of the contract but he refuses to give me a good faith estimate, saying he doesn't want to "lock me in". I'm sorry, but I want to know what all I am being charged for on the front end.
My question.. is this common practice to refuse a good faith estimate?
My other question, do I have to start over, if so, where?
This is an FHA loan.
No, this is a violation of RESPA Real Estate Settlement and Procedures Act. The broker is required to send you disclosures so is the funding lender. The lender should have sent out a package to you, making sure you were the one to apply for the loan. If he wont provide you the GFE, they are hiding something. Run for the hills if they dont provide immediately.
I am sorry you other question, if you need to start over, you need a good loan officer, who can take you documents and get you approved asap, since you have already lost time. What state are you in?
I'm in Mississippi
I dont lend in MS, but if you have any further issues finding what you want from your current broker, or if you cant find another lender, let me know and I can make some calls for you.
Its time to get the scum out of the lending industry. Your loan office is playing games with you that violate the law and Im sure he has and is doing it to others. Report him immediately to your attorney general and get this scum out of the industry.
I see no real advantage to dealing with a mortgage broker these days but there are a number of disadvantages such as what you are experiencing.
Find a reputable direct lender that processes, underwrites, issues approvals, rate locks and committment letters directly versus going through a middle man.
There are a number of direct lenders that operate online that offer excellent rates/fees and programs. They also offer immediate quotes that make them transparent as well as helping keep them honest.
Find a reputable direct lender that processes, underwrites, issues approvals, rate locks and committment letters directly versus going through a middle man.
There are a number of direct lenders that operate online that offer excellent rates/fees and programs. They also offer immediate quotes that make them transparent as well as helping keep them honest.
Failing to issue a GFE isn't just illegal; it also tells me that the guy is dishonest, afraid to compete with others (because he can't); and he's skating on very thin ice.
