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Company Loan Type APR Est. Pmt.

loan cancellation

Posted on: 13th Jun, 2011 10:28 pm
I just signed the paperwork for a loan, but the service was very bad as the loan officer said that she waived the fee but she didn't finally, she was a bit ugly at the end, which made me upset. But me, didn't know how to respond in that situation, signed the paperwork even I was upset about the services. Right now when I'm home, I regreted it. There is no application fee on the application, but there is unwriting fee and document prep fee, I didn't pay anything yet, will I get a penalty if I change my mind at this point?

Thanks.
Welcome Guest,

As far as I know, you will get 3 business days time in order to cancel the deal without any penalty. If you're not happy with the whole deal, you can cancel it immediately. However, if you cancel the deal after the 3 days time period, you may have to pay the penalty.
Posted on: 13th Jun, 2011 11:41 pm
if it was a purchase loan, then you would not be able to cancel. if it was a refinance, then most states allow the 3 day right of rescission. check your loan docs for the right to cancel form and send it in if you are unhappy with your service and/or loan. most loans do not have a prepayment penalty, so if you did a refi and are unhappy and you passed the 3 days, your only option would be to refi again at lower terms. good luck
Posted on: 14th Jun, 2011 08:15 am
It sounds like this is the preparatory phase of an application for a loan, rather than a closing.

Loan officers don't close loans, and if one has done so, I'd be calling the AG's office immediately to question why and what would be done about it.

If I'm right and this is preliminary stuff, then there's no reason for you to move forward, New Comer. By all means, call up this knucklehead and tell her that you're moving on to someone who'll actually care about your business and have a reasonable attitude.
Posted on: 14th Jun, 2011 11:51 am
Thanks everyone for the advice!!!
I didn't see any form/ instruction / policy for cancellation, so not sure about the 3 day thing. Only in the doc "Certification of Receipt of GFE and Intent to proceed" mentioned I received the GFE within 3 business day and there is no fee upfront except the credit report (but I didn't pay anything).
It is a purchase loan (FHA) for home, they still need one more doc from me as I forgot to bring it yesterday, so I guess they 've not proceed too far...
I still upset today as I was mad how come I was so stupid should have just walk away...
Posted on: 14th Jun, 2011 06:18 pm
New Comer - as I stated earlier, this looks like merely the beginning stages of a loan application. There is no 3-day period that deals with cancellation of such a thing. You can simply walk away and find yourself a loan officer with whom you're comfortable and in whom you're confident. If your existing loan officer is a fool and you don't want to do business there, you can do one of two things: 1) politely tell the fool that she won't be getting your business, and advise her of why that is the case; 2) don't say a word and simply move on to another, trustworthy loan officer, who'll keep his or her word and treat you like the valuable commodity you are - a customer, who deserves fair and honest treatment.
Posted on: 14th Jun, 2011 06:33 pm
Will they charge me at this time for the credit report fee which they already print it out for me? Also the doc prep fee on the GFE?
Thanks again!! It has been great help!!
Posted on: 14th Jun, 2011 06:39 pm
If they charge you for the credit report, that would be unusual in the current mortgage climate, and you ought to simply say a polite "no" if they should request that you do so. Virtually all lenders run credit routinely for people in a prequalifying scenario without charge, so I'd hope this company would follow suit; if they don't, please don't feel compelled to pay for it.

No other fees ought to be charged to you, either. You, in good faith, made an inquiry about a possible loan. You don't feel that you were treated with the respect due any prospective customer, and you need not be disrespected any further with a request for fees that they're not really in need of to begin with.

Please don't give them a nickel.
Posted on: 14th Jun, 2011 06:59 pm
I sent an email to the loan officer this morning, I explained to her the reason of my application withdrawal. Haven't heard back from her yet, hopefully everything will be ok.
Thanks a lot for the help!!! You all have been very helpful.!!!
Posted on: 15th Jun, 2011 10:16 pm
In my opinion, you won't hear back from the loan officer. Unfortunately for people in her position, borrowers (more precisely, potential borrowers) come and go, and she's probably already moved on.

That's not to be harsh to the loan officer in question, but simply stating that it's fact of how she needs to react to such news. It's an annoyance when one spends copious amounts of time working with a potential client only to discover that he or she has moved on; in your case, it seems neither of you invested a great deal of time in each other, so that makes it much easier to move on and find a suitable replacement.

I commend you for taking the time to let her know that you've decided to go in a different direction. Would that more people would be so kind.
Posted on: 16th Jun, 2011 10:40 am
I just remembered today the loan officer is out of town till next week (as she mentioned about it when she turned ugly: she said she is leaving tmr and right now late pm still helping me out on the loan .... ).

So I just wana double check my loan withdrawal notice get taken care of, I called the office and her assistant helped me out. Her assistant asked me to send her a email mentioning about the withdrawal so she can cancel the file. She said I may get charged for the credit report fee, which is about $35-50. I asked her people come get loan prequalification will get a free credit report even they don't come back, she said it is up to the loan officer, so I need to wait till next week when the loan officer come back and see if she charge me that fee.

The assistant did ask me do I want to talk to the supervisor, I said no, as I felt like it has been too much, and I dont want to make it too big. Maybe I should call tmr to get the contact info of the supervisor, in case if loan officer charge me the credit report fee I can bring this up to her boss. I dont want to give them a penny. So if they send me a bill for credit report fee, can I ignore it?

I just wana explain myself instead of just take off, so I sent that email. She already blamed on me saying I dont trust her for the good deal, keep comparing the rate (when she turned ugly). I dont think these people will appreciate the client spending time to tell her the reason, they only care if they get the business...
Posted on: 16th Jun, 2011 06:54 pm
Just tell the loan officer you're not paying for the credit report and leave it at that. She won't have enough fortitude to push you on it, I'm certain. You know that folk walk out all the time with free credit reports and they never set foot back there again. Why should you be any different? Stick to your guns!

Don't bother with a "supervisor." That will turn into a dragged out solicitation call, seeking your return to the office to "work things out" and get you on board as their customer. You've already suffered enough.

Your final thought is correct - they only care about getting the business. If a loan officer gets pushy or rude, that's completely out of control. You said your peace, you finished up the business you had by telling them you're no longer interested...now retain your inner peace by ignoring them, and please refuse to pay for their crummy credit report that they give away all day long.
Posted on: 16th Jun, 2011 07:17 pm
Finally today get a reply from the loan officer, she said she was out of town so did not reply (guess her assistant told her I called). She said she is sorry that I felt that way (as I told her I was upse I did explain to her in quite details), and wish me good luck with my financing. Good, at least no hard feeling and no arguing on fees.

BTW, I've a quick question: what is APR? because this loan officer gave me a very good rate: 3.5% 15 yrs, but the APR is 4.131%. Another bank, they have a higher rate: 3.875%, but the APR is lower at 4.057%? So, which one is the one calculating the interest?

Mr. Akerley, thank you so much for the advice/help!! Im a first time home buyer buying a house from friend, seller suggested no realtor to cut down on cost, has been very stressful figuring everything by myself from scratch. Im so glad that I found this forum online and you definitely help lowering my stress level. Thx!
Posted on: 17th Jun, 2011 08:43 pm
It's a distinct pleasure to help out in any way.

APR is Annual Percentage Rate - it's essentially an "effective" rate - always going to be different from the interest rate you're getting on a loan. It takes into account what are considered "prepaid finance charges" - these ought to have been spelled out on the GFE you received from the first lender, and you'd be able to compare if you get another GFE from any other lender (Good Faith Estimate, in case you don't like the initials.

In this case, the second lender's fees seem to be lower despite the higher rate, or in other words, you pay a little more in fees for a lower rate with the first lender. It works both ways - it'd be a wonderful thing to have a realtor, if only because of the education you'd receive.

By all means, contact an attorney before you get too, too deep into this, to go over documents, review contract(s), etc.

If your stress level and blood pressure are coming down, that's a wonderful thing. Let's hope they stay down throughout the process.
Posted on: 18th Jun, 2011 08:45 am
So, that means since the APR of the first lender is higher, I pay more for the whole 15 yrs overall as the higher fees make up for the lower interest rate?
I did regret not having a realtor, but at the time I think about it we've gone too far and its the agreement with the seller at the beginning. I won't do that again, has been enough suffering but at least I learned a lesson.
Hopefully will find a better mortgage Co at least they are honest and treasure me as a customer.
Thanks again!! you've been very helpful and supportive!
Posted on: 18th Jun, 2011 03:56 pm
The APR is less important, honestly, than your confidence in a lender and their willingness to treat you honestly and forthrightly. The "treasuring" isn't going to come from a corporate setting, but you'll find many loan officers in the world who do indeed treasure their customers. You can see this by how they treat people.

If you have a scintilla of trepidation about the rates and APRs, here's a wonderful method by which you can save substantial thousands of dollars.

First - naturally - make every payment when it is due. But in addition to that, be certain to prepay your principal balance. Even if you only add $100 per month to your payment, again specifying principal curtailment, you'll see immediate results in the reduction of interest costs. The end result will actually be that you'll cut years off your mortgage.
Posted on: 18th Jun, 2011 08:18 pm
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