| You already know to shop around and compare rates and to get a fixed rate and not a variable or balloon rate. You know to haggle with the closing costs and to get a home inspection. So, the simplest and what should be the most obvious piece of advice that may easily be overlooked is, get everything in writing.
Once you have found a knowledgeable buyers agent, dream home, and then a mortgage company or bank that you are happy with and feel you can trust, do not get comfortable and complacent. Get everything they say in writing. If you've made an offer and it was accepted don't think it is over yet, it's not.
After I had done all of my homework and made all of my well thought-out decisions, I signed the application for the loan. It was a long process. The mortgage broker seemed very knowledgeable and professional. He explained to me that the documents that I was signing were the application for the loan and the 5.5% interest rate was floating and not to worry that it won't be the actual rate and that it should go down and when it does he would call us to lock it in.
I took him at his word. It did say "floating" on the application after all, so what he was saying had to be true. Even though we were sitting right near a copy machine he said he would go scan all of the documents that I had signed and email them to me the next day. Ten days passed by however and I did not hear from him.
I emailed the broker asking what the current rate was and if the appraisals had been done yet. He responded that he had actually locked in the rate at 5% and the appraisals were done and went well. I thought it was strange that he had locked the rate at 5% without calling me about it. I asked him for a copy of all of the paper work and he said I would get it at the closing. He reiterated that I should not worry about a thing because everything was all set and he had personally locked the rate in at 5% because he knew what he was doing and his goal was to get us the best rate.
About a week passes by and I get an email from the mortgage broker saying that he needed a credit card to order the 2nd appraisal. I thought that was strange because he had previously said both appraisals went fine. With a lapse in judgment I let that slip by and paid anyway. I asked him what they were going to charge my card. He told me it would be $550 total.
A week later I see my credit card statement and there is a charge pending from the appraisal company for $610. I text the mortgage broker to ask him what happened and he replied that he had no idea and that he would get back to me right away.
A few days pass by without communication. I then email the mortgage broker a copy of my credit card statement and ask why the pending $610 has now turned into a charge when I was told that it would only be $550. I also told him I didn't want to wait for the closing for all the paper work to be sent to me and to please send me a copy of all of the papers I had signed, as well as some kind of documentation saying that the rate was locked at 5%. He told me he would send the documents soon, but he did not have anything with the rate information available and he would have to request it from the bank.
Finally the closing date arrives. I call my buyers agent, who says the mortgage broker told her that there was a clerical error that is holding up the closing date and that the brokers lawyer is supposed to call me to go over everything.
Not having heard from anyone, I called the broker the next day. I asked him what happened with the closing date and when will he be sending me copies of the paper work. He doesn't mention anything about the rate or any clerical error, but instead sounds surprised that the lawyer didn't call us to say that all we are waiting for is the title search. He insists he will send me the paperwork first thing Monday. I ask about the appraisal charges again and he explained that the extra fee was because he had to put a rush on the appraisal. I asked him if there is anyway to credit the extra $60 since it was not authorized which got him defensive, he says there is nothing he can do and the call ends.
Monday, a full month after signing all of the papers, I finally get copies of everything I signed. I notic |
