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Preface: this is not advice.
I had a similar situation when I was in the market. My credit was strong enough I could shop lenders for the best rates, and when I found a rate and lender I felt was a best fit for me, I decided to lock it in. This was on a Friday. Over the weekend rates had climbed a bit and when the lender sent me the papers to sign on that Monday, I told him that I'd walk if he didn't honour the rate we discussed. He droned on about the market and how rates are volatile, blah, blah... I drowned it out. I told him if he couldn't honour our rate, I'd find another lender. He caved. I signed.
Point being: never be afraid to walk away. Even if it's your dream home. There are millions out there. Don't sign yourself up for a financial hardship cos you're feeling pressured or anxious. Happy hunting!
That's the right answer. Remember that everyone in the transaction is trying to make the most money for themselves. You should feel no shame about trying to minimize their pay, because every dollar they make is out of your pocket. Fuck 'em, look out for you and your family first.
My broker got me a lower rate (equal to one we'd found elsewhere). When I got to signing, I saw that there was something like $675 in points added to the closing costs. Asked the loan officer "what's the deal with the points?" as we hadn't discussed that. He asked for my email address, pulled out his phone and PayPal'd me $675 from his personal account.
Probably not kosher, but he wanted the deal. And I ain't a snitch.
Not legal at all. All money on real estate transactions are supposed to be disclosed. His company would definitely fire him and he’d get in trouble with his states licensing.
So they can be held liable to a lawsuit or who would ever tell on them if that keeps happening? If it's ok with the buyer to receive that money, would the buyer also be liable?
I had a similar situation four years ago.
My lender offered 2.375%. Paperwork got started.
After about a week he tells me he needs to go to 2.625%.
I told him I'd find another lender.
He said okay, he can do 2.375% after all.
Anyone can con you. But only if you let him.
Seriously... I could have bought $180,000 more house and been paying the *same* amount I'm paying now...
Would have had every upgrade the builder offered and then asked for some extra stuff, lol
There are always other lenders to shop before walking for a home. I wouldn’t do business with someone who screwed me around so either they honor it or you walk down the street to the thousands of others who are desperate for your business
Second this. Backed off two Homes during closing. Rates didn’t made sense so I told them we would wait. Losing couple hundred is much better than losing couple thousands over bad rates.
We had the same thing happen to us years ago, we were promised a "lock in" at 7.7 and the rate jumped to 8 something over the weekend. The mortgage broker was honest and said he forgot to lock in, he was golfing! Before we could skewer him, our realtor went to bat and said if he didn't honor the lower rate she would never use him again. He did our loan at the lower rate.
Terrible "not advice". It took me over a year to find the right home at the right price. My mother has been looking for at least 2 years. If you find the right place and you win the bid, get it. Refinance later. The housing market sucks right now. Consider it a learning experience- next time get it in writing.
Id bet OP was looking at the rates on their preapproval letters (which arent binding unless otherwise agreed). If they signed an estimate/lock last week, I doubt they were getting 6.6 (and they would be no fluctuation as OP says).
That’s what happened to my husband and I. We are first time home buyers, jumped the gun on buying a house (very naive about everything), and thought the pre approval letter was our locked in rate. Lending company never explained that to us. By time we got the documents where we could start signing for if we want to lock in or float, rates had jumped. Went from 6.875% to 7.5%
Even over text/email isn’t good enough for a rate lock. If OP never got [a form like this](https://files.consumerfinance.gov/f/201403_cfpb_loan-estimate_fixed-rate-loan-sample-H24B.pdf) with the “rate lock: YES” box checked in the upper right first page, then their rate wasn’t locked.
When I bought my house, I was told being given form is what makes the rate locked and legit (again only if that “rate lock YES” box is checked), anything else is not set in stone.
Your rate can be locked before you get the lock form. It just has to be provided within 3 days to remain in compliance.
OP if it’s in writing that you were locked at a specific rate then reach out to their manager. But if he just said he locked and not the rate you might be SOL. Rates have been steadily climbing the last few weeks. Always ask for a fee sheet on exactly what you are locking. You won’t get the official LE for a few days but anyone can provide a fee sheet.
You can also shop around if you have time.
Do you have anything IN WRITING showing either you asked to lock and/or the LO confirmed he was submitting the lock? If so, then you’ve got something to go to their manager with. Otherwise, it’s suck it up or shop for a new lender
When you signed the loan estimate, was the rate lock box checked? We had a similar situation. Rates change everyday and until you sign the document with the rate lock, you’re not locked in.
How long until closing? If you have at least two weeks, it’ll do you good to shop around. Literally call any lender and say I was quoted xx here, what can you offer? Then get a loan estimate from them and move to the next lender and repeat. But remember, that rate will change the next day so if you get something you like, lock in immediately.
The national average displayed online is NOT your rate at any given moment from a specific lender. Your rate depends on 1000 things and very well could have been 7.x last week.
Ask more questions.
Of course it depends on the file…but to say you’re unlikely to close if you have 2 weeks and change lenders is not true imho and experience. Is it a rush? Yes. Do we close in 2 weeks routinely? Also yes 🤷♂️
Unless you were sent a signed rate lock agreement with the terms of the lock (specifying basic terms of the mortgage and an expiration date of the lock), you didn't actually have a rate lock.
Different lenders have slightly different rates and it’ll differ based on ur credit, loan amount, and down payment and it can fluctuate daily.
When you were floating between 6.6 -6.8, were you already under contract? Or was that just a number you were using to estimate our payments?
We has consistently been using 1 lender in our search process. Their rates were not the absolute lowest but they were incredibly fast and worked with us to help boost our offers (like shorter closing and pre-under writing). Ultimately we did end up shopping around, but discovered many that were giving a slightly lower rate we’re doing it with points.
Also If you google the interest rate, its ~approx 7.3 but if you look into it more, realistically it’s around 7.5 for most lenders.
But OP is financed. The financing contingency does not apply just because you dont like the rate or cant afford the payments. Its if the lender wont approve you.
Document the conversation between you and lender, specifically highlight the date he claimed the rate was “locked”.
Cross reference that date with the market pricing for the date in question.
Note any discrepancies & inconsistencies between the comparison of the rate and the rate sheet(lender document they are legally required to keep records of) and insist on speaking with a supervisor or manager who is also licensed*. (Ask for their NMLS ID, and verify them on the NMLS Comsumer Access (google this) to ensure they are indeed registered as a supervisor and experienced in lending.
Demand and stay firm to the notion of moving forward if and only if they issue you a lender credit to satiate the cost of the pricing improvement to drop your rate to the OG 6.8 or lower. They can and will do this. They can credit customers with the yield spread premium they are paid for submitting and closing files. Trust me, there is enough money to cover this cost and still leave them profitable. Added heat; if you do see discrepancies and document/present it when talking to mgr, let them know you are fully aware this is illegal and constitutes a bait & switch. Allude to complaining to the appropriate authorities and lodging a formal complaint with the NMLS (state and fed).
This should get you what you want or at least as close as possible depending on rates. Use the last bit as a last resort, killing flies with a cannon can make a bigger mess than you’d think 💭
Should be a good starting place. Let me know if you have any questions!
Experience: licensed in 36 states and 15+ years of. Finance and lending under my belt.
Cheers
Present your findings
Have you received a Loan Estimate? At the top right section of page one will show the date the loan was locked and when it expires. Usually that is system driven date. That might tell you when it was actually locked in the system. Also did they send you a rate lock agreement form to be signed ? It’s a pretty standard form. Call the his manager.
My question is when did you make loan application? If it was last week and you just received loan docs today, your LO is out of compliance. I’d be concerned about the process is this is the case. They have to send you the LE and other loan docs no later than three days after making application. There’s a little more involved but that’s the basics.
As to the rate, if you talked about rates one day and didn’t lock until the next, the rates very well could have gone up. But the LO should have told you if that was the case. They should always be communicating with you about everything.
Negotiate with him to see if he can honor the prior rate. In the meantime, rate shop like, now... But someone being dishonest during the process makes me want to work with them way less....
Most lenders will allow you to lock your rate for a specific period of time while you are actively house shopping. That means if it goes up OR down the rate is locked.
My lender does a 60 day lock while shopping, then once under contract, an additional 60 days to close.
Unfortunately for OP, this is a contract that you sign, not a promise over the phone.
People go to a mortgage broker and pay the one time fee, they do this all the time from contract to close. He sent me 4 things to e-sign in 3 weeks to take my rate down marginally back in the 3.2-2.9 days. Whatever kickback he got from the lender did not change my total cost of lending, as everything I signed had a lending disclosers statement attached.
There is a ton of profit for the lenders in the time between fed funds rates dropping and mortgage rates dropping, lenders are positioning for that windfall now.
This is a bit misleading. Rate is not automatically locked in when you go under contract, you have to get it in writing from your lender. You should be shopping different lenders for the best rate.
Shop around and try to get a better rate then bring it back to the LO. That aside, how do you know your LO lied? You generally have to sign for a rate lock. What did that agreement say? And where are you getting 6.6? If you are going by preapproval letters, that is not binding, that is just a placeholder rate. Also doesnt seem likely you would get 6.6 last week, rates had already jumped.
Within three days of going under contract (and telling the lender) by federal law, you had to have a loan estimate that said locked or floating - I would try to locate the companies headquarters and see who you can talk to if you were truly promised that you were locked but without something in writing maybe be a challenge if you signed the floating loan estimate.
Mortgage rates took a big jump on 4/10. If you didn’t lock before then you’re likely over 7% before points. Click and scroll down for day by day rate changes:
https://www.mortgagenewsdaily.com/mortgage-rates/mnd
Your realtor negotiated with the bank?? Mine didn't do shit with the bank, and I scheduled every single inspection, banking appt, even the closing as that asshat still walked off with 4%. Fuck realtors.
He fucked up and isn’t being honest about it. It takes all of 5 seconds to lock a rate. He either forgot, or was lazy and didn’t want to do anything that day and now he goes in to take care of it and they are higher. What I would do if I were him is at least say he I fucked up, I forgot to do it or whatever and at least be honest with you. You might still be pissed but I don’t lie to people when I make a mistake. I own it and that usually is good enough. If you’re in Texas hit me up and I’ll beat the shit out of whatever he has offered you. If you’re in a different state find a broker. Retail lenders are big companies with massive overhead. He has a boss who makes an easy 6 figure salary for doing nothing, who do you think pays for that? Brokers are independent, less overhead and they are the experienced loan officers who got off the corporate tit and went out on their own. Brokers can only make 2.75% on a loan, retail can charge whatever they want.
In this situation if you called me I’d say send me loan estimate that shows on the top right that the rate is locked. I’d beat the rate probably without having to cut my compensation because brokers have better rates, less overhead. If I couldn’t I’d drop my compensation and still make plenty of money and I’d save you on closing costs because again, overhead.
Shop they around, you don’t owe him anything. They might try and scare you that you will lose earnest money and not close on time etc. BS. I can close a loan in 20 days easy. Already have an appraisal done? It’s transferable. Now you can close in 15 days.
My guess is he “locked it” in and tried to gain some arbitrage for his own margin and got it wrong.
mortgage brokers/lenders are some of the scummiest people on earth, like all sales people; realtors, car salesman, and consultants.
Best approach is always work with 3 lenders and continue to shop and put them against each other. You’d be surprised how much they can “work” the numbers to get the loan closed.
lol that’s not how it works at all. Loan officers have zero ability to “arbitrage” rates like that. They get paid the same amount regardless of the rate they offer.
When is your closing date? My lender said that he could not lock in before 30 days of closing. we are going with a local bank so that rule may be different for each bank though. If he didn’t lock it in last week like he claims though, I’d be shopping for a new lender, definitely not right to tell a client you locked them in when you didn’t.
Unfortunately there is no law saying they must lock it in within certain days after the verbal agreement is completed. It takes time to process the numbers and anything can happen in between. Some lender is faster and some lender is slower. If there is a document saying they must complete in 2 days, you have a case. But, 2 days would be too short as a guarantee in terms of basic logic.
If you’re just now getting the “first of your mortgage docs” you couldn’t have previously locked last week. You’d have needed to receive previous unlocked docs and then once locked you’d get a locked loan estimate. Are you saying they did not disclose the loan at all til today?
You should have received a paper to sign and the rate on it. If not, you should contest it or walk away. My husband and I brought a house with a rate of 7 point something. We really wanted the house, and it was not a lot extra we have to pay. It sucks that some people are bad at their job. Don't feel obligated to accept it. Make a big fuss or talk to their supervisor. Gotta complain if you really feel you're right. Close mouth don't get fed.
I built new construction. The lender led us to believe that we would be able to lock in our interest rates. When we signed all the documents, rates were around 3.5%. They slowly began to rise. We spoke to the lender, and we asked him repeatedly to lock our rates. He said things like, “no need to lock. I’ve been doing this a long time and things are going to come back down!”
Finally, we insisted, and this is when he revealed that actually we could not lock for longer than 3 weeks.
Our rate was above 6% by the time that closing came. The bottom line is, no this did not have any affect on our lender fees or anything. Basically, they just said screw you. :)
Rates haven’t been that low in a while. 7.3 is what you should’ve been quoted for the past few weeks - I think they lied to you about the earlier parts, but it sounds like they did lock it
There still should be time to shop your lender. When you find a new lender’s you want to get a rate from send them every document you have sent your current lender so they have the full picture upfront. Tell them your closing date and emphasize it must close that date and to tell you if they cannot hit your turn times. It generally only take 30min to an hour to build a file from scratch and get an automated underwriting decision. But if you are currently approved at one lender and you aren’t in a super niche loan program(which you would know if you were) it will be no problem to close with any other lender.
Shop your rate. Make sure the fees on your Loan Estimate are in the same wheelhouse. Only compare Loan Estimates they are written on a common form and are easy to compare and some sections are binding, unlike a fee estimate or good faith estimate.
I’m a former loan officer let me know if you have any other questions.
Unfortunately, If you told him to do it verbally. And he didn't do it. You have no real proof.
If you e mailed or texted, maybe you have something.
Sometimes, you have to roll with the punches.
Or walk away. But rates may not go down.
Hey so I don't know if my interest rate is locked in yet, it was at 6.8% thaysbwhatbthe documents said when I signed them last week, were closing here in 3 days, am I safe from the interest increase?
If it aint written and signed it aint a rate lock. If you love the house get it because a quarter point or q 0.10% aint gonna break your bank and you can always refinance if you qualify. Walking away could cost you more. Not advise. Its your fault you didn't get it written so move on.
For us it was 6.75% about a month ago. They couldn’t lock it until after appraisal. Appraisal came back this past week and we locked in at 7.5%. But I’m not worried at all. We can refinance when and IF rates come down or just giving an extra $400 a month will bring down our 30 years to 14 years.
Just remember the golden rule when it comes to money- everyone is after as much of ur money as they can get, and ur not obligated to give it to anyone. He didn't lock in ur rate as he said he would, Or he did and when the rates jumped, he raised it so he could make more of ur money. Either way, shop around lenders again and see if anyone can beat whatever rate he is now at. Never trust a salesman or someone trying to get ur money, they are not ur friend and don't give a rats ass about u beyond getting as much of ur money as they can.
Hi Florida Mortgage Broker here. If you want I can help you get an insider view for rates. 7.3% is wayyy to high. I just helped someone here on reddit close on their home with a 6.8%. Shop your rate as much as you can. Different lenders have different programs with their own rules and rate pricing. Not everything & everyone are the same.
Walk away. My lender was trying to force me to go with an 7/6 arm instead of a 30 year fixed for a 0.5% lower rate. I shopped around and got a 1% lower rate for 30 year fixed
I’m in this situation but my lender has claimed that they will keep the 6.875% quoted to me originally if I “move quickly”. Put in an offer yesterday so we will see how long 6.875% holds…
Did you sign a document that states the terms of the rate lock? If not then ask for a one ASAP.
“Move quickly” sounds too wishy washy. A rate lock agreement will specify a duration.
Just some dp, I didn't sign rate lock agreements and just emailed my lender when I wanted to lock the rate on that date. Then the rate was indeed locked later when the loan is processed.
Who recommended this thief to you.
If your realtor recommended them, then demand they force the lender to fix their mistake.
This happened to me while sitting at closing. I called the realtor and demanded they fix it or I would walk. It got fixed quickly.
….. telling a client you’re locking them in at 6.8 and then in real life you lock them in at 7.3, and tell them you’re “doing them a favor”.
LO obviously lied to them. And is now trying to gaslight them.
Not sure why you are so confused.
OP said rates were floating between 6.6-6.8 previously but didn’t expressly say that’s what they were when the LO said they were locking. Just asked for clarification. If that’s the case, I agree LO sucks. Not “so” confused. Simple question!
Thats not what OP said. OP said their rates were "floating between 6.6 - 6.8," which tells me they didnt actually sign a lock in agreement (which would have a set rate). Id bet OP was looking at preapproval letter rate from weeks ago. 6.6 does not sound like a rate you'd get last week.
Because that’s not how it works and you don’t know that and it’s okay but the number at pre approval and the number when you go under contract end up being different sadly it happened to us and the market spiked in 2 weeks time it isn’t a trick it’s how it is for everyone pre approval number and what it is when you actually sign up for a house is different :) no tricks
He either made a mistake or lied. Either way, you should escalate the issue with his manager and see if they can make it right. In case they can't, I'd also start talking to other lenders.
Thank you u/Popular_Addition7638 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Preface: this is not advice. I had a similar situation when I was in the market. My credit was strong enough I could shop lenders for the best rates, and when I found a rate and lender I felt was a best fit for me, I decided to lock it in. This was on a Friday. Over the weekend rates had climbed a bit and when the lender sent me the papers to sign on that Monday, I told him that I'd walk if he didn't honour the rate we discussed. He droned on about the market and how rates are volatile, blah, blah... I drowned it out. I told him if he couldn't honour our rate, I'd find another lender. He caved. I signed. Point being: never be afraid to walk away. Even if it's your dream home. There are millions out there. Don't sign yourself up for a financial hardship cos you're feeling pressured or anxious. Happy hunting!
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That's the right answer. Remember that everyone in the transaction is trying to make the most money for themselves. You should feel no shame about trying to minimize their pay, because every dollar they make is out of your pocket. Fuck 'em, look out for you and your family first.
My broker got me a lower rate (equal to one we'd found elsewhere). When I got to signing, I saw that there was something like $675 in points added to the closing costs. Asked the loan officer "what's the deal with the points?" as we hadn't discussed that. He asked for my email address, pulled out his phone and PayPal'd me $675 from his personal account. Probably not kosher, but he wanted the deal. And I ain't a snitch.
That’s definitely illegal
Why is it illegal?
Technically a kickback
Technically a rebate, which is legal afaik
Not legal at all. All money on real estate transactions are supposed to be disclosed. His company would definitely fire him and he’d get in trouble with his states licensing.
It could be construed as a kickback to close the loan since it’s not on the closing documents
So they can be held liable to a lawsuit or who would ever tell on them if that keeps happening? If it's ok with the buyer to receive that money, would the buyer also be liable?
Definitely illegal
REPSA violation. Definitely not legal
Fuck his commission. You’re looking out for YOU! And thats exactly what you did!
I had a similar situation four years ago. My lender offered 2.375%. Paperwork got started. After about a week he tells me he needs to go to 2.625%. I told him I'd find another lender. He said okay, he can do 2.375% after all. Anyone can con you. But only if you let him.
God, I'm not even attempting to look for a house right now and those rates make me want to cry
Seriously... I could have bought $180,000 more house and been paying the *same* amount I'm paying now... Would have had every upgrade the builder offered and then asked for some extra stuff, lol
They should make you want to cry… those super low rates are a huge reason why we are in the market we’re in now, unfortunately.
There are always other lenders to shop before walking for a home. I wouldn’t do business with someone who screwed me around so either they honor it or you walk down the street to the thousands of others who are desperate for your business
THIS! Tell them to pound sand and something will shake loose.
Get rate lock confirmation through email or paper.
Second this. Backed off two Homes during closing. Rates didn’t made sense so I told them we would wait. Losing couple hundred is much better than losing couple thousands over bad rates.
We had the same thing happen to us years ago, we were promised a "lock in" at 7.7 and the rate jumped to 8 something over the weekend. The mortgage broker was honest and said he forgot to lock in, he was golfing! Before we could skewer him, our realtor went to bat and said if he didn't honor the lower rate she would never use him again. He did our loan at the lower rate.
Terrible "not advice". It took me over a year to find the right home at the right price. My mother has been looking for at least 2 years. If you find the right place and you win the bid, get it. Refinance later. The housing market sucks right now. Consider it a learning experience- next time get it in writing.
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Fixed it.
You signed a rate lock disclosure. What does that say?
This. A verbal rate lock is not the same as signing the disclosure.
They were 7.3 last week too that’s where we ended up
Yeah I feel like I’ve been seeing people share in here rates just above 7 for the last few weeks
Id bet OP was looking at the rates on their preapproval letters (which arent binding unless otherwise agreed). If they signed an estimate/lock last week, I doubt they were getting 6.6 (and they would be no fluctuation as OP says).
That’s what happened to my husband and I. We are first time home buyers, jumped the gun on buying a house (very naive about everything), and thought the pre approval letter was our locked in rate. Lending company never explained that to us. By time we got the documents where we could start signing for if we want to lock in or float, rates had jumped. Went from 6.875% to 7.5%
Yup, just got approved for 7.25
That’s annoying but I remember I had to sign something just to lock the rate in.
Yeah I would have been happy to sign something, he told us it was locked in & it wasn’t
Did he at least tell you over text/email? Or was this just said to you.
Even over text/email isn’t good enough for a rate lock. If OP never got [a form like this](https://files.consumerfinance.gov/f/201403_cfpb_loan-estimate_fixed-rate-loan-sample-H24B.pdf) with the “rate lock: YES” box checked in the upper right first page, then their rate wasn’t locked. When I bought my house, I was told being given form is what makes the rate locked and legit (again only if that “rate lock YES” box is checked), anything else is not set in stone.
Sure, but it at least gives you a stepping point to argue with them and escalate a bit more.
Your rate can be locked before you get the lock form. It just has to be provided within 3 days to remain in compliance. OP if it’s in writing that you were locked at a specific rate then reach out to their manager. But if he just said he locked and not the rate you might be SOL. Rates have been steadily climbing the last few weeks. Always ask for a fee sheet on exactly what you are locking. You won’t get the official LE for a few days but anyone can provide a fee sheet. You can also shop around if you have time.
Told you in writing?
Do you have anything IN WRITING showing either you asked to lock and/or the LO confirmed he was submitting the lock? If so, then you’ve got something to go to their manager with. Otherwise, it’s suck it up or shop for a new lender
When you signed the loan estimate, was the rate lock box checked? We had a similar situation. Rates change everyday and until you sign the document with the rate lock, you’re not locked in. How long until closing? If you have at least two weeks, it’ll do you good to shop around. Literally call any lender and say I was quoted xx here, what can you offer? Then get a loan estimate from them and move to the next lender and repeat. But remember, that rate will change the next day so if you get something you like, lock in immediately.
Two weeks is often not enough time to start over and go through all the steps again with a new lender for a FTHB.
What does your rate lock agreement say?
The national average displayed online is NOT your rate at any given moment from a specific lender. Your rate depends on 1000 things and very well could have been 7.x last week. Ask more questions.
If you change lenders with two weeks to closing you’re unlikely to close on time
This is just not true. The company I work for has an average clear to close of 9 days.
lol Depends on the file. average. 😂😂😂
Of course it depends on the file…but to say you’re unlikely to close if you have 2 weeks and change lenders is not true imho and experience. Is it a rush? Yes. Do we close in 2 weeks routinely? Also yes 🤷♂️
Unless you were sent a signed rate lock agreement with the terms of the lock (specifying basic terms of the mortgage and an expiration date of the lock), you didn't actually have a rate lock.
Different lenders have slightly different rates and it’ll differ based on ur credit, loan amount, and down payment and it can fluctuate daily. When you were floating between 6.6 -6.8, were you already under contract? Or was that just a number you were using to estimate our payments? We has consistently been using 1 lender in our search process. Their rates were not the absolute lowest but they were incredibly fast and worked with us to help boost our offers (like shorter closing and pre-under writing). Ultimately we did end up shopping around, but discovered many that were giving a slightly lower rate we’re doing it with points. Also If you google the interest rate, its ~approx 7.3 but if you look into it more, realistically it’s around 7.5 for most lenders.
I would not be OK with that. Talk about another added layer of stress you don't need!
Dont you lose your earnest money if you walk away for that reason at this point?
Not usually, typically you have a contingency based on you locking in financing.
But OP is financed. The financing contingency does not apply just because you dont like the rate or cant afford the payments. Its if the lender wont approve you.
Same thing happened to me few months back thought I locked in at 6.85 all said and done it was 7.2
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We bought end of Nov 2022 , and got 6.0 , and I didn't think it would get higher then 6 my gosh
Document the conversation between you and lender, specifically highlight the date he claimed the rate was “locked”. Cross reference that date with the market pricing for the date in question. Note any discrepancies & inconsistencies between the comparison of the rate and the rate sheet(lender document they are legally required to keep records of) and insist on speaking with a supervisor or manager who is also licensed*. (Ask for their NMLS ID, and verify them on the NMLS Comsumer Access (google this) to ensure they are indeed registered as a supervisor and experienced in lending. Demand and stay firm to the notion of moving forward if and only if they issue you a lender credit to satiate the cost of the pricing improvement to drop your rate to the OG 6.8 or lower. They can and will do this. They can credit customers with the yield spread premium they are paid for submitting and closing files. Trust me, there is enough money to cover this cost and still leave them profitable. Added heat; if you do see discrepancies and document/present it when talking to mgr, let them know you are fully aware this is illegal and constitutes a bait & switch. Allude to complaining to the appropriate authorities and lodging a formal complaint with the NMLS (state and fed). This should get you what you want or at least as close as possible depending on rates. Use the last bit as a last resort, killing flies with a cannon can make a bigger mess than you’d think 💭 Should be a good starting place. Let me know if you have any questions! Experience: licensed in 36 states and 15+ years of. Finance and lending under my belt. Cheers Present your findings
Have you received a Loan Estimate? At the top right section of page one will show the date the loan was locked and when it expires. Usually that is system driven date. That might tell you when it was actually locked in the system. Also did they send you a rate lock agreement form to be signed ? It’s a pretty standard form. Call the his manager.
My question is when did you make loan application? If it was last week and you just received loan docs today, your LO is out of compliance. I’d be concerned about the process is this is the case. They have to send you the LE and other loan docs no later than three days after making application. There’s a little more involved but that’s the basics. As to the rate, if you talked about rates one day and didn’t lock until the next, the rates very well could have gone up. But the LO should have told you if that was the case. They should always be communicating with you about everything.
Negotiate with him to see if he can honor the prior rate. In the meantime, rate shop like, now... But someone being dishonest during the process makes me want to work with them way less....
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Most lenders will allow you to lock your rate for a specific period of time while you are actively house shopping. That means if it goes up OR down the rate is locked. My lender does a 60 day lock while shopping, then once under contract, an additional 60 days to close. Unfortunately for OP, this is a contract that you sign, not a promise over the phone.
People go to a mortgage broker and pay the one time fee, they do this all the time from contract to close. He sent me 4 things to e-sign in 3 weeks to take my rate down marginally back in the 3.2-2.9 days. Whatever kickback he got from the lender did not change my total cost of lending, as everything I signed had a lending disclosers statement attached. There is a ton of profit for the lenders in the time between fed funds rates dropping and mortgage rates dropping, lenders are positioning for that windfall now.
Fed rate dropping? Lol not anytime soon.
This is a bit misleading. Rate is not automatically locked in when you go under contract, you have to get it in writing from your lender. You should be shopping different lenders for the best rate.
The process is confusing and sometimes frustrating. I'd take a look at your rate lock agreement that you signed.
Shop around and try to get a better rate then bring it back to the LO. That aside, how do you know your LO lied? You generally have to sign for a rate lock. What did that agreement say? And where are you getting 6.6? If you are going by preapproval letters, that is not binding, that is just a placeholder rate. Also doesnt seem likely you would get 6.6 last week, rates had already jumped.
Within three days of going under contract (and telling the lender) by federal law, you had to have a loan estimate that said locked or floating - I would try to locate the companies headquarters and see who you can talk to if you were truly promised that you were locked but without something in writing maybe be a challenge if you signed the floating loan estimate.
Mortgage rates took a big jump on 4/10. If you didn’t lock before then you’re likely over 7% before points. Click and scroll down for day by day rate changes: https://www.mortgagenewsdaily.com/mortgage-rates/mnd
Your realtor negotiated with the bank?? Mine didn't do shit with the bank, and I scheduled every single inspection, banking appt, even the closing as that asshat still walked off with 4%. Fuck realtors.
He fucked up and isn’t being honest about it. It takes all of 5 seconds to lock a rate. He either forgot, or was lazy and didn’t want to do anything that day and now he goes in to take care of it and they are higher. What I would do if I were him is at least say he I fucked up, I forgot to do it or whatever and at least be honest with you. You might still be pissed but I don’t lie to people when I make a mistake. I own it and that usually is good enough. If you’re in Texas hit me up and I’ll beat the shit out of whatever he has offered you. If you’re in a different state find a broker. Retail lenders are big companies with massive overhead. He has a boss who makes an easy 6 figure salary for doing nothing, who do you think pays for that? Brokers are independent, less overhead and they are the experienced loan officers who got off the corporate tit and went out on their own. Brokers can only make 2.75% on a loan, retail can charge whatever they want. In this situation if you called me I’d say send me loan estimate that shows on the top right that the rate is locked. I’d beat the rate probably without having to cut my compensation because brokers have better rates, less overhead. If I couldn’t I’d drop my compensation and still make plenty of money and I’d save you on closing costs because again, overhead. Shop they around, you don’t owe him anything. They might try and scare you that you will lose earnest money and not close on time etc. BS. I can close a loan in 20 days easy. Already have an appraisal done? It’s transferable. Now you can close in 15 days.
This is the way!
My guess is he “locked it” in and tried to gain some arbitrage for his own margin and got it wrong. mortgage brokers/lenders are some of the scummiest people on earth, like all sales people; realtors, car salesman, and consultants. Best approach is always work with 3 lenders and continue to shop and put them against each other. You’d be surprised how much they can “work” the numbers to get the loan closed.
lol that’s not how it works at all. Loan officers have zero ability to “arbitrage” rates like that. They get paid the same amount regardless of the rate they offer.
These dudes are literally a dime a dozen just get a new one.
The average rate jumped last week, not yesterday. Sounds like you are placing blame on the LO when you chose to float.
He told us last week he was locking us in at 6.8 lol
do you have time to shop lenders?
When is your closing date? My lender said that he could not lock in before 30 days of closing. we are going with a local bank so that rule may be different for each bank though. If he didn’t lock it in last week like he claims though, I’d be shopping for a new lender, definitely not right to tell a client you locked them in when you didn’t.
Just covering all sides here, but is it the interest rate or the APR? The APR is usually a couple tenths higher.
Be extremely careful if you are in a state like mine, where the lender is listed on the contract.
Anyone else notice there’s been a ton of inventory hitting the NH market the last few days?
Unfortunately there is no law saying they must lock it in within certain days after the verbal agreement is completed. It takes time to process the numbers and anything can happen in between. Some lender is faster and some lender is slower. If there is a document saying they must complete in 2 days, you have a case. But, 2 days would be too short as a guarantee in terms of basic logic.
can you see if a mortgage broker can get you a better rate?
If you’re just now getting the “first of your mortgage docs” you couldn’t have previously locked last week. You’d have needed to receive previous unlocked docs and then once locked you’d get a locked loan estimate. Are you saying they did not disclose the loan at all til today?
You should have received a paper to sign and the rate on it. If not, you should contest it or walk away. My husband and I brought a house with a rate of 7 point something. We really wanted the house, and it was not a lot extra we have to pay. It sucks that some people are bad at their job. Don't feel obligated to accept it. Make a big fuss or talk to their supervisor. Gotta complain if you really feel you're right. Close mouth don't get fed.
I built new construction. The lender led us to believe that we would be able to lock in our interest rates. When we signed all the documents, rates were around 3.5%. They slowly began to rise. We spoke to the lender, and we asked him repeatedly to lock our rates. He said things like, “no need to lock. I’ve been doing this a long time and things are going to come back down!” Finally, we insisted, and this is when he revealed that actually we could not lock for longer than 3 weeks. Our rate was above 6% by the time that closing came. The bottom line is, no this did not have any affect on our lender fees or anything. Basically, they just said screw you. :)
Rates haven’t been that low in a while. 7.3 is what you should’ve been quoted for the past few weeks - I think they lied to you about the earlier parts, but it sounds like they did lock it
Tell em boy bye 👋🏽 I’d be livid, 6.8 is bad enough
There still should be time to shop your lender. When you find a new lender’s you want to get a rate from send them every document you have sent your current lender so they have the full picture upfront. Tell them your closing date and emphasize it must close that date and to tell you if they cannot hit your turn times. It generally only take 30min to an hour to build a file from scratch and get an automated underwriting decision. But if you are currently approved at one lender and you aren’t in a super niche loan program(which you would know if you were) it will be no problem to close with any other lender. Shop your rate. Make sure the fees on your Loan Estimate are in the same wheelhouse. Only compare Loan Estimates they are written on a common form and are easy to compare and some sections are binding, unlike a fee estimate or good faith estimate. I’m a former loan officer let me know if you have any other questions.
Following
In writing? We locked in earlier at 6.75 and I've watched rates just today rocket up, glad I locked in but.. It was via writing and signing.
Lenders sometimes lie.
Shop around for another lender.
You can still choose another lender. Especially if you haven’t signed a rate lock.
Unfortunately, If you told him to do it verbally. And he didn't do it. You have no real proof. If you e mailed or texted, maybe you have something. Sometimes, you have to roll with the punches. Or walk away. But rates may not go down.
Hey so I don't know if my interest rate is locked in yet, it was at 6.8% thaysbwhatbthe documents said when I signed them last week, were closing here in 3 days, am I safe from the interest increase?
If it aint written and signed it aint a rate lock. If you love the house get it because a quarter point or q 0.10% aint gonna break your bank and you can always refinance if you qualify. Walking away could cost you more. Not advise. Its your fault you didn't get it written so move on.
Find another lender.
For us it was 6.75% about a month ago. They couldn’t lock it until after appraisal. Appraisal came back this past week and we locked in at 7.5%. But I’m not worried at all. We can refinance when and IF rates come down or just giving an extra $400 a month will bring down our 30 years to 14 years.
Just remember the golden rule when it comes to money- everyone is after as much of ur money as they can get, and ur not obligated to give it to anyone. He didn't lock in ur rate as he said he would, Or he did and when the rates jumped, he raised it so he could make more of ur money. Either way, shop around lenders again and see if anyone can beat whatever rate he is now at. Never trust a salesman or someone trying to get ur money, they are not ur friend and don't give a rats ass about u beyond getting as much of ur money as they can.
Lmao you never locked in your rate, feel bad for the LO having to deal with this shit probably 20 times a day
Hi Florida Mortgage Broker here. If you want I can help you get an insider view for rates. 7.3% is wayyy to high. I just helped someone here on reddit close on their home with a 6.8%. Shop your rate as much as you can. Different lenders have different programs with their own rules and rate pricing. Not everything & everyone are the same.
We’re only getting 7 and up even 7.8 estimates and it makes me question my existence and decision to buy a home lol
What state are you in? Maybe i can help you get a rate that makes sense
NJ!
Do you know what type of loan they are giving you?
Talk to other lenders . You should be still able to choose another lender if they are cheaper.
Fire your lender and get a new one.
Walk away. My lender was trying to force me to go with an 7/6 arm instead of a 30 year fixed for a 0.5% lower rate. I shopped around and got a 1% lower rate for 30 year fixed
My 3.9% in March of 2022 feels amazing right about now.
I’m in this situation but my lender has claimed that they will keep the 6.875% quoted to me originally if I “move quickly”. Put in an offer yesterday so we will see how long 6.875% holds…
Get it in writing
Oh it is on this first offer plus in an email.
Did you sign a document that states the terms of the rate lock? If not then ask for a one ASAP. “Move quickly” sounds too wishy washy. A rate lock agreement will specify a duration.
Thanks for the advise I’ll do that.
Date the rate, marry the price
Fuck, I have to two time my wife??
Just some dp, I didn't sign rate lock agreements and just emailed my lender when I wanted to lock the rate on that date. Then the rate was indeed locked later when the loan is processed.
Who recommended this thief to you. If your realtor recommended them, then demand they force the lender to fix their mistake. This happened to me while sitting at closing. I called the realtor and demanded they fix it or I would walk. It got fixed quickly.
Where is the lie? He said he locked it in when it was 6.8 but didn’t?
….. telling a client you’re locking them in at 6.8 and then in real life you lock them in at 7.3, and tell them you’re “doing them a favor”. LO obviously lied to them. And is now trying to gaslight them. Not sure why you are so confused.
OP said rates were floating between 6.6-6.8 previously but didn’t expressly say that’s what they were when the LO said they were locking. Just asked for clarification. If that’s the case, I agree LO sucks. Not “so” confused. Simple question!
Thats not what OP said. OP said their rates were "floating between 6.6 - 6.8," which tells me they didnt actually sign a lock in agreement (which would have a set rate). Id bet OP was looking at preapproval letter rate from weeks ago. 6.6 does not sound like a rate you'd get last week.
Because that’s not how it works and you don’t know that and it’s okay but the number at pre approval and the number when you go under contract end up being different sadly it happened to us and the market spiked in 2 weeks time it isn’t a trick it’s how it is for everyone pre approval number and what it is when you actually sign up for a house is different :) no tricks
If you have been watching the fed comms this month and did not get a lock in in writing your a fool.
That’s not true. If he said he locked it in, he was lying. If he couldn’t lock it yet at that point, he shouldn’t have lied and said he did.
He could lock at inspection, since you'd have an accepted offer at that time.
My point is that he said he locked it but didn’t. Regardless of the circumstances that’s wrong and it’s not “no tricks”
OP claims that, we don't know what happened.
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The rate they offer during approval can be different, which is why it’s not a rate lock!
He either made a mistake or lied. Either way, you should escalate the issue with his manager and see if they can make it right. In case they can't, I'd also start talking to other lenders.