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Closing Monday...2 Brokers Same lender+different rates? HELP


spiagia
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The are in different states, #1 quotes me 7.2% and in the final hour, indicates 8.95%................#2 quotes me 8.5%, told him the other guy told me 8.25%, he mathces the rate and takes less in broker fees, come to find out they are using same lender....had title company forward everything to both brokers.....all docs to be at title company on Monday....can I have 2 truth in lending statements from 2 different brokers, same lender with different rates???????

How can they do that? Doesnt lender know I am recieving 2 TIL statements?

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To anwer your questions and concerns, but not in the order asked.

If the lender is automated, or if both LO's went to the same Account Exec for the lender, then chances are there would have been questions asked. but probably each LO went to a different office, and so no, the right hand does not know that the left hand is doing anything.

#1 VS #2. This the game that many LO's will play. Quote a low rate and low closing costs, with the hope that wen you finally get to the closing table, you will be forced into taking the "new deal" I think an unethical thing to do, as with a purchase sometimes the deal is going to be dead if you don't take the loan. A word of caution: If you talk with 3 LO's and 2 have about the same price/rate, and the 3rd is lower. You may have a problem at the end. Rates between the lenders is not more than about .25 different, and the higher the rate the better the service-or the more "exceptions allowed". I personally loose deals because the rate I quote is "too high" and the closing costs are "too high". But better to do that, than play the game, and at closing have to say "Oh my gosh" "I am so sorry" etc. I just saw a FL deal, where the LO "forgot" to list the mortgage taxes. So at closing the guy will have to apologize and say "sorry, it will cost another 965 to close". "I just did not know about the two taxes, or forgot to list them-not my fault, but my computer program. etc.

I feel bad for you that you had to go through this additional stress, as the entire process is stressful enough. I am glad that you are getting the job done. It is fortunate that the lender was the same, as very little will have to be changed. Some lenders want the Loan numbers on the Insurance binder, and on a form from the title company, but if this one does not ask for that, there will not have to be any changes.

Charles

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Charles,

I have read abour in here recently and regret that it was too late when I came across all the postings about you and how wonderful your services have been.

Put in a nutshell, my credit is horrific.....however, I did a lease option on a home in FL, put 20k down, value of home went thru the roof and seller was trying to make me default every chance he could get, he wanted the house back....so with 2 years left on the agreement, we went for financing....needless to say, people wouldnt have anything to do with us, or, gave us super high rates, except for one...who promised us the world, however, I continued to work with the broker whose rates seemed more "practical". Needless to say, the "wonderful, promised the world lender, in the end changed their tune, knowing I signed the FAR?BAR and had 30 days to close....hiked the rate, began to charge astronomical fees, etc....the other guy just kept trudging along, nothing changed...."wonder ful broker who promised us the world"....now known as bad guy,,,,has no idea about the other broker, the other broker...dropped his rate when he found out bad guy was closing us on monday to 8.25.....bad guy at 8.95, AND he is missing some doc fees, etc....which the other guy picked up on......the good guy has not lied to us at all thru the process, but my question is, Is it unethical for me to have 2 Truth in lending satements at the closing to choose from, or even illegal for that matter.....obviously I want the lower rate, lower closing costs etc....but neither lender has sent me the truth in lending statement for 24 hour review.....

furthermore, do I "close" when I sign or when lender funds? If I sign Monday, lender will not fund until Frid, I have to close by 31st or I will be in default and loose my house....right to recind is 3 days, is that when "closing " happens, after 3 days expires?

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Gee, I would like to hire the "good one", the people that act like a turtle are my kind of people.

To answer your question, you are in good shape. Closing is Monday. You have Tues/Wed/Thur midnight to change your mind (like that will happen) and the loan funds Friday. Even if there are stupid things happen, the $ will be available on Monday, and you will have one day to spare.

As far as the TIL's etc from two different LO's/Brokers, dont worry about it. One thing to possibly worry about, I have an idea. There are two FL broker contracts that are used. One is open ended. All that you are obligated to pay for is the Appraisal if you did not already. The other one is bad in the way that you are obligated to pay the LO/Broker the Loan Origination Fee, the Processing expense etc.

I would

1) Call and find out the Bad ones bosses name, and their fax number.

2) On Friday I would send a letter saying that the following happened, and really let them have it. Send by Fax and by mail. You can send me your copies of the contract and I will give you my 2C worth on anything further you should do.

Sad thing is that the BAD ONE did nothing illegal. It says Good Faith Estimate: and they can say that it was just an estimate.

Charles

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I signed NOTHING with either broker and "bad guy" is California..good guy, FL...GFE, as I have found out, is nothing better than a piece of toilet paper...lol....another tree died for a useless piece of paper....worst case scenario, I don't sign til Tuesday, can it still fund by 31st ???? if funding is done on Fridays.....

geez, I wish I would have contacted you in the beinning, however, you probably wouldn't have been able to do anything with it anyway....I feel like the lender I am using is worse than going to a "loan shark"....lol, but I have to save my home...at worst, I have $200k in equity.....I can always sell it and move on......however, I have no desire to sell, and will not unless I absolutely have to....

Thanks for all your answers, I feel so much better....what a nervewracking experience, I haven't slep since December.....

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you've gone through a lot of the games that some play in the industry. At least you know what to look out for next time; although on refis it's harder to get you to close when terms change at/near closing... you're in the house already afterall.

I've never dealt with Charles personally but from his postings I can tell he's the kind of person you want to work with who under promises and over delivers... that's the way the industry should be.

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OK, It is sunday, and title guy (really nice guy) called us to let us know broker #1 (bad guy) sent title docs to him Friday night, he then faxes it to us......How in the world did I go from a GFE of 7.2% with 23k cash out to a GFE 8.95% no cash out, all fees paid by lender to close to now I have to pay 10K in closing costs???????????????!!!!!!!!!!!!!!!!!

This can't be possible.....I am beside myself.....what happens if good guy comes back with the same scenario....I have to sign by the 31st or I loose my house......Could it be just an error?

Charles...Please HELP!

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All worked out well, we signed January 24th with the "good guy" 8.25, no cash out of pocket.......caouldn't have wanted it to go any other way....

Charles, thanks for your help, I am fortunate I didn't sign the 529 form.....broker "bad guy" was so pissed we sent it back....he went so far as trying to lock up the funding from the lender, sending nasty emails, blaming the title company......EVEN on the day we were to close, they still had the HUD form wrong, needing $12k to close......still stating it wasn't their mistake......

Should I write a letter to the higher ups and tell them what happened or let it go?

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Thanks for letting us know that it all worked out. Glad I was able to be helpful.

If this was my employee I would want to know, so I would tell both their bosses how things went. Especially the "good guy".

RE: Florida. There are two different "Broker contracts" that are used. Be sure that if you are in Florida that you sign the one that does not obligate you.

Charles

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