Victorian Posted March 26, 2009 Report Share Posted March 26, 2009 Hey there folks. Im a first time homebuyer, and im having a bit of a hard time! My main question here today is this: my co-signer and I were pre approved for a loan, signed a purchase contract with the seller, on my loan officers request, and then got the inspection done, also as he requested... turns out the house needs lots of work. I already knew that and disclosed to him before the process that the house was a project house, its a 130 year old victorian. he had access to all the home information which was freely listed online. After the inspection, he informed me that he couldnt underwrite the loan due to the repairs needed. Do I have any basis for getting my 400 dollar loan application fee back? I feel that he should have informed me that the inspection was make or break. Link to comment Share on other sites More sharing options...
nascar Posted March 26, 2009 Report Share Posted March 26, 2009 Do I have any basis for getting my 400 dollar loan application fee back?Too late now but, a bit of advice going forward; if someone wants to charge you to fill out an application, you need to take your business elsewhere. Link to comment Share on other sites More sharing options...
ALVA Posted March 26, 2009 Report Share Posted March 26, 2009 Was anything in writing...did you have some kind of pre-approval contract with criteria? Link to comment Share on other sites More sharing options...
jetscarbie Posted March 27, 2009 Report Share Posted March 27, 2009 I would assume that the home inspector was doing his job. It's his job to list all he finds wrong with it. Sure maybe he was told before hand some of the problems...but maybe he found some additional stuff.Sounds to me the house wasn't worth the price they were asking.....and that's why they wouldn't loan on it.My house was listed at a certain price. I paid for the home inspection and some things were found that were concerns. I then negioated for a smaller amount to offset the repairs. Link to comment Share on other sites More sharing options...
looksbothways Posted March 27, 2009 Report Share Posted March 27, 2009 $400 loan application fee?! I would take this as lesson learned and move on to a different lender. It's not standard practice for a reputable lender or mortgage broker to require an application fee.It could be that your lender had you approved for a standard FHA loan and the house didn't meet FHA standards, in which case you might want to try for a 203k loan, or it could be that the house appraised for less than what you're offering in which case you might just have to lower your offering price.You should review your paperwork and see what it says with regards to the application fee. The application fee leads me to believe that this probably isn't the most reputable of lenders and it may very well be that they don't actually get many, if any, loans through underwriting as their primary source of income is the "application fee" they charge every potential buyer. If that's the case, I'm sure you signed something that said they have the right to keep the application fee regardless of whether the loan goes through or not. It's like free money for them with no risk. Link to comment Share on other sites More sharing options...
jetscarbie Posted March 27, 2009 Report Share Posted March 27, 2009 Oh, I didn't see the $400 application fee......I thought it was the fee they paid for the home inspector. Link to comment Share on other sites More sharing options...
morrow Posted March 27, 2009 Report Share Posted March 27, 2009 $400 loan application fee?! I would take this as lesson learned and move on to a different lender. It's not standard practice for a reputable lender or mortgage broker to require an application fee.I couldnt have said it better myself. If a lender/broker/loan officer is going to charge you an upfront application fee, chances are they are going to tell you whatever you want to hear at first, and will likely not work as hard as someone who is paid ONLY after the loan closes. And why should they? They got paid already. There is little motivation to work any harder. I think its shady, unethical and would RUN from any lender asking for fees upfront, no matter how "experienced" they are. If they would have done their due diligence and actually listened to you in the first place, the problem may have been addressed beforehand.Sorry this happened to you, but let this be a lesson for everyone. Link to comment Share on other sites More sharing options...
Recommended Posts