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Laoch902

1st Time Home Buyer (VA)

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We are purchasing our first home and I am wondering if we need an attorney or something. What has made me nervous is that that the LO asked for our debit card, expiration date, AND the security code on back to order the appraisal. When we questioned him about it, he said he would pay it out of his own pocket.

The second issue was that we had obtained a pre-approval letter at 3.875% interest but when we signed the contract from him, the first page stated the the rate was "Not Locked". So when we asked him about that he said he "just locked it on the computer." When I asked him if he could email or mail us the interest lock letter he stated the telephone call is being recorded and that was good enough. Other than that, I think all has gone well but we have absolutely no idea what we are doing. We're in Texas and company is VA United.

Also, in the Residential Loan Application we signed, there was the sheet that said the 3.875% (same day we asked him the questions) was NOT locked. We (husband and I) simply marked out "NOT" and initialed it. Dumb, huh? This is the final paperwork that goes to the underwriters if I understand it correctly.

Any info is GREATLY appreciated!

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If i recall correctly, I think I either provided a card number or they took the appraisal cost out of my Earnest money deposit.  I believe that is normal operating procedure.

Locking in the rate seems a bit odd. I'm not sure why he would be messing around with no locking it in when you asked.  I don't think there is anything wrong with what you did in marking out the "not" and initialing it.  Just keep in mind that when you get the final approval back, if the locked rate is higher than your 3.875% you still have the right to cancel the transaction at that point.  You can back out of the deal at any point up to the closing signing if something seems wrong or shady to you.  Don't feel bad about doing that.  Sometimes just the threat (and seriously meaning it) of walking can get their attention to quickly fix something you don't like.

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Sounds like you're dealing with a broker... I have no idea why the LO does not want to lock. My guess is that he's hoping rates go down (I doubt), or he's hoping to get a bigger YSP or pile on junk fees (and get a higher commission).

 

Since you are doing a VA loan, I would recommend going through Navy FCU (not endorsing) since many vets I know are very pleased with how  their loans were handled. I also know a few who have used USAA (not endorsing) and have been pleased as well.  Both have extensive experience with VA lending - they do more VA loans than conventional - and more than the big banks do on an annual basis.

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