Do I need an attorney - the broker had "bad news"?

[PWS62]

What is the name of your state? Illinois

I signed all papers 30 days ago and locked in at a variable rate. I also gave them a $200 check for the appraisal. They ran credit reports for both my wife and me, and said that all was OK before we signed. They also promised closing within 10 days - and the paperwork said that I wouldn't need to pay until August 1st.

Today the broker called with "bad news and good news." They said that the lender ran a credit report today and the score dropped - and that they won't honor the agreed-upon rate. But, good news! they'll get me in at a higher rate.

Don't they have to honor what I signed? Wasn't the initial credit check enough - and what about the 10 days?

Shold I hire an attorney?

 

[HomeGuru]

What is the name of your state? Illinois

I signed all papers 30 days ago and locked in at a variable rate. I also gave them a $200 check for the appraisal. They ran credit reports for both my wife and me, and said that all was OK before we signed. They also promised closing within 10 days - and the paperwork said that I wouldn't need to pay until August 1st.

Today the broker called with "bad news and good news." They said that the lender ran a credit report today and the score dropped - and that they won't honor the agreed-upon rate. But, good news! they'll get me in at a higher rate.

Don't they have to honor what I signed? Wasn't the initial credit check enough - and what about the 10 days?

Shold I hire an attorney?

**A: who is "them" and "they", your mortgage broker? And exactly what documents did you sign. Was one of them titled a loan commitment?

 

[MortgageGuru]

Need more information

I smell something fishy here. Credit reports are good for 90 days for the purposes of closing a loan. However, if the broker did any type of credit updates such as getting old, negative accounts removed and had the scores updated as well then it is possible that the scores went down after the negative account was removed. Another possibility is that he did not lock the rate for you. Sub-prime rates have had a lot of changes recently. Or it is possible that he did not quote it properly to begin with. That happens frequently with novice loan officers. If he is a broker then there should be a line on your original Good Faith Estimate that will disclose the yield spread premium has a percentage range (0.00% - 5.5% or something similar). If his company has a lenders license then it won't be there at all. Did he say what lender he was using? What were the differences in the rates? pre-payment penalties?

 

[cathey1963]

This has happened to me NM

I as a broker and over the past year I have had some credit problems of my own and had some clients with the same issue. Credit Bureaus up date there information daily. I had a client who was just fine and the lender pulled another report right before closing to see if anything had changed and boy did it. A huge Public Record. Well we got it taken care of by payment agraingments but some lenders wont even concider you than, and the lenders beleive this can become a cloud on the title,and the loan will be turned down. With my own credit my score differerd beleive it or not from one lender or broker to another and I did a soft pull on the internet and results were even diffrent then. So that why everyone pulls there own credit. If you were loaning someone 100,000.00 would you not do everything in your power to safe guard it? Thats what the lenders are doing and We Brokers have no control over what the client does with there credit. Heck they can be getting two loans or a bank loan at the same time and or just got one and it could through off the Debt to income. Hope this gives my prospective on it.

 

[CO Home Buyer]

I am also a Broker and I agree, with sub-prime loans, credit is only good for 30 days and we will pull credit before closing to insure the borrower has not increased their debt to income or that there has not been any judgments palced on their record.

 

[HomeGuru]

And the lender has a right to pull credit even a day before funding.
Where is the writer?

 

[BelizeBreeze]

This thread is exactly why I pay cash for everything.

Including the boat.