Mortgage Broker Changed Terms

[TiffaneeOBrien]

Mortgage Broker Changed Terms-Need Advice Please!!

What is the name of your state? CT
I am scheduled to close on my home purchase on 4/15 and have a mortgage contingency date of 3/25. My mortgage broker told me I was 100% approved and gave me the terms - locked in until 4/15/05. He called this morning and told me there was a 3yr. pre-pay penalty instead of the 1yr. we had discussed and I had signed. He told me he spoke to another bank and they would approve a note with 2yr. pre-pay penalty, but at a better interest rate than the first one (the one "no longer available"). He says I am "definitely" approved and the bank just needs to physically input the loan app. into their system. Can the bank (and really the broker) change the terms after I was told the loan carried a 1yr. pre-pay penalty and I was "locked in" until 4/15? Should I be worried about the mortgage contingency date when the broker says I am "guaranteed" approval? I love this house and I don't want to lose it or my $5000 deposit. Any help would be hugely appreciated!

Thanks!
TO'Brien

 

[seniorjudge]

What is the name of your state? CT
I am scheduled to close on my home purchase on 4/15 and have a mortgage contingency date of 3/25. My mortgage broker told me I was 100% approved and gave me the terms - locked in until 4/15/05. He called this morning and told me there was a 3yr. pre-pay penalty instead of the 1yr. we had discussed and I had signed. He told me he spoke to another bank and they would approve a note with 2yr. pre-pay penalty, but at a better interest rate than the first one (the one "no longer available"). He says I am "definitely" approved and the bank just needs to physically input the loan app. into their system. Can the bank (and really the broker) change the terms after I was told the loan carried a 1yr. pre-pay penalty and I was "locked in" until 4/15? Should I be worried about the mortgage contingency date when the broker says I am "guaranteed" approval? I love this house and I don't want to lose it or my $5000 deposit. Any help would be hugely appreciated!

Thanks!
TO'Brien

I love this house and I don't want to lose it or my $5000 deposit

What did your written sales contract say about the terms of the financing you were supposed to get? (I am assuming you made the contract contingent upon financing with full terms spelled out.)

 

[TiffaneeOBrien]

my binder states the amounts of a first and second mortgage and that payments are to be equal and amortized over 30 years. This was signed by seller and buyer - not by the mortgage broker. The mortgage broker was participating in the meeting where the binder was signed via conference call and it was he who assigned the mortgage contingency date stating everything was complete. I have loan applications signed by the broker and I have a "truth-in-lending disclosure" from the bank.

 

[seniorjudge]

my binder states the amounts of a first and second mortgage and that payments are to be equal and amortized over 30 years. This was signed by seller and buyer - not by the mortgage broker. The mortgage broker was participating in the meeting where the binder was signed via conference call and it was he who assigned the mortgage contingency date stating everything was complete. I have loan applications signed by the broker and I have a "truth-in-lending disclosure" from the bank.

By "binder" do you mean the real estate sales contract?

That is what I need to know about:

What did your written sales contract say about the terms of the financing you were supposed to get? (I am assuming you made the contract contingent upon financing with full terms spelled out.)

 

[Fat Tony]

Anything can (and normally will) change up to the actual closing. You will often be suprised by at least one or two things at the closing table. This is how most mortgage brokers work. Instead of telling you in advance of changes to warn you and prepare you, they dont tell you at all, and just hope that you are so anxious to close that you overlook them. Go to another mortgage broker, and tell him exactly what you are looking for, what rate, what prepay penalty, what fees you will pay, etc. Believe me, its a cutthroat business, you'll find someone to take it.