My Loan Because I Think Something Is Goofy?
Q: I applied for and was approved for refinancing through Washington Mutual (a large banking institution) over 3 and half months ago. The loan officer told me up front that it was going to take over the 60 days and that they'd honor the lock because they were so backlogged (I got in on the massive rush). But its 3 and a half months now and I'm getting worried. I call every two weeks and get the same line - its going through, everything is fine, they're sorry for the delay but they're just swamped. The problem I have is that I don't know that I have anything legally binding from them until I actually close. Is his word enough? Should I ask him to send me a letter to say that they will honor my rate (which is an excellent 5.5%)? Should I call somebody else at another branch and ask them to check on my loan because I think something is goofy? They did just make a request from my insurance agent about 3 weeks ago so I know they're at least working on it. This just seems so wacky that I get the feeling something is wrong and I'm going to get hosed because I'm locked in at such a good rate. Anybody else ever had this happen to them? If so, how did it turn out? The only thing I feel good about is that this is an actual lender and not a mortgage broker....... How much weight does their good faith estimate hold? Everything is in writing there except for the part about going over the 60 days - even though this guy is swearing that's still true!
A: just had a refinanced rate go out the window after about two months. The mortgage company I made the deal with kept delaying the closing (three times). Finally, I got a letter from them (Mortgage One Corp., Norwood, Mass.) saying they could not find a lender willing to lend at the rate we'd first agreed on. As I understand it, you have zero legal ground to stand on and no recourse. Someone posted here to my query about the same issue that it's good to specify in writing to the broker that the deal must close within two weeks. The difference between you and the OP is that you worked through a broker, who didn't have a clue as to which lender was going to take your package. The same thing happened to me. My mortgage refi sat for four months before a lender would get it. In retrospect, my problem was the appraiser that the broker used. They valued the house too high and I took that as 'gospel' that that's what the house was worth. The lenders who saw it weren't willing to lend that much, but the broker instead of telling us, simply went shopping for other lenders. The OP is working with a direct lender, so at least he has a prayer of closing.