My loan agent is bullying me!!?

Question

She locked in a rate for my new house 45 days ago and says that the lender is ready to fund the loan today. My house is not completed yet, and I refused to approve the funding until I get a walkthrough of my house. She says that because the rate has expired, I would have to pay for the extension fees. Why should I have to pay for extension fees when it is not my fault the the house is not complete and she was the one that decided to lock in the rate 45 days ago? Can she really charge me for that?

Answer 1

Get another loan agent. They are losing money and trying to sucker people in as fast as they can. In fact, if it's been 45 days, you might be able to get a better deal. maybe your credit score went up a few points or someone else can offer you a lower rate. Tell her to back off or you will walk away. Heck, tell the homebuilder to tell her to back off (if she's their preferred lender) or else you will walk away. Builders definitely don't want that right now.

Answer 2

When getting a loan you are a partner in the loan process. The loan officer should not do anything without your approval. Now about the lock, I am sure that at sometime she indicated that the rate was at a certain level and would you like to lock the rate so you can insure that you will have that rate even if it went up.

So the decision to lock should have been both of yours. Now if the loan officer took it upon herself to lock the loan it is an entirely different story.

Normally the lender will not charge for the lock not being honored. You are penalized by now having to take a higher rate and the rate can not go below your former locked rate if you are within a certain amount of days.

But the lender is normally prepared to have loan docs signed and the loan to fund shortly after the signing of loan docs.

Are the extension fees not your fault because the house is not complete?

What is holding up the walk through and the completion of your home?

It appears as if you and your loan officer has to get on the same page. Sit down with her and have a communications meeting so you both can be on the same page.

You also should find out from your developer why he is behind schedule and when he will get back on schedule and complete the house.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Wait a second. Did you know the rate was locked for 45 days? Did you agree to this? You said "she decided to lock the rate." She decided to do it without even telling you?
If you signed something stating that the rate will be locked for 45 days, it means you agreed. Now after 45 days you want the same rate. Yes, it's not your fault that the house is not ready, but it's not the loan agent's fault as well. She promised to get you a loan with a certain rate locked for 45 days. She did it. What did she do wrong?
If there's absolutely nothing anywhere in writing about this 45 days lock and you never heard of it, then it's another story. But it's hard to believe that a loan agent would lock the rate without even telling you.
As for the house not being complete, I'm sure there's something in the contract about the completion date being "approximate." If it's a new construction, they give you completion date, but ALWAYS specify that this date can change.

Answer 4

You can only lock in a rate for a certain period of time - after that, you'd either pay extension fees, or take a chance on what the rate will be when you're ready to close.

Holding off until the house is finished makes sense.

Answer 5

Theres probably some fine print that legally lets her do it, not sure you'll have to check the laws and what you signed, but it does sound pretty screwy to me.

Answer 6

I am not sure but I hope that you dont have to pay that ....GL