What is going on

benoch · Joined: 29 Apr 2005 Posts: 2 Location: virginia

Hi all this is my first post.

I applied on lending tree a few months back and knew I would be sub prime just because some past issues. I recieved several responses and chose one and went with that broker. I will keep names withdrawns for now. I sent some information over and the found a lender and issued me with a preapproved letter. now the day before closing they said that lender had a new condition and so they sent it to a new lender whe I questioned with concern they stated that the original was still willing to do the loan but wanted another 48 hours to print docs. My mortgage broker said she wants to go with this other company and insist on waiting to here from them before moving foward to close. The whole time she is saying not to worry because we can still go with this other company. What is going on?

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

It sounds like either the broker didn't do their job right and didn't get paperwork in when they were supposed to, or they received notification from their lender that they made an 'oops' and need something further.

That, or of course they could just be trying to make more money out of it.

Lending tree wasn't a great way to go, your credit probably will see more hits than a porno website and that will affect your score over the long term.

48 hours to draw up docs seems a bit odd to me. The fact that your broker is insisting you do anything is something I wouldn't go for personally. A broker is someone that should have options and be able to provide those options to you for *you* to make the choice, not the other way around. It simply allows them to say 'hrmm, which way can i get paid the best...'

j · Joined: 26 Apr 2005 Posts: 18

This happened to me to two years ago. I applied to Lending Tree, and got three companies, chose one, then got a pre-approval, picked out a house and was ready to close and then the broker said he had not gotten my stuff back from the Underwriter, and three weeks later, still had not. I had paid him $700, and he refunded about half, saying the rest was for his work on my file, and sending it to underwriting. Lost the house.

The Big Easy · Joined: 20 Jan 2005 Posts: 30

As posted above, lending tree is the "worst" thing a person can do when applying for a mortgage. Your scores are going down faster than the Titanic every time you do this. You must interview brokers either on the phone or in person, make certain you are comfortable, and then pick one and let them work for you. I suggest you find a broker with "experience" and lots of it. Experience is the key. I always tell people "I'm new in the business, did my first loan in 1962. I specialize in finding programs for the credit challenged and the self employed." Please Note: This is not an ad nor am I looking for business here on the forum.

benoch · Joined: 29 Apr 2005 Posts: 2 Location: virginia

so would I be ok if I told my broker monday to go with the first company and close now versus waiting and that if she does not I will change brokers? I have only paid $99 so far. So I would not lose alot of money.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

I would find out what the reason was that you couldn't go with the first company (or what the delay is) and if it was just an error, close with them. Error's happen, it's unfortunate but true. If it seems like you're getting jerked around then obviously you know what to do.

Of course, it all depends on who the companies are. If you're looking at an Argent or Finance America I'd run the other direction and go with the other company heh.

chow · Posted: Mon May 02, 2005 9:49 pm Post subject:

okay. Let me bring this idea to the table, and Haplo....(since you be a retail LO-exit stage right...and read only grit your teeth)

Okay, relitter tells me she has client who wants to purchase home has alternative credit. Client tells me she has faxed everything LO from retail outlet asks for-to relitter. She can't go FHA because of NO CREDIT.

I know FHA like the back of my 40 something yr old hands. Then client starts getting the run around. Basically, this is a slam dunk deal if the LO knew what they were doing. Heck-I'm taking it over and running with it, Conventional 97% financing. Through Fannie!

Get a conditional commitment letter from the Underwriter, it will have a list of stipulations, but anyone with a Cat's brain can process it after that! Just point blank ask- if they have a committment letter from the UW.

Mac · Joined: 04 Feb 2005 Posts: 276 Location: Knightdale, NC

benoch, if the UW had added only one condition that wasn't a "deal killer" your broker had no business shopping your loan to another lender so one of 2 things has happened here.

One, like you were told before, is the broker has found a lender that will pay them more for your loan or

Two, the broker got the "deal killer" condition from the underwriter and is scrambling about trying to place your loan anywhere possible.

My advice would be to call your broker and ask them point blank what's going on. If they are unable to satisfy your curiousity tell them you are heading down the road to another broker. And do it.

Good luck on the purchase of your home. :)