Should I request a new Loan Estimate if does not match what we...

[Charley F.]

Greetings:

I am in the process of refinancing my home to take advantage of the lower percentages and reduce the length to 15 years. After research and consideration we decided to go with our bank (BofA). During my conversation with loan officer we agree to certain perks giving by the bank thanks to my tier as a customer, and some on negotiation. To be specific, we were waved the appraisal fee, no points, lowered percentage rate (to match a competitor bank) and half the cost of lenders fee.

In the first Loan Estimate everything was incorrect. We requested a second Loan Estimate and everything remained the same except for the percentage rate. We requested a new estimate and only the percentage rate was corrected, the rest remained the same. On my third request the subject was ignore even while still communicating with him and his team on related subjects. On the fourth request loan officer insists that these are only estimates and at the day of the closing, they will be corrected.

First, I kind of don't like to work this way where in an important date is when you get to see corrected documents. Either it would not be in your favor or it would delay the process and everything that might comes from it. Secondly, we are not talking about figures that can't possibly be accurate such as taxes, insurance, etc., these items have fixed cost (some was shown on their site) that can be either be removed or credited for the Loan Estimate.

I don't want to be too naive here and I know that there are many bureaucracies and automated steps that could make a simple adjustment a big hassle. But then again, I don't want a surprise.

Another concern is, in the event the loan does indeed comes still wrong during the closing, am I responsible for any fee if I decline or walk out from the closing?

What would you do in a similar situation?

Looking forward to your comments.

[Chris Mason]

Big picture, ask any Realtor, BofA is not known for operational competence. 

Smaller picture, that big bank LO has 50 more people lined up outside her or his office asking to refinance, all of whom feel (falsely) that they will get a better deal because "I've been a customer for 15 years." That LO has zero incentive to work with Mr. "I need five loan estimates before starting the process," they've moved on from you. This isn't BofA specific, this is in general how credit unions and big banks often are, more so in times like these. You hear and read enough stories substantially similar to yours, and an undeniable pattern emerges. 

I'm not saying you or anything you said was wrong. Where you are coming from totally makes sense. Hopefully this just sheds some light on where that big bank LO is coming from. When buying or selling anything (real estate, mortgage, pair of shoes, it does not matter), it is worth considering where the other party is coming from. When it comes to mortgage refinances, it's a seller's market right now. 2018 when rates had just hit 7 year highs? Buyer's market. Think of the terms "buyer's market" and "seller's market" identically to when you are thinking about the underlying real estate itself -- does the home have 40 offers all over asking (seller's market), or just 3 offers and all 3 are lowball (buyer's market)? More like the former than the latter. With the big bank LO (your metaphorical "home seller"), what you are doing is basically asking your seller, in a seller's market, to fix a bunch of little nitpicky inspection items ("new faucet in kitchen sink that matches the oven"), when the seller knows they had 27 other offers, 7 of which were higher than yours.