All Forum Posts by: Patrick Orah

@Alan Lacey thanks for your reply. I am just now seeing that the loan was not locked, though I requested it to be. I think there was an error on their part by not applying my request or there was a miscommunication on my part.

@Raymond J. Rodrigues thanks for your reply. I won’t call my lender dishonest but he was not transparent with me. Since this post I am just now noticing that the rate was never locked. I requested my rate to be locked. When I spoke to one of his team members I remember them confirming my rate and stating that it was locked. All of a sudden the terms are totally different than what I though it was.

@Joe Splitrock thanks for your reply. I was not aware that the rate could be changed after the rate was locked. If we are within the timeframe of the initial closing date, what is the point of locking the rate if it can still go up?

I am in the process of refinancing my loan and as most have experienced it is taken a very long time to close. I am towards the end of closing after what seems like forever working with my lender and when they sent me the closing disclosure I noticed that my interest rate went from 3.125% to 3.375% and $3k in financing fees to buy the rate down to 3.375%. The issue that I have is that I locked my rate at 3.125% and now the terms have changed. I suspected that the lender or loan officer made a mistake and did not lock my rate and is now giving me all kinds of excuses, one being that the appraisal came back $30k less than expected which changed the terms of the rate. Is that possible? Can my rate change to a higher rate after I have locked in at a specific rate?

Looking for a good experienced handyman familiar with the Baltimore city and county market.

Thanks in advance.

@James Ma it was a pre-approval letter needed for proof of financing. My mistake was trying to go through a financial institution that already holds one of my mortgages. I believe the guy was either inexperienced or just bad at his job or both. I have since moved on and was referred to a lender that took over and in one week I have my rate locked a loan ready for closing without having to move my close date. Though the deal is not finalized I feel grateful to be able to salvage the deal and I plan to learn from this experience and make sure I interview lenders before even having a potential property in sight.

@Eric Johnson yes I am moving on and trying to salvage the deal by adding my wife on the loan.

@David Kelly thanks for the offer. I am in the process of trying to get new financing in order and possibly adding my wife to ensure that the debt to income ratio is not an issue. I wanted to do it without my wife so she can buy property in her own name later on but at this point I have no choice. After this experience I am really interested what it takes to get financing approved, especially for small residential loans. In this case I have the money, the credit, the collateral and I have a business that I pay myself as an employee. The issue appears to be that I do mot pay myself enough.

@David Kelly the lender had all of my information up front. I have a 800+ credit score and no debts with the exception of 2 other properties I bought in the past as residential properties. I make good money and the only recent change is that I have a business since 2016 that just started pulling in decent revenue in 2020 and I pay myself a modest wage (less than previous employment). Again all this information the lender knew when he pre-approved me. The lender quoted and tried to get me to commit to 3.5% interest a week ago and when I asked to see if the rate can be reduced he started acting strange. A week later he tells me that my debt to income ratio is to high and that they can’t do the loan. All after ratifying the contract and getting an inspection done.

@Andrew Postell thank you for your reply and kind words. I believe I have a contingency on financing/appraisal so I hope I am covered. I still want to complete the purchase of this property so I am seeking other financing options while trying to see how to keep the loan alive with the current lender. I have not turned this situation negative yet but I am hoping that there is some legal action if I miss out on this opportunity.