Question: I am sorry for the previous post; the lines were too long and were truncated. Thanks for the responses so far.
I am in the process of refinancing my 1st and 2nd mortgages. The loan broker I am dealing with was referred by my credit union. I have always had good experience with the C.U.; that good feeling spilled over to this loan broker when I started dealing with them. At first the good faith estimate was at about $5100 for total closing cost. In the process, I paid $325 for credit check and appraisal. Now, we are very closed to the end; this broker sends me a final estimate for closing. Lo and behold, so many new charges appears and so many previous estimates are raised with some item up to 100%. The total estimated closing cost is now at $6500 excluding the fees I already paid. I am really confused now and don’t know what to do.
My question is that is it usual for a broker to raise closing cost between the “good faith” and the final up to 33%? The credit union is American Electronic Association and the broker is Pacific Shoreline.
Any inputs about my question and any feedback about this loan broker? I’m almost certain that there are many AEACU member out there and some might have dealt with this broker before. Many thanks for your inputs.
Answer: Perhaps you should offer hime a tip?
The thing to do is go to several other companies with the estimates. Ask them if the charges are reasonable and tell them that you’ll do business with them if they beat them. Remember – these people are in business selling a product. Often they’ll negotiate with you (especially if they know they’ve got competition) because once you close they’ve got you for life.
Keep in mind that you may have to pay a bit more with a company that offers professional loan servicing. This money you want to pay. Another approach in future cases is to get a firm price quote in writing before committing to refinancing. The standard boilerplate contracts contain many clauses in the fine print favorable to the lender. If the lender can jack up costs, there is a fair chance they will. Because it is a lender’s market, you might have trouble finding a lender than will give you a custom contract.
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