@Anonymous wrote:
We recently refinanced our house. As part of the deal we were supposed to get some cash out as well as a lender credit to offset our closing costs in exchange for a higher interest rate. We had been working with two lenders throughout the process to compare. On the Loan Estimates "lender A" listed the lender credit clearly, however "lender B" said it wouldn't show up until the Closing Disclosure. The terms for each lender were roughly the same but we liked the personality of lender B more and we went chose them. When we received the Closing Disclosure from the lender the lender credit was listed on there as stated and so we signed off on it. Now on Friday we just signed all of our final paperwork (Closing Documents). Since it is a refinance we had 3 days to rescind the offer which was up at midnight last night. But we got a call last night from the lender saying he miscalculated the closing costs and that our lender credit exceeded the closing costs and now everything would have to be redone.
I thought all that paperwork we signed was a final contract? Are they allowed to tell us we have to redo everything now because of an error on their part? We are in California and we are doing an FHA loan. My instinct is to contact my attorney but thought I would check here first. Thanks in advance for any insight.
^^^That is very strange. The closing disclosure is there for you to know exactly what you are paying for with your refi (or purchase) loan. It is now mandatory to have the closing disclosure at least 3 days in advance of your closing so you know exactly what you are getting with the terms of your loan. The fact that he is coming to you 3 days after you received the closing disclosure to tell you there is a major change is a red flag to me. Find out what this major change is and if it is not acceptable, cancel your loan. Cancel it exactly the way you are instructed to by the lender. It is outrageous that this lender would change your terms this late in the process IMO.
