Sales agent and loan officer from hell

[creditisbetter2]

I am not sure what kind of response I am looking for, maybe to vent. The sales lady lies so much. We were told they would install ceiling fans for us as long as we purchased them and guess what? That's not the case now. The doosey is the LO. They wanted us to bring alot of money to closing even though I said I did not want to pay any closing costs. They also wanted us to give a cc number for appraisal and our loan paperwork had never been submitted to underwriting. It wasn't until we said we want to go with another lender did they say they would "waive" some closing costs. So now all we have to bring is our deposit, everything else they covered. The house is not finished and loan hasn't been processed but somehow we are supposed to close in a month. This is a very frustrating process especially when dealing with some unscrupulous people. Has anyone else ever had to deal with companies like this?

[BrianB_The_Loan_Professor]

Coming from the other side I will say it is equally frustrating when someone comes along and has unrealistic expectations. I assume this is a builders lender and it could be different as they tend to offer more than a bank or broker would as they work for THE Builder and get paid by them as well.

It is in no way unrealistic to be asked to pay for an appraisal upfront - If someone told me they didnt want to pay for an appraisal it would basically tell me they werent serious about buying a home. There are hard costs involved and people that physically work and put out money to do things for you in this process they deserve to be paid when that work is complete - if you change your mind, or do not qualify in the end the appraiser is out their fee or the LO has to pay it out of their pocket - Now as far as the lying that should never be tolerated - I would be ticked if someone told me they would do something and they didnt follow through - again assume it is a realtor for the builder and again they work for THE Builder - meaning their job is to sell homes and she probably promised something she wasnt authorized to........

Hang in there it is a stress ful process - also keep in mind if you are NOT paying the costs now you almost always will later - either with a higher rate or a higher loan amount since the seller would have to pay - 

This all should have been clearly discussed at the time you entered into the contract

Take Care

Brian

[creditisbetter2]

Thank you for your response. Yes it was the builders lender. We didn't and don't mind paying the appraisal fee, I think where we began to get skeptical is when they just called and asked for it to be paid and we hadn't heard anything from them with regards to our loan. We turned our paperwork in September 11th and we did not hear anything until September 29th. During that time frame, the sales agent at the sales office said oh you guys are already approved yet we had never received a call from lender. She said she had been directly talking with the lender. So that was a lie because our paperwork hadnt been submitted to underwriting. It wasn't until this week did we hear from the lender and at this time they told us they would submit our paperwork to underwriting.

It seems like a lot of miscommunication between us and them and like you said it's very overwhelming. The sooner we can get past this point the better I will feel. I am just going to focus my energy on packing and let it happen organically

[Jazzzy]

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@BrianB_The_Loan_Professor wrote:

Coming from the other side I will say it is equally frustrating when someone comes along and has unrealistic expectations. I assume this is a builders lender and it could be different as they tend to offer more than a bank or broker would as they work for THE Builder and get paid by them as well.

It is in no way unrealistic to be asked to pay for an appraisal upfront - If someone told me they didnt want to pay for an appraisal it would basically tell me they werent serious about buying a home. There are hard costs involved and people that physically work and put out money to do things for you in this process they deserve to be paid when that work is complete - if you change your mind, or do not qualify in the end the appraiser is out their fee or the LO has to pay it out of their pocket -

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From an appraiser's point of view, and over 20 yrs in the appraisal business, I will add that in our experience the appriaser is not out the fee. The appraisal contract is between the lender (not the buyer) and the appraiser, so the lender owes the fee.

We've had only one instance in 20 years where the bank decided they didn't want to pay. We are in the midwest. The bank was in Florida. A small claims action against the bank and against the loan officer personally brought payment the minute the small claims action landed on their desks. The bank might TRY to not pay, but they are obligated to pay.

[Anonymous]

I agree with what everyone else is telling you. First and foremost, you're buying a house... there are going to be fees and you better be ready to pay them. We went under contract on September 19, 2011. It is not uncommon to submit all of the paperwork to your mortgage company and not hear back from them for awhile. Also, it is possible to be approved without your file going into underwriting. The first mistake you made is to get started in the process without having a pre-approval letter. Getting your pre-approval letter gives a piece of mind to yourself and the person you're buying the house from. The second problem is that people assume because a) you're buying from a builder or b) the house has been for sale for an extended period of time that the seller is willing to pay your fees and take a big dump in their asking price. The fact of the matter is that isn't true. My previous house that I was under contract for was for sale for nearly a year and the deal was less than a week away from closing when it fell through because the seller would not drop the sale price by $4,000 to match the appraised value. He was standing to make $40,000 in profit but he wasn't about to lose $4,000 of it.

The appraiser will never be out any money and you really don't have a deal until the appraisal is done. We've been sitting ducks for the last week waiting for the appraiser to go do her job and what is frustrating about it is that, after she completes it we're done.

[creditisbetter2]

Thank you mahiven for your insight. We had a Pre approval from a lender I was initially going to go with but once we saw this house, we wanted the closing cost incentives that came along with it. We were able to negotiate with them for them to pay all closing costs except $700 over our down payment. I'm ok with that. I absolutely hate the waiting but it is what it is. I hope it doesn't seem as if I am complaining about a appraisal fee because I'm not, that's not the issue. We are new to the home buying process and I am very detailed oriented so I assume every other organization is that way and this process has certainly been a wake up call for sure. Overall we are moving forward with everything and I suppose we will know what the verdict is in two weeks, the appraisal should be done by then.