VA Home Loan Refinance Nightmare
by Jack from Haverhill, Massachusetts USA
Jack tells about his VA home loan refinance nightmare that went from mishap to mishap over the course of more than 3 months: Kate, tell your viewers to allow plenty of time for getting a mortgage. My nightmare! First let me say I am not your average customer since I help my friends save money by sending them to one of two companies that have great fees associated with their mortgage rates and points.
Plus I was a loan originator.
Last year, to the day, I closed on a 15 year loan. It didn't close on time but the rate and fees were honored.
This time, wow! VA nightmare! I applied 4/26/2012. Then I locked 05/14/2012. They had all documents sent to them FED EX. Now the wait.
In late July, I was asked to provide them with 5 more items. One was the name of my nearest relative. Wow, you couldn't ask me in May?
Since I am a veteran, they wanted to know my deployment status. Wow, I am 63 years old! I served in Vietnam. My days of active duty are over.
Then I had to get and pay for a termite inspection, even though my condo association monitors the grounds with a system in the ground. I had a termite inspection on my unit that lasted 5 minutes at a cost of $175. This was done 2 days before closing, I thought.
I was told my funding fee was 2.15%. I had to tell them it was 3.3%. I was right. I was giving them an additional 5% of the appraised value to lower my funding fee to 1.5%, only to find out at the last minute it only applied to purchases.
Last but not least, we closed on July 27 or so I thought. We signed papers only to find out that the papers were dated July 27, 2011!
Then we found out that settlement or escrow fees can't be charged if an origination fee is charged.
The mortgage company or attorney closed on July 31. A total of 3 HUDs were done. (Note from Kate: A HUD is a statement itemizing mortgage closing costs.)
After the July 31st closing, I got a call from the title company saying I was short $400. But this mistake was because because my wife wrote $1404.88 IN the block but when she wrote it out long ways, she wrote One thousand four dollars 88 over 100. I sent them a check for $400 and problem solved.
There were a couple of other things that went wrong but I told you enough. The lawyer loved it because he got paid twice.
From start to finish...
- 4/26/2012 to 7/31/2012
- Locked 05/14/2012
- 78 days later closed
P.S. I paid 1/8 point to lock for 45 days. I got a 78 day lock for the same money. By the way, the loan didn't fund until 08/08/2012.
Great company but not so great at VA home loan refinancing.
Have a nice day, Jack
Kate Answers: VA Home Loan Refinance Nightmare
If it weren't so serious, the comedy of errors might be humorous. But there is nothing funny for any mortgage borrower about such unprofessional behavior.
Thank you for sharing your story, a nightmare indeed. It serves as a cautionary tale for anyone who will soon be shopping for a bank.
More information about shopping for a mortgage company and loan originator can be found at How to Compare Mortgage Rates and Loan Originators in Six Steps
. You will also find the link to the Nationwide Mortgage Licensing System Consumer Access
with free information about companies or individuals authorized to conduct mortgage business in a particular state.
Best wishes and thanks for sharing your experience,
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