Am I going to owe first broker? (escrow, credit, fee) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

InTheYear3000 · 05-28-2010, 03:32 PM

I've been working with a broker who has dropped the ball several times and probably has cost me the particular home I'm in contract on, but I want to make a final effort to actually close and today have contacted other brokers to try and make this happen. Endless Problems Broker has sent my file to her favorite lender, where it has passed AUS but "the UW hasn't really looked at the file yet" and won't until they have received more direction from USDA, and only then will it get looked at and then sent on to USDA, so I don't know how many weeks we're looking at.

A broker I talked to today said they never stopped processing files and are aware that funds have been released and at least makes it sound like they aren't sitting around waiting. Depending upon what turnaround times they can offer, I'd like to move forward with them.

I'm tempted to contact Chase as well since I know they are again doing USDA, but I've heard so many horror stories about the big banks and terrible service (which is why I had gone with this local mortgage co. in the first place, but look what it got me

).

I don't see any wording in the endless paperwork I signed with the first mortgage application that I'll owe them something if I don't end up getting a mortgage through them, but what is customary?

2nsian · 05-28-2010, 04:08 PM

My 2 cents to hold you until the experts chime in. You will lose the processing fee and if you locked on a rate, you will be responsible for a rate lock fee. Those are the only 2 I know of. I am not sure if they will ask you to refund the credit pull fee.

InTheYear3000 · 05-28-2010, 04:10 PM

Thanks for your input. I paid for the credit pull up front and I didn't lock a rate yet, so at least those two are covered. Will have to check what the processing fee is.

DMenscha · 05-28-2010, 05:12 PM

Releasing funds is the last step. Usually funding occurs and closing happens the next day. I would ask the escrow officer where you're at as far as closing timing.

2nsian · 05-28-2010, 05:33 PM

Quote:

Originally Posted by InTheYear3000

Thanks for your input. I paid for the credit pull up front and I didn't lock a rate yet, so at least those two are covered. Will have to check what the processing fee is.

By processing fee I meant Application fee which should be minimal. Around $75.00 or so

InTheYear3000 · 05-28-2010, 05:43 PM

Quote:

Originally Posted by DMenscha

Releasing funds is the last step. Usually funding occurs and closing happens the next day. I would ask the escrow officer where you're at as far as closing timing.

We're still a month away at best, according to her.

SmartMoney · 05-28-2010, 08:48 PM

Underwriting with our local USDA office is taking 3+ weeks. It doesn't matter who we lock with, the backlog is there. The other issue that I am not sure of is how long files have been sitting still or if they have been pushing them though.......If they have continued working thru the outage, there may be hope they got caught up.

Look for the tax credits to go to the front of the line.