When we applied for our mortgage we jumped through the hoops all home buyers do. We went through a mortgage broker and met with 3 different people in the office, a new one each time we went in.
After getting together all documentation we went in and signed all of our papers. We were told repeatedly what our payment would be. We were also told we would not need any additional funds at closing.
We gave notice on our apartment and packed. Our appointment for the closing was 4:00. We arrived at the lawyer's office and found out we were waiting for a few last papers to arrive. They finally got there around 4:45.
We were rushed through signing, assured that we had already seen these papers at the broker's office.
Then they asked for $900 that we did not have for final closing costs. We explained we did not have it and that we were told we would not need it.
After a little "shifting" of fees everyone said there was nothing additional needed. We signed the papers, got the keys, and left.
Later that night I was going over our papers and saw our mortgage payments were going to be $55 more than they should be each month. The next morning I called the broker and found out they had quoted the payment on a 45 year mortgage but had actually submitted it as a 30 year mortgage.
I was then informed it was too late, I had already signed the papers. And besides "it is only $55 a month". I had signed the papers and had less than 2 weeks to get out of my apartment. Was there any recourse that late in the game?
===ANSWERS===
Hello P Wilkes;
This experience is exactly why I prefer mortgage bankers rather than mortgage brokers.
Now, since this is a purchase and not a refinance, there is not much you can do.
A refinance has a 3 day right to cancel, but to my knowledge such a thing does not exist with a purchase.
By law, they have to present you with a Good Faith Estimate before closing. It sounds like you may have gotten one early on in the process, but not just before the closing.
Your broker should have gone over all the paper work, any money that would be due and the payment etc.
I'm really sorry you had this experience. It is a little late now. The $55 a month may be a stretch but hopefully you can make it work.
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