I?m signing the closing documents for a refi with rocket mortgage in three days. The broker promised no fee loan( 0 closing cost) but in order to get the rate I?m getting, these fees has to be paid outside of closing. My loan disclosure still shows these fees and I asked when will these fees be corrected and the broker replied it?ll adjust accordingly once loan is closer to closing( her exact reply via email). So far the closing documents still has not reflected that and i had to bring these costs to close. Anyone has their mortgage refied with Rocket mortgage(Quicken Loan) or familiar with these promised lender credit paid outside closing? Will these fees be adjusted with escrow and should I requested it to be on the disclosure. Im thinking she?s pulling a fast one on me.
Closing costs paid outside of closing
- Thread starter teddybear
- Start date
Irvinehomeseeker
Active member
I have not seen lender credit paid outside of closing. The lender credits are noted in the Loan estimate to offset any fees charged by the lender.
sgip
Well-known member
There are two ways forward:
1) There are costs shown at this exact moment, but there is a pending credit that is not yet shown on your CD. There can be zero hour lender credits applied and your CD will be updated perhaps a day or so after closing. I've seen adjusted CD's with credit data sent out 10 -30 days post closing when I was at BofA. It's common to close "as is" with a credit being issued ..... and documented..... many days post close. It's a matter of trust.
2) It's possible that the LO "over promised and under delivered" on closing costs, intending now to refund you some costs out of pocket, post closing. This happens all the time. Sometimes it's the lenders fault way up the food chain. Sometimes it's the borrowers fault for not representing their data correctly. Sometimes it's the LO's fault for missing something. Errors happen all the time. It's up the LO however to take care of it post closing. This too is a matter of trust.
9.9 times out of 10 the LO will make good on things. For that .01 times it doesn't go your way, be sure to archive your emails and texts about this. If it doesn't happen, then there's their side of the story, and your side of the story - but you've got the paperwork to prove your side.
My .02c
SGIP
1) There are costs shown at this exact moment, but there is a pending credit that is not yet shown on your CD. There can be zero hour lender credits applied and your CD will be updated perhaps a day or so after closing. I've seen adjusted CD's with credit data sent out 10 -30 days post closing when I was at BofA. It's common to close "as is" with a credit being issued ..... and documented..... many days post close. It's a matter of trust.
2) It's possible that the LO "over promised and under delivered" on closing costs, intending now to refund you some costs out of pocket, post closing. This happens all the time. Sometimes it's the lenders fault way up the food chain. Sometimes it's the borrowers fault for not representing their data correctly. Sometimes it's the LO's fault for missing something. Errors happen all the time. It's up the LO however to take care of it post closing. This too is a matter of trust.
9.9 times out of 10 the LO will make good on things. For that .01 times it doesn't go your way, be sure to archive your emails and texts about this. If it doesn't happen, then there's their side of the story, and your side of the story - but you've got the paperwork to prove your side.
My .02c
SGIP
Thanks SGIP, I do have her email regarding no closing cost the very first day I received the loan estimate. I left her a message and email today. I consider canceling the loan signing tomorrow if she doesn?t reply to me by the end of today. Not sure what to do now after seeing your reply. I don?t mind restarting another loan application with another LO or another lender as the rate has gone down but rather not because I?m self employed. It took over two months for this one.
sgip
Well-known member
Rarely is the grass any greener on the other side of the fence. Wait a bit before making any change. It's December, it's month end/year end and lenders are in a terrible bind right now with too much volume and not enough time to process.
Is that fair to you, the customer? Absolutely not. It's a travesty. Is walking away going to solve it? Meh... not really. You've got about 3-4 days before pulling the rip cord and bailing out if you cannot close by year end. Wait those 3-4 days. If you don't get what's needed then January 1 restart elsewhere.
My .02c
Is that fair to you, the customer? Absolutely not. It's a travesty. Is walking away going to solve it? Meh... not really. You've got about 3-4 days before pulling the rip cord and bailing out if you cannot close by year end. Wait those 3-4 days. If you don't get what's needed then January 1 restart elsewhere.
My .02c
My dilemma as an MLO is that the submission team will only generate Loan Estimates with overestimations in order to avoid restitution. So in my situation, I am hesitant to put any lender credit on the LE or CD because anything that is presented there, I will have to credit. Let's say the LE says fees are $5000 so I match my lender credit at $5000 but it ends up being only $3000. I am still on the hook to give you $5000 credit.
I promise the borrower that the credit will offset any of the fees. I also ask escrow to provide an estimated settlement statement showing my lender credit to match fees.
I promise the borrower that the credit will offset any of the fees. I also ask escrow to provide an estimated settlement statement showing my lender credit to match fees.