We just recently purchased our first home. We were naive to the whole pre-approval process and felt comfortable with the lender from the start. The guy we delt with was close to our age (I will not name names because I do not want to sink that low!) and genuinely seemed to understand our situation. We told him from the beginning that our main concern was the closing costs and that we didn't have a whole lot to work with. He assured us that he would work with us to make sure we paid as little out of pocket expense as possible. We got a great rate and decided on a sellers concession (for those that do not know what that is, it's when you incorporate the closing costs into the price of your mortgage and the Seller pays the closing costs) of $5000. We were told that anything we may have to pay would be miniscule and we would have the figures before we closed on the home.
The night before our closing at 5:30 EST he tells us we are going to need $2000. This came as a shock because originally he had told us it would be more like $400... Kind of a large jump. We managed to scrounge the money and had a cashiers check prepared for the following day. We were not that concerned because we had given a deposit of $2000 when we signed our purchase agreement that we would be getting back so we considered that a wash.
At closing we find out that the $2000 deposit is also going to be needed for closing costs. This meant that we spent a total of $4000 out of our own pocket and combined with the $5000 sellers concession, a total of $9000 in closing costs. We were also told by our lawyer that they had called several times the day before and kept making changes to the hud. We were stunned, but felt like we were backed into a corner and had no other option but to sign because we did not want to go through the home loan process all over again. We did this reluctantly and on the brighter side, are in our home. I wanted to send this so any first time home buyer would NEVER USE AAMES HOME LOAN. I'm sure we'll have other issues with the company but for now that's all I have; will keep you posted!
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