My husband and I applied for a mortgage with First South Bank to purchase ourt new home. The upfront costs came to a total of $408. And change. These fees were to include the appraisal, the credit report and the flood certificate.
When we first went to apply we specifically stated in no uncertain terms that we wanted to weigh all our options and wanted a no money down loan. My husband is a retired Sheriff and we also wanted to look into programs that may be available for law enforcement officers. Also we wanted to know about down payment assistance for which we qualify. The person we dealt with did not research anything but FHA loans. He stated this was the only loan we qualified for and there was nothing else available to us. He also stated there was no such thing as downpayment assistance.
Three weeks prior to closing we were told we had to have 3% of the purchase price in cash to bring to closing. We were livid!!! This was supposed to be a no money down loan. All along he kept telling us that we are approved, there were no issues with our loan.
He promised us that we were approved for the mortgage and everything credit wise was all set to go. We had a closing date set for the 29th of August. We had all our belongings packed and ready to be moved. We had the moving truck reserved and all the utilities switched over to the new address along with our mail. Everything was all set to proceed until... Two days before closing the bank said our credit wasn't good enough and they backed out.
The supposed underwriter repeatedly asked for employment pay stubs (which she already had 4 copies of) along with bank statemtns (also she already had this information but wanted the same records sent to her yet again) Then we were supposed to have the 3% in a bank account and in a check ready for clsoing. When we asked the guy (idiot) we were dealing with about that being more than double what we were told to have on hand he couldn't explain clearly what excactly it was they were asking us to show moneywise.
After pulling my hair out, he finally spoke English and stated the money needs to be shown where it was coming from regardless if we were using our paychecks to pay for the downpayment. My comment to him was that the money was either going to be sitting in the bank in our account or it was going to be in the cashier's check submitted to the attorney at closing but it was not going to be in twoplaces at once!!! The MORON!!!
So the money was in the account, the closing date was set, the sellers were coming from out of state and had to get a hotel room for the weekend, all the information the loan people requested had been sent and resent at least 15 times over the 3 months of bs we endured and they decided at the very last possible moment they weren't going to go through with the loan. They told us that we weren't approved and our credit scores were very low!!! Which they were at about 650 for each of us if not more and are currently close to about 700 (we went to a BETTER bank for our loan purchasing needs!)
We were told by another very dependable source that we were never approved for the loan to begin with contrary to what the bank told us in writing!!!
Then to add insult to injury when we told them we wanted our money back for the upfront costs they charged us or they could give us the ORIGINALS of the entire credit report along with our credit scores and the appraisal and the flood certificate which is totally and absolutely useless, they sent us a bill instead for an additional $125.00 stating the cost of the appraisal was over $100.00 more and the credit reports cost over $65.00.
We are going to report them to the NC Banking Commissioner and the District Attorney's Office for fraud
Anyone out there that's wants to join us please do!
They are the reason the country is in the mortgage mess it is in!!
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