I became acquainted with a pleasant woman during jury duty in March. She was a mortgage broker and I was looking for a house. I filled out an application, etc. A few months went by and I could not locate a house. It wasn't until June until I found one. Everything was going fairly well it seemed. BUT, I could not a firm quote on my rate (I had a questionable credit score)- which concerned me. I also had not received ANY paperwork ONE WEEK before the closing - which made me nervous.
On June 19, with me extremely nervous - she finally faxed me a good faith lending statement - showing a higher interest rate AND only a portion of the mortgage amount. It also showed a 1% COMMITTMENT FEE which was never discussed with me prior. The fee's appeared resonable though and I specifically asked her what the committment fee was... She told me that was basically the fee's (hers included). I agreed reluctantly and accepted her assurance that no other fees would be charged.
To make a long story short... The morning (June 25) of the closing I found out a few more interesting items... 1-There were additional fee's $1000 2- The mortgage had been split into two pieces - and the FEES were charged twice (I tried somewhat succesfully to reduce them).
I reduced some of the fee's and showed up for the closing— of course the company and lender ACCREDITED HOME LENDING in San Diego HAD to close this day.: O That scared me.
MORE SURPRISES AT THE CLOSING... The second part of the mortage was at a higher rate OVER 11%! IT was a 15 year mortgage which meant higher payments!!! And the other kicker was there was a 3 year prepayment penalty on both mortgages. I was shocked, unhappy— but of course the thought of beginning over when youre practically moved out is excatly the position these companies want you to be in... So, here I am. I cannot say too much bad about ACCREDITED yet! But I suspect these are common practices...
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