I am trying to get a home equity loan. After seeing that they have good interest rate on the GFE and fees are reasonable, I agree to go with this company. This company asked for $500 non-refundable commitment fee for applying for a loan up front, along with all the other disclosure paperworks, which I agreed.
After all that have been submitted for application, then after appraisal done, after about 4 weeks from initial agree for the loan, they called and said that now I have to get a much higher interest rate as the rate has been changed since then.
I asked why they did not lock the interest rate at the time of loan commitment, they simply said that there is no commitment on their part to lock the rate until the appraisal is done. What a ripoff! They know that I am stuck with $500, and they can say whatever they want.
This company is cheating their customers using low interest GFE, and asked for non-refundable commitment fee to keep their customers, then using tactics to delay the process, and then hike to a higher rate afterwards.
Comsumers beware...
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