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Wed Apr 30, 2014, 08:56 AM

So, are they trying to screw me(real estate)

I am in the process of buying a house. The closing is supposed to be May 12. I can't meet that deadline because the VA requires a paint job on the exterior and the weather in Montana won't cooperate. I told Quicken that it would hopefully be June 1 before it could be painted. THEY said they might have to charge me more but they won't tell me why or how much. They are being sneaky I feel. Or not being totally honest trying to squeeze a few more bucks out of me. Bankers are on the list of people I don't trust also. And they know I know nothing about buying a house. I thought the VA would protect me, but I don't know that either. Can they charge me more money. Could this screw me out of buying the house because I only got so much money and I totally refuse to over extend or live beyond my income(fixed). the oil boom out here is trying like hell to create another housing bubble.

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Reply So, are they trying to screw me(real estate) (Original post)
sorefeet Apr 2014 OP
ananda Apr 2014 #1
pipoman Apr 2014 #2
Godhumor Apr 2014 #3
Old Codger Apr 2014 #4
sorefeet Apr 2014 #6
MineralMan Apr 2014 #5
sorefeet Apr 2014 #7
MineralMan Apr 2014 #8

Response to sorefeet (Original post)

Wed Apr 30, 2014, 09:06 AM

1. I always assume the worst about real estate brokers, banks, and their servicers.

In my experience, they're all in each others' pockets.

I got screwed twice, once buying and once selling.
I'm doing very well renting now.

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Response to sorefeet (Original post)

Wed Apr 30, 2014, 09:22 AM

2. Loan origination fees and interest rates

 

Are often set and locked at the time of processing. If there are delays most lenders allow for adjustments for rate and cost differences if the closing doesn't happen within their time frame. Also, they don't make money until the closing, so like all sales people, they try to close while the iron is hot..so it is likely to be a tactic to hurry you along. They know that if your circumstances change it isn't too late to shop them or bail on the deal..

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Response to sorefeet (Original post)

Wed Apr 30, 2014, 09:23 AM

3. Quick answer, no they are not screwing you

But you may end up paying a bit more. When you lock into a pre-close agreement, it will have an item for how long the interest rate listed will be held--in most cases, it is a term of 60 to 90 days. After that time, the loaner will either charge "points" or a flat fee to hold the rate for another preset period of days (generally 15 to 30). The farther away from the original agreement signing, the more each additional extension will cost.

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Response to sorefeet (Original post)

Wed Apr 30, 2014, 09:23 AM

4. It depends on day of month

 

The market changes daily so that is why the prices change. And the interest of the days of the month while you are waiting for your first mortgage payment. Or if you want your payment to start the next month or the month after...you have to pay interest of the month.

Actually they are saying it "may" change not that it will change.. it could actually be lower maybe.

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Response to Old Codger (Reply #4)

Wed Apr 30, 2014, 09:37 AM

6. Thanks everyone

I really don't know a lot about the financial end of buying a house. Murphy's law usually pertains to me, what can go wrong will go wrong, so I try to be cautious.

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Response to sorefeet (Original post)

Wed Apr 30, 2014, 09:31 AM

5. Is it the cold that is preventing painting?

If a closing is delayed, the lender may recalculate the interest rate and changes from what you locked in are possible. It's not really a rip-off, but rather market conditions that affect this.

If the exterior paint on the home has deteriorated, VA loan rules may require painting before signing off on the loan. You might want to check with a couple of more painting contractors on the job. If the current owner of the property is holding back on the repainting, and you can find a contractor who will do the job, you might be able to convince the owner to switch contractors.

I don't know, but I think you're perhaps misunderstanding the lender's communication. I'd get back with your loan office and get some clarification.

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Response to MineralMan (Reply #5)

Wed Apr 30, 2014, 10:05 AM

7. Thanks MineralMan

No, he is going to let this guy paint it. They weather has been crazy, it doesn't make sense to paint if it is going to freeze or rain at night. The contractor is getting 5 lots next to my place for painting the house. I just about fainted. I have been a painter for 40 plus years and I could have painted my own house and got paid the 5 lots. I am sick over that but the deal is done.

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Response to sorefeet (Reply #7)

Wed Apr 30, 2014, 10:06 AM

8. I'm sorry you're having this delay.

The weather, though, can cause many problems, and painting is one of them. Good luck with your new home!

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