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I hope everyone enjoyed yesterday’s episode at my expense! Despite what many of you may think, I make mistakes while filming.
Speaking of mistakes, who pays when changes are made to your original loan application?
Your loan officer, bank, you, or someone else?
In today’s episode, I grab a midday glass of wine, talk about building cork houses, and play four rounds of everyone’s favorite mortgage-related game show: “Who Pays for What?”
Find out who wins and who loses:
For more information about the aforementioned cork house plans, click here.
Let’s play a game of “Who Pays for What?” I give four examples of changes to an original loan application and tell you who is responsible for the costs.
Who Pays For What?
1. Your loan officer forgot a fee for your title policy.
A title fee is a standard fee that should be disclosed on your Good Faith Estimate (GFE). If your loan officer forgot to mention this fee in your GFE, it isn’t your fault. The company your loan officer works for has to absorb the cost on your behalf; they cannot come back later and charge you. Loan Officer Pays!
2. You left for a week of vacation while your loan officer was waiting for your documentation to get the loan through underwriting.
You now have to extend your lock because you did not meet the deadline. The costs are on you for this one. If you were the reason in the delay, it’s only fair you pay for that expense. You Pay!
3. You had a hurricane or tornado come through your city and the lender requires another home inspection to make sure there is no damage. The inspection fee is $125 and you may have to extend your lock.
This is considered a change of circumstance, and unfortunately you would have to pay for both of these costs. The only way you could get your loan officer to cover this costs is to prove that he caused the natural disaster. You Pay!
4. Your loan officer goes on a three day drunken bender and you can’t get in touch with him for over five days. You submitted all the requested paperwork (loan stips) as needed and on time, but he missed your lock deadline.
The lock extension is not your responsibility in this situation. If you can prove your loan officer delayed the process, they have to cover the costs. Loan Officer Pays!
I hope none of you run into these issues. However, its a guarantee that some of you will. Take your bumps if you deserve them and stand up for yourself if you don’t! Hope this helps.
Let’s change the way people shop for a mortgage…forever!
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002