Why am I forced to take an FHA loan?
Buying a house in Florida. Price is 320k, I'm putting down 200k (62.5%).
I'm with PNC, firstly they sent me an 'Estimate' for the closing costs which was great (3.25% interest, 3.38% APR and closing costs in the 11k range).
2 weeks after filling the application they sent me a "real" GFE (previous was not a "formal" GFE) where they raised my closing costs to 13k.
2 days later then sent me a new GFE, closing costs in the 14k.
and now they sent me a new GFE with closing cost in the 17k. (and we're still several weeks from closing so I expect 'new' higher GFEs to come...
1) I know that by law a GFE must fall within a 10% difference with the actual closing costs, but it seems PNC is trying to fool the law by sending me "new GFEs" everytime they change something, so by the closing date the difference will still be within that 10% compared with the LAST GFE but if we consider their very 1st estimate it's 55% higher. Is this legal? normal practice?
2) they are now charging me a PMI FHA fee. But I never asked for an FHA. And I'm putting down more than 60%. My credit record is clean, I always payed my utility/credit card bills by "automatic payments" so I never owed money to anybody. I had a mortgage before and paid in full 3 months ago. So why do I need to take (and pay) an FHA?
3) also, due to this FHA, now the APR was raised to more than 4% as well as my monthly payments. Wasn't it supposed to be locked? (they charge me a fee for that)
I'd like to know, can I turn to another lender? is there a "no return" point (as they are telling me) from which I can't switch off? and if I do switch, do I have to pay them for the "effort"? I already paid in advance the appraisal fee (which, BTW, has also been raised in the last GFE) I wouldn't mind to lose that fee if I could walk away to another lender who saves me more money in the end.
In the last weeks since I signed the contract I've seen all the houses I was interested in before to be sold around the 250k, so, not only I feel (now) I'm buying an overpriced house but also been ripped off by the bank
I had other lenders offering me the money but I turned them down for PNC following my realtor advice, which, BTW is another disappointing character....
Of course I work, in the same industry for over 15 years with a very descent yearly salary.
Well, finally got with the guy on the phone and he, yelling at me, kind of explained that (his actual words in quote): "GFEs are useless, the GOV forces us to write there charges that you will not pay, but we must write them down by law and you must sign it as is", "The loan is what it is, take it or leave it", "you shouldn't ask too many questions, just wait for the closing date".
So I just listened and then told him that I'm closing the negotiations on my side and moving to another lender. I'll lose my appraisal fees (and most likely PNC will send me a bill by surprise any moment), but I feel much better going to another lender. You can make your own conclusions.
- Jim SLv 76 years agoFavorite Answer
It's time to bail on these guys.
You lose application, credit report and appraisal fees. Depending on the next lender you might be able to use the appraisal (if you actually are paying/charged for it) over there.
You'll be in the house for a while. You don't want to wake up in it EVERY DAY -- knowing you got screwed... unlike the people across the street.
- chatsplasLv 76 years ago
Get another lender
Some one is playing games
Don't dump PNC yet, see what new options with new lender
You can pull out any time prior to closing
You will lose application fees most likely, which covers credit check and appraisal
Go to PNC and ask what's going on, why so many changes, why such high fees, why PMI, why FHASource(s): Real estate investor
- 6 years ago
Wow, you are being taken advantage of. Do you have time to chat?
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- CarenLv 76 years ago
theres more to this, do you work?
idea: buy a 200K house, and in 3 years put it up for sale and move then
--- sorry, but something is weird about this.
are you from another country? did you have a job gap? self-employed?
be honest and you will get darn good answers, since there are some very good experts here,,,, real realtors,,, with decades of experience.
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- DavidLv 66 years ago
Wrong realtor. Wrong bank/lender. Walk!Source(s): Only a suggestion.
- Anonymous6 years ago
Get yourself a good real estate attorney to get you out of this messSource(s): Retired bill collector 35 years