If consumers could learn to shop for a mortgage loan officer...not a loan. Situations like yours wouldn't happen. A good loan officer will put you in the best available program. A really good loan officer may even refer you out to another lender that offers a better program for your specific needs.
How soon are you closing?
20% down on a three flat used to be accurate but it hasn't been accurate for Fannie/Freddie in some time.
You can still change lenders if you really want to but consider the down side risks of doing so and any per diem you may be threatened with for missing your closing date (knowing your seller's mentality will help, your agent may be able to provide some insight).
Best of luck to you!
Hope you situation is resolved soon. Best to you!
I think you could even get the lender to pay for the attempted bait and switch. You can also sue them in smalls claims court.
Obviously it's too late to start over. Best of luck to you.
As others have stated, apparently the rule for a conventional mortgage for 3-fam is 25% downpayment. So why trap me with 20%, only to demand 25% later. Now not only do I have to pay a higher downpayment but also at interest rates that were not the best for me. Further by going with this non-existent loan product I pretty much gave up on the option of looking into FHA financing.
Now I would love to walk away, but I am on the hook for the apparisal fee and other expenses aparently, apart from the time and money invested.
So, you see how I am trapped and all those mortgage brokers who were upfront with me lost business to someone who did not even match their terms. The sellers too are losing money ( they evicted tenants paying the highest rent to make room for me).
Best of luck, Nichole Bookwalter
But, you can do an FHA mortgage with less down payment.
As for the field review, the LENDER actually hired a company to do the appraisal. It's unbelievable that they want to reverify the company that they hired!
That's exactly why you have a commitment date. What occured that changed the terms you were offered on your good faith estimate? Most often changes like that will occur because of appraised value or credit scores. The other potential factor could be your Debt to Income. The lender could be requireing a higher down payment to bring your ratios into tolerance.
Often there are things that change during the lending process (especially with investment properties) If you can afford the additional money down - then think of it this way, this just means you owe less money on the property and you actually own more of it.
If you are concerned that this is a bait and switch (I'm not sure that this is the correct term) I would ask to have the lender let you know, in writing, why the increase is required.
This could mean that the investors for the loan are not sure of the property and it's holding value.
It could mean that something changed on your credit/debt ratio and the lender would feel more secure with a little more money down. If after they answer your questions you still feel that things aren't right i would advice asking your realtor to speak with them (we often speak a different language and can help translate mortgage terms) or have your real estate attorney look things over. You shouldn't be penalized for delaying closing for a couple of days to make sure that you are still in good lending hands.
the up side is that having to bring more money for the down payment should also mean that you will have a lower monthly payment.
I will say that most likely this is not a con on the part of the lender and this is not something that happens all of the time, but it does happen.