Home Buying in Birmingham>Question Details

Auburnfanz07, Home Buyer in Birmingham, AL

I need help with a Alabama step-up program question about fees, lender responsibilities and my rights

Asked by Auburnfanz07, Birmingham, AL Fri Oct 19, 2012

I am going through the Alabama step-up program and I have been under contract on a property since October 5th and the lender still has not given me a good faith estimate or truth in lending contract what are my rights?I have asked for thedocuments but still haven't received them. I have paid out over $1500 already to get my ratios aligned like she said I need to and in earnest money and now she says I have an up front cost that I cant afford to pay of $530.22 for a bond commitment fee and if I don't pay it upfront they wont write my loan. I was never made aware of any up front fees and I have used all my resources to cover my appraisal, pay off debt, pay home inspection fees, ect. Is my lender breaking the law by failing to disclose this fee??

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The seller can also pay for this fee if you can not cover but that amount will not go into the details of the loan as it is a fee to lock your rate in with AHFA. They have a 30 day lock fee at 1% or a 15 day lock fee at .5%. Their rates hardly move so the 15 day is your best bet. Again, the seller can pay the fee directly thru the mortgage company.
0 votes Thank Flag Link Wed Oct 24, 2012
Dear Auburnfan,
There is an upfront commitment fee with the Step-up program, It worries me that you have paid money to get your "ratios aligned". Sounds like you may be dealing with the wrong company. As far as breaking the laws, I would say no, but I aways go over the fees with my clients on the first visit and long before I order an appraisal.
War Eagle.'86
Larry Hunter
0 votes Thank Flag Link Wed Oct 24, 2012
The lender has 3 business days to get you RESPA documents which includes the good faith estimate from the time the lender receives the purchase contract, your income info, & social. Please contact me if I can explain further. I specialize in The Al Step Up program.
0 votes Thank Flag Link Sat Oct 20, 2012
I might suggest that at this point, if your lender has been unresponsive, you might leave one more voice-mail suggesting that you'll be contacting the State Attorney General's office to report the lender to them. If you haven't already been to AHFA.com, there is a wealth of info there. Just search "step up" from the home page. If your lender doesn't respond promptly, contact the AG's office: http://www.ago.state.al.us/Page-Contact-Us
0 votes Thank Flag Link Fri Oct 19, 2012
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