can a loan agent charge me if I don't end up going with their loan product?

Asked by Chini, Bay Street Viaduct Area, Savannah, GA Mon Mar 31, 2008

I was shopping for loans and I got a better deal with one lender. But, now the other lender is charging me a fine because I am not choosing their approved loan. But, their loan rates are much higher. Is there any way I can not pay this fine?

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RE/MAX Empire…, , Texas
Tue Apr 1, 2008
I was a loan officer prior to becoming a realtor some insight. In my state you wouldn't have to pay the fees but I am not sure how it works in yours. But let me add this- I would quote a rate and loan program to someone and they would reject it because someone gave them a better rate. However, when it came down to closing their rate would either change or the closing costs were higher than they would have been with me. If someone is quoting a better rate you need to pay close attention to the other fees. Compare both Good Faith Estimates (GFE's) and ask both loan officers lots of quesitons about what you see. It is likely the first loan officer will match the second's rate if the work has already been done.
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Sarah Eubanks, , Oregon City, OR
Mon Mar 31, 2008
Although I cannot answer rules in your particular state, as a loan consultant, I can tell you that this charge sounds ridiculous. Did you sign paperwork with the first lender which locks you into a contractual agreement? If not, I would recommend phoning their superior. Perhaps you can get rid of this lender with a poor conscience.
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