BritGuyTN

1 hour before closing i get a call saying that they can no longer do 20% down on an investment property, I need to put down 25%, or they need to put me on another (more expensive) loan program

no change in credit score, reserves etc

I think she expected me to cave in

I just told her that if she doesn't sort it out then my deal with her is off and I will find another lender thank you very much

fatbrit

Lenders tightening criteria coz of the change in market conditions or bait and swap? Could be either!

BritGuyTN

depends how cynical you are

I lean towards the latter!

If I had less than optimal credit/no money down/high income to debt ratio then semi-fair enough

I however don't fit into any of the critieria, I am in charge and they are supplying me with a commodity product

CaliforniaBride

As long as you can take the gamble and live with either outcome then your in a perfect position. Good luck with it, let us know how it goes.

fatbrit

Course you do! But, to be fair, I think underwriters are going to be taking notice and action on the rapidly changing market conditions by tightening up. They must already have a large number of clients in negative equity in certain parts of the country. Why don't you ask the loan officer to tell you with documentation. Shouldn't be too impossible for her to send you notes on her correspondence with the underwriter.

Failing that, and especially if you'd locked the loan, batter her with your local friendly banking authorities.

Chorlton

Exactly what I would have done - smart move. They all want your money, no matter how big the friendly smile is.

franc111s

You'll be fine. Happens a lot. The lending "broker" may have to use some of their profit / commission to increase the insurance premium risk of the 5% difference. It's all chicken feed but since it comes out of their commission you'll probably be OK.

Chorlton

In fact, an hour before closing is well out of order.
Get a new lender!

Dan725

Hope you get it sorted. Doesn't surprise me in the slightest though - you're definately doing the right thing and not keeling over to them.

We got to the day of our closing and all of a sudden they said they might not be able to do it that day....went down to their office and kicked up a stink, phoned their head office and refused to leave till it got sorted. They somehow "managed to pull it out of the bag", funny that. Even managed to get 0.15% off the interest rate for the inconvenience - makes you realise what a racket it all is, they could've obviously taken that 0.15% off earlier....

BritGuyTN

Yep it is a racket, whats annoying is the 1 hour before closing and that none of my circumstances have changed

also, I always though 20% down was the golden rule for getting the best rate

and this is on a $120,000 rental duplex! not on a $1 Meelion McMansion

scammers

Ray

Phone the contact ..I PMed you about ... may even get it down to 10% or so I'm told ..

BritGuyTN

cheers ray

I will give them a call is my one does not come up with the goods in the next couple of hours

funnily enough, the lender I am currently using is in Fl

Ray

The lender all retire here ..and let the money come to them ....