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Hell Toupee

wrote:

I was applying for a Home Equity Loan and I told the Loan Offincer that
I wanted a 60,000 loan and a fixed rate. He took down my info and said
that since my husband and I have excellent credit that we will have no
problem.

... I talked to him again, and then he said I
couldn't get a fixed rate and I told him I absolutely wanted a fixed
rate,

It's been a practice of scuzzy lenders for several years now to
pressure people into ARMs instead of fixed rate mortgages, because 1.
more people qualify for ARMs than for fixed mortgages, and more loans
means earning more commissions; and 2. the lender will make more money
on an ARM than a fixed-rate loan, since the interest rate adjusts.

It's fairly routine to have them agree to set you up with a fixed-rate
loan, only to arrive at closing and discover they've set you up with
an ARM. They're counting on you needing the loan badly enough that
you'll go along with it. Or that you won't read before signing, so you
won't even realize till too late that you've been strong-ARMed by your
lender. Don't fall for it.

So I recieve the good faith estimate along with the
other papers and then the monthly fee was 466.00 with a HELOC variable
rate. I called him and he said by law they have to send those and don't
worry about what's on there, just sign it and at the closing he'll have
the correct numbers.

He's a liar. Take your business elsewhere. Do not do business with
people who practice deception.

And then they called up and said our loan
didn't go through because one of our real estate properties payments
was over 30 days late and the underwriter wouldn't accept a letter
explaining why. This all took about 3 weeks!What do you make of this.

That explanation may be true. It may be bogus. They may have simply
not wanted to bother setting you up with a fixed rate loan. Once you
balked at a variable, this may have been the excuse they used to blow
you off.

Try another lender. Describe in writing the loan (amount, type) you
are seeking, so they can't claim they misunderstood what you were
asking for. If they indicate a desire to work with you, ask them to
quickly send the proposal in writing, and set a deadline to receive
it. If they don't get back to you in time, or if they change the terms
in the proposal, move on to another lender. And read everything
carefully before you sign.

And never, never assume your lender has your best interests in mind.
They're out to make a profit. It's up to you to determine what you can
afford, and upon what terms.

HellT