About Doug Walker Expertise Fair and honest lending is my passion. I've been in full time in the mortgage business for 20 years as a loan officer, manager, owner, underwriter - and can probably handle most any question. I can help you save money on your next mortgage loan by explaining closing costs and identifying fair fees and "junk fees".
Experience I have owned my own company as a broker and a banker, managed large production teams and have been a top producer in personal loan production. My experience includes all types of real estate lending: Conventional, FHA, VA, contruction and development loans. I currently work for one of the largest mortgage lenders in the nation and specialize in jumbo loans for private banking clients.
Education/Credentials I have obtained mortgage and real estate licenses and have taken numerous continuing education courses. My certifications include underwriting authority for loans up to $1,000,000 and instructor for first time home buyer education courses.
Awards and Honors President's Circle, Market Builder of the Year
Real Estate Home Mortgages - Didn't purchase a home, but lender wants to charge a $350 Pre-Purchase Rate Protection Fee.
Expert: Doug Walker - 8/26/2009
Question I applied for pre-approval over a year ago. I decided to not purchase home and through the pre-approval letter off to the side. Apparently I elected to get a Pre-Purchase Rate Protection. This was approximately 18 months ago. Since then I have become unemployed and have been laid off for more than 6 months. Just today I received a call stating that I owe $350 for not going through with a loan and the Rate Protection expiring. I only asked for a pre-approval letter and a rate protection am I obligated to pay this even if they would not give me a loan because of unemployment?
Answer David,
The rate protection fee of $350 is kind of odd for starters. Most rate lock in programs do not require an upfront fee. And they can't lock you in until you actually have a property. Most preapprovals are done before you identify a specific property to buy. Did they specify a rate and a period of time you were locked or guaranteed a certain rate? If not, I am not sure how this rate protection plan worked and I think it was purely a junk fee with no hard costs associated with it.
My opinion - This company is probably going through some revenue struggles now and pulled up some old loan applications to find ways to make some money.
If you didn't sign anything agreeing to this fee. I would ignore their request. The only fees lenders are entitled to, on loan applications that do not lead to a closed loan, are credit report fees, appraisal fees or other hard costs incurred to get the loan approved.
A rate protection fee does no sound like a hard cost in this case.
About Real Estate Home Mortgages
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