I hope for this to be a meaningful question, not a rant that disappears into the depths of the Pit…
When I both got and re-financed my mortgage, we greased through with no problems. We had one very minor issue with an old car loan, but it was not enough to affect our approvals, and was cleared up well before closing on the house. We knew walking in exactly how much $ the deal would cost us, and even had a bank draft for the amount of the down payment.
But I’ve now had 2 close friends who walked into closings not knowing how much the APR is going to be, or what the down payment was. In one case, the rate went up nearly 5 points from what was quoted. In this more recent one, the lender changed the amount they wanted as a down payment; nearly doubling the amount due at the signing. This was while the couple was at the signing!
Now, I’ve used large, established financial institutions, like BofA, for my transactions. The company that was used in both of the cases above was a mortgage company, and struck me as being less “stable”. Although, in one case it was Countrywide Mortgage, which is not small either.
I would also guess that my credit rating helped; we have a fairly high credit rating.
But I’m wondering how/why companies would wait until the last second before announcing these sweeping changes to the mortgage?