We were initially quoted a specific interest rate for a 15-year fixed mortgage by Loan Depot without a buy down. After confirming this rate via email, the loan officer became unreachable. When we finally received our paperwork, the rate was over a point higher than discussed, and it included a buy down. After multiple attempts to contact the loan officer and their supervisor, only customer service has responded. Is this a case of bait and switch? Are they hoping we won’t notice the change? Additionally, if we decide to look for other banks, will having multiple hard credit inquiries affect our credit score?
Did customer service provide any explanation for the rate change? Also, you should definitely shop around for more quotes. Multiple credit inquiries within a 30-day period for mortgage applications are treated as a single inquiry, so it won’t impact your credit score further.
@Adair
Customer service did not provide any explanation. They only mentioned that they’ve forwarded our concerns to the loan officer and their supervisor, who have yet to respond. I’m considering other options as the overall rates have increased since our initial quote.
@Ellis
I recommend escalating your concerns up the chain of command. If Loan Depot offered a rate that is no longer available, they should be held accountable. Also, explore other non-bank lenders who might offer competitive rates without such issues.
@Adair
Where else should I look? Are banks or credit unions better, or should I find a local mortgage broker?
Ellis said:
@Adair
Where else should I look? Are banks or credit unions better, or should I find a local mortgage broker?
Always consider using a mortgage broker; they can shop around on your behalf and find the best rates.
Ellis said:
@Adair
Where else should I look? Are banks or credit unions better, or should I find a local mortgage broker?
Starting with your bank can be a good option if you already have a relationship with them. Trust and established relationships can play a significant role in securing a good mortgage deal.
@Adair
Banks are not always mortgage experts. While credit unions offer good deals, a broker who specializes in mortgages can provide more detailed, knowledgeable service. Choose based on who offers the most expertise, not just on existing relationships.
Ellis said:
@Adair
Where else should I look? Are banks or credit unions better, or should I find a local mortgage broker?
My experience with credit unions has been positive, especially for mortgage processing and rates.
It’s time to consider other options. Additional mortgage inquiries for rate shopping are clustered as a single inquiry if done within a short period, typically 14 to 45 days, depending on the credit model used. This clustering minimizes the impact on your credit score.
Rates can change frequently, sometimes several times a day. If your rate wasn’t locked, it’s subject to change until it is secured.
Aubrey said:
Rates can change frequently, sometimes several times a day. If your rate wasn’t locked, it’s subject to change until it is secured.
Rate changes can indeed occur rapidly, reflecting shifts in the broader financial market.
@Jamie
I’ve seen rates change by the minute during volatile periods.
Leith said:
@Jamie
I’ve seen rates change by the minute during volatile periods.
Absolutely, it’s a dynamic market, and rates can even fluctuate by the second.
This situation sounds like a communication failure rather than a deliberate bait and switch, but it’s still a serious issue. It might be a result of the loan officer failing to lock in the rate as requested. Explore other lending options to ensure you get the best possible deal.
We had a similar issue with another lender. It took significant effort up to the closing to get the numbers corrected.
Crosby said:
We had a similar issue with another lender. It took significant effort up to the closing to get the numbers corrected.
It’s disheartening to hear that such issues are not uncommon in this industry.
@Ellis
Yes, unfortunately, it’s not rare. Some regulations are overlooked, especially with builder-affiliated lenders who may have different incentives.
You should have received a Loan Estimate explaining the rate change. If you were told your rate was locked and you have documentation to prove it, follow up vigorously. If unresponsive, contact their customer care or consider reporting them to regulatory authorities.
@Zola
They initially confirmed the rate lock verbally, but the paperwork doesn’t reflect it. They now claim it’s a clerical error and are sending a revised version.