Current Events > Home owners and I being conned ?

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I picked out a home and loan and even starting paying the down payment and stuff, and this was weeks ago. But they have not started the build yet. Today I get a call from the loan people and saying that due to interest rates going up . My payment will be 300 dollars more then what was signed and agreed on.

This doesn't seem right, but I am first time home owner. Am I being conned?

cjsdowg posted...

This doesn't seem right

no, it does not but IANAL

not a question to ask a bunch of people who live with their parents

Sounds weird to me, my mortgage rate was locked in and could not change as long as I closed by a certain timeframe. And some unforeseen challenges prevented us from closing on time and it did jump a bit. >.>

Did you apply for a fixed rate mortgage? This sounds fishy af

Lorthremar posted...

not a question to ask a bunch of people who live with their parents

Speak for yourself

*Lives with nana

cjsdowg posted...

My payment will be 300 dollars more then what was signed and agreed on.

I don't think they can just change the terms after signing. Get with a lawyer.

it depends on what you actually signed. did you read the papers and understand them? it should be answered there.

Interest rate should be locked if you are under a ratified contract. Have you gotten that far?

yeah, it depends on what you signed. I read that many new constructions have a market rate adjustment clause so that people can't lock in, build, then immediately sell for profit

Thanks for the advice so far.

I am not sure the type of contract that I signed. But I see they have the "estimated monthly cost " so that is going to give them the room to up the price. However I have already put like over 10 K down as payment. So that is where my rate should be since I already started paying.

Today has just been so shity.

Are they a reputable company? Tell him that you're going to have your lawyer look over it and see if they change their tune.

When i bought my first car a company tried something like that and thats what my boss told me to do and they changed their tune real quick.

cjsdowg posted...

Thanks for the advice so far.

I am not sure the type of contract that I signed. But I see they have the "estimated monthly cost " so that is going to give them the room to up the price. However I have already put like over 10 K down as payment. So that is where my rate should be since I already started paying.

Today has just been so shity.

There should be somewhere that it talks about rates. It should either state that your rates are frozen on a specific date, or that they will somehow select the rate during a period of time with a start and finish date. If there is neither of those, I don't know what you signed.

Fuck.. Looking at the contract I am boned.

THIS IS AN ESTIMATE ONLY. PRICES, INTEREST RATES, AND OTHER FIGURES ARE SUBJECT TO CHANGE WITHOUT NOTICE. THIS IS NOT A REPRESENTATION OR WARRANTY BY SELLER, AND IS NOT LEGALLY BINDING ON SELLER.

Oh well I guess my turtles are not getting a new tank.

Did it actually bind you to buying the house then? You may have an out.

I recently bought a home and before you get the final draft of the loan application that you sign nothing is set in stone.

There is basically no ambiguity in when rates are locked in when getting a home loan

And if that wasnt a question you asked at some point in the middle of everyone talking about interest imminently going up... idk maybe you arent ready to be a homeowner anyways

Trumpo posted...

I recently bought a home and before you get the final draft of the loan application that you sign nothing is set in stone.

Ya thats what I was gonna say too, but TC said hes already paid the Down payment and some other stuff so now Im not sure lol.

never had to deal with construction loans though.

I don't understand how he's paying his mortgage if it's not locked in? maybe he means he put down the earnest money, but the actual loan is not finalized

g980 posted...

And if that wasnt a question you asked at some point in the middle of everyone talking about interest imminently going up... idk maybe you arent ready to be a homeowner anyways

Thanks for the support. But people were not speaking about rates going up when I signed signed all these things.

You paying the builders or the bank?

g980 posted...

There is basically no ambiguity in when rates are locked in when getting a home loan

And if that wasnt a question you asked at some point in the middle of everyone talking about interest imminently going up... idk maybe you arent ready to be a homeowner anyways

When you are buying existing inventory this is true. Buying new before it has actually been built is a bit different experience that most people haven't gone through.

Unsugarized_Foo posted...

You paying the builders or the bank?

I am working with the Builders Loan company.

I was worried about a bank getting over on me.

[LFAQs-redacted-quote]


I bought the house in December. The rates were not going up like this then.

No, you conned yourself. Did you have a real estate agent or lawyer look over the contract before you signed?

cjsdowg posted...

Thanks for the support. But people were not speaking about rates going up when I signed signed all these things.

Rates were announced to start increasing months ago. Have you not been paying attention?

cjsdowg posted...

I am working with the Builders Loan company.

I was worried about a bank getting over on me.

Why not shop for other lenders? Plenty of them that arent banks and do a great job. The builders lender will always favor the builder.

Always, ALWAYS have a lawyer with you before signing a contract. ALWAYS. Yes, it will cost you extra, unless you have a friend, or family member who are Lawyers, but better safe than sorry. And tc, you may be sorry. Sorry.

cjsdowg posted...

I am working with the Builders Loan company.

I was worried about a bank getting over on me.

That was the mistake right there

Well what is done is done.

Thanks for the help everyone even the people with harsh words. Because I did do it to myself. I just wanted a house so badly. It was like all my hard work had paid off. I lost my apartment due to covid and this was be getting back on my feet showing the world I rock. But oh well. 5 year plan, move out and on in 5 years.

When are you supposed to close? The thing is, with the way you signed this contract there is a possibility that the rate will continue to increase. Your mortgage payment may very well increase again.

Cleo_II posted...

When are you supposed to close? The thing is, with the way you signed this contract there is a possibility that the rate will continue to increase. Your mortgage payment may very well increase again.

June, they are calling me in the AM so I can lock in a rate.

Norman_Smiley posted...

When you are buying existing inventory this is true. Buying new before it has actually been built is a bit different experience that most people haven't gone through.

Thats a good point, didnt really pay attention to the new construction part. Idk as much about those, just that they can be more complicated

But still - understanding terms around interest rates is really really important, especially given:

Cleo_II posted...

Rates were announced to start increasing months ago.

(Though i dont mean to pile on tc - house buying is a pain in the ass, and you were very smartly focusing on monthly payments/cash flow)

cjsdowg posted...

June, they are calling me in the AM so I can lock in a rate.

Just make sure you understand the terms of the lock before you sign. Is it until close? A few months? etc

cjsdowg posted...

June, they are calling me in the AM so I can lock in a rate.

even if you lock in a rate it's only good for x amount of days. June is far away.

pupeye posted...

even if you lock in a rate it's only good for x amount of days. June is far away.

I guess I will have to go with that :( . Or I might just try to get my money back and go back keep renting.

CEman gets fucked by big, burly builders (Live)[GONE SEXUAL]

This is bad, I went into Afib after worrying about this.

What did they say about the rate lock? Worrying yourself to death isnt going to do anything for you. Take a deep breath.

Cleo_II posted...

What did they say about the rate lock? Worrying yourself to death isnt going to do anything for you. Take a deep breath.

Thanks, I now got it locked in. They said we could not get it locked before since they didn't brake ground yet. I am trying to see what I can do to cover he differences in monthly payment. I was planning on getting a Lizard I would put that oh hold and that will help out a bit.