I wanted to refinance our home for a better Interest Rate. Steven Frost Executive Mortgage Banker, ran my credit report, assured me we were fine if I would send him copies of Financial papers proving our income, I did... was told we were 'approved'. He locked in our rate... He told me I needed to give him a CC # for a $500.00 refundable deposit. I did. They ordered the appraisal, Insurance and Tax info and the Title search.
Our home was appraised for $389.900 less than a year ago, I know the value has fallen some and was aware of this. We are in an area where the values have not fallen more than 10%. They never ran my credit card thru until an hour before they called to tell me my appraisal came in at 272, 000 and they could not do the loan. (The interest rates began to go back up some) I believe this had something to do with it. He said he would call me in June (due to the fact our home had been up for sale and was only off the market for 2 months or so) We wanted a 198, 000 loan. I was previously told this would not be a problem.
What upsets me is they should not be able to get the 500.00 deposit. He said, he would 'see about' getting us back some of it. It seems they have a practice of doing this to people.
I believe if the loan does not go thru for whatever reason, (Unless I change my mind) they do not get the deposit.