Can you sue a Loan Originator for misleading you on finance options?

Status
Not open for further replies.

Plcarr

New Member
My husband and I are tyring to purchase a home in the New Mexico. We are retired Military and we arlready have 1 home secured by our VA, so I contacted a loan originator that I was referred to buy the builder we wanted to build our house. I explained our situation with her and told her we needed to find out how much we had available on our VA and if it was even possible to purchase another home using VA. She took all of our information ran our credit we had several discussions about the home. A few weeks later I received a pre qual letter from her we meet with our builder and signed a contract and the building process began. We also put down 1% ($2,698.00) of the home price with the builder as per our contract. About 2 months have past and construction is going strong, when I spoke with a friend about VA finance and was told the max up can go is $417,000. Which I knew the balance of our existing home and the new home exceeded that slightly. So I did some research on my own and found out that my friend was correct. I called my loan originator and she said she would have to get back with me. A couple days she called me back and said that we were not going to be able to go VA becuase of the amounts. I think what upset me the most is she didnt even acknowledge how much she had messed up and how this was going to affect my husband and I, her only solution is well you will need to go FHA or conventional. I was so upset with her I selected to go to another loan originator to try and see what our options were. And yes we were unable to go VA and FHA & conventional have so many extra cost liek the 3.5% down, and the PMI. So for us to proceeed with our house we would have to come out of pocket for a down payment of $9,400.00, then closing cost. So we decided to back out of the contract with our builder and look for a house that we can use our VA with. We lost the 1% down with was $2,698.00, so we held up our end of te deal wit our builder and I dont think it is fair that the person who caused all of this gets away with it. Please advise on what my options are in this type of situations.-- Thanks Patty Carr
 
I don't believe you have any legal means to recover the down payment, if that is what you are looking for.
From what you describe it seems things may have moved quickly. Whatever the case, the responsibility is yours to make sure funding is available before signing the contract.
I am surprised the loan ever got approved if you were over the limit, but they may have believed you would make up the difference in the down payment.
It seems you have already resolved this as well as it will go.
 
Status
Not open for further replies.
Back
Top