I recently completed the purchase of my house through a morgage broker. At the beginning of this process, I asked the broker about the closing costs, what would I have to pay. He told me that all the closing costs would be financed into the loan and I wouldn't have to have any money at closing. My bid for the house was accepted ($185,000). A couple weeks later I got a call from my real estate agent saying she had talked to the broker and we needed to raise the bid $5000 to cover the closing costs. Fine, we do all that. Everything is going smoothly until I show up at closing only to find that the closing costs weren't $5000, but over $10,000 and I would have to pay over $5700 to get the house. I talked to the broker who admitted that he had told me and my real estate agent that there would be no costs due at closing but that was his mistake. He gave me a $1600 broker credit and they refigured the taxes (they had figured too many months of local taxes) and brought the closing costs down to $3600, which I still didn't have and had to borrow from family members. The only paperwork I ever recieved from this broker was the initial loan application. I never recieved any payment information (how much and when the mortgage payments were due), any closing costs, nothing.
What are my options here? What kind of compensation can I expect from this incident, if any?
Any help is appreciated!!
What are my options here? What kind of compensation can I expect from this incident, if any?
Any help is appreciated!!
