After getting a week extension from the seller regarding my mortgage commitment and 19 days into the application process, the loan officer from mortgageselect.com said they could not offer me a 5/1 ARM for a New Jersey co-op. Interestingly, the loan officer called me the prior business day to let me know I had been approved and gave me a verbal commitment. The next day, they said all they could do was a 30-year fixed rate.
I relied on the information that was provided to me that they finance New Jersey co-ops with adjustable rate mortgages. I feel it was a "bait and switch". Now I have no time to go to another lender and have to accept the product they are offering me if I want to buy this property. All they said was that they made a mistake. Well, it's a bad mistake and one that should have not taken them 19 days to uncover.
I have in writing a pre-qualification document outlining the 5/1 arm they said they could offer me. I also have additional papers speaking to the fact that they were going to offer me an adjustable rate mortgage for a New Jersey co-op. I may lose the rights to buy this property today plus it is now going to cost me more money on a monthly basis. I went with them because of the low rate they were offering. Now I am stuck with a higher rate on a product I was not interested in from the beginning.
