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Can a lender change my APR from 4.417 to 4.45 two days after closing?

by juifeatu181 from Dallas, Texas. Dec 8th 2015 Reply


William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Yes and no... the APR is allowed to change up to 1/8 to account for incidentals, but it's only allowed from the time when your lender disclosed, to the final numbers on the closing documents.. the APR is calculated by selecting items or fees that are considered "Pre Paid Finance Charges"... because of our current lending environment where lenders are walking on needles in fear of making a minor mistake that can cost millions, lenders are selecting fees that are not necessary considered a pre paid fiance charge, but they are marking them that way just in case.. sort of Over Disclosing.. So long as your "Note Rate" has not changed, the APR is just a government calculation, and wont have any affect on your payments... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Dec 8th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

It shouldn't have changed after closing, the lender may have not had some fees checked correctly I would confirm your note rate didn't change and you did not have fees added to your loan.

Dec 8th 2015
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Thank you all,The lender paid for some title fees which he didn't lump together as borrower paid fees before closing. This made APR lower. Then after the closing, a new disclosure was given with a new seller credit and the title fees lumped as borrower paid fee... This increased the APR.The outcome of this: the total cost of loan increased by 3000 or more.. Even as the closing cost reduced.Should I be worried or go ahead and agree to the new terms?

Dec 8th 2015
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Jesse Stroup (jessestroup)
#195 ranked lender in California - 589 contributions

That is a yes and no answer. A lender can not just change loan numbers with out updating you first you first. Call your lender for answers

Dec 8th 2015
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Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

So you are now being charged and extra 3k based on what I see, that would be a concern and conversation to be had with the LO. That far into the transaction though it may be a sad bit the bullet situation. Any other lender will take at Min 8 days to close the cloa

Dec 8th 2015
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The note rate did not change. According to the lender I shouldn't be concerned at all.. Well, I see these total loan cost increase.

Dec 8th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Ok, if I understand correctly, in your scenario, the fees that were originally disclosed as lender fees, are now being broken out because of a seller credit.. and instead of him paying them, he has to show those fees as borrower fees, but then show a lender credit in the boxes below to offset those fees.. and because of all these number moving around, this has changed the APR. This should not be a problem.. simple mathematics.. if your loan amount is not changing, and your not having to come in with even more money, the "Note Rate" has not changed, but the APR has changed an insignificant amount, then this really isn't a problem.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Dec 8th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Yes and no... No, you can't change the terms of the loan without a valid reason and disclosing to the client. But yes, you can fix things. I'll bet your interest rate and closing costs didn't change a penny... But APR is such of overwhelming worthless government required bunch of disclosing that is easy to screw up, and doesn't mean anything at the end of the day. In my 25-years of lending, my opinion is that NO ONE should ever make a loan decision based on disclosed APR. It is good in theory, but horrible in actual practice.

Dec 9th 2015
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