I was ready to close on a mortgage loan, and the day I was going to closing I got a call from the mortgage company telling me that the rate of 6% they locked us in was not going to be the rate in which we were going to close. They gave us a different rate of 7% at the last minute before closing. We declined the 7%, but they made us paid for their costs of $385.00. Is this right? I never heard of such a thing, so I asked around and was told that mortgage companies absorb the costs when they can not deliver what they promise. Why should we be out of $385. When we did not get what we were promised. The house appraisal is useless to us because other mortgage companies use their own appraisers or it has to be in their company's name. We gave the mortgage co, a check and latter when we were told by other mort. Companies that they should not done that, we stopped payment on the check. Now the Mortgage company wanting to take us to court.
What should I do?:confused: :confused: :confused:

Did you actually get a lockin? If so, what was the term? If you had a locked in rate that did not expire, then the mortgage company is bound to honor that rate. You can sue them for any losses you incurred.

One thing to add here. You usually have the option to lock in a rate for a specified time. But you have to specifically ask for a lock in and it does expire.

Yes - you should have had your rate LOCKED IN at the time you received approval.

If you are working through a mortgage broker/third party, they have no control over what the actual lender charges and if the mortgage broker rep is "new" they may not have known... I'd sue them in Small Claims court.