How common is it for lenders at the time of closing to change the terms that they quoted you?
by 
OZe
ANSWERS: 3
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Not as common as people may think, but more common than you want it to be. They have a right to change the T&C up to closing, though.
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Most of the time when this happens you are using a mortgage broker and someone has messed up. You can always not sign the paperwork. The lender will notify you in advance if something has happened like the appraisal not coming in high enough or your income not being accurate! But in those situations you should know early in the process! Brokers change the terms at the table more often and like I said it is usually something that they have done or they could not get you loan done with the terms they quoted you and make any money doing it with those terms , so they changed them.
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The majority of reputable loan agents and brokers will let you know if there is going to be change in terms as soon as they find out. Especially in this mortgage melt-down climate. The investors are pulling out of the market, and the lenders are finding their sources disappearing by daily. If the terms have changed drastically when you go to the closing session, you have to carefully examine your options. Many times it is best to simply walk away. Especially because the price might drop 10% by the next month.
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