Litigation for breach of contract?

[warnerdavid]

Hello, maybe someone can help me here.

I recently just purchased my first house.(week ago) My realtor sent me to a broker who quickly (within two days) had me sign a loan app, contract and other papers. On the papers the loan amount and figures were all wrong. The house is 40,800 and he had it as 48,000.

While i was signing the papers I noticed one was about if it was going to be my primary residence. I wanted the house to be as an investment propery, but, signed it anyway as he was pushing me through the papers fast. (we did it at a buffalo wild wings)

The next day i called the broker to inform him of my intentions that i wanted to rent the house out in the future, and he tryed to persuade me not to. I informed him thats what i wanted and to figure otu what rate and down payment I needed. He told me he would get back to me, and he never did. I called him yesterday and he informed me of his rates. (25% down and 7.5%)

To make a long story short, I can get a much better rate from a credit union then him, do i have to stick with this broker? Im making alot of mistakes for a first time home buyer. Am i going to face being sued for his brokerage fee? The loan app and all the papers have the wrong amounts and figures on them?

 

[dee_dub]

To make a long story short, I can get a much better rate from a credit union then him, do i have to stick with this broker?

No. Even if you have a contract, you could always break it.

Am i going to face being sued for his brokerage fee?

That depends entirely on what you've signed so far. Without knowing the details of your agreement, and the cancellation terms, it is impossible to say.

I would suggest you immediately advise the broker to stop looking for a mortgage on the current terms because they are incorrect. (Brokers are often only entitled to their commission when they bring together a lender and a borrower on the agreed-on terms. You don't want that to happen.) You can then decide whether to terminate the broker or correct the terms of the deal.