Is my first DSCR loan experience normal?

[Hana Mori]

My first DSCR loan experience was unexpected. I'm looking for guidance from this community. Is my experience normal?

I was given the loan terms verbally from a DSCR loan broker out in California for a cash-out refinance on one of my rentals. The appraised value is exactly what I estimated, as well as the market rent and expenses. However, right before closing, the terms changed drastically, and there were $4000 extra loan fees that were never disclosed during the month-long underwriting, despite my efforts to get a clarification on fees. The LTV ratio also dropped to 70% from the original quote which was 75%, which impacts the cash-out amount. None of these changes were communicated until right before closing. I already spent $1200 on the appraisal. What would you do if you were in my situation?

[Robin Simon]

Quote from @Hana Mori:

My first DSCR loan experience was unexpected. I'm looking for guidance from this community. Is my experience normal?

I was given the loan terms verbally from a DSCR loan broker out in California for a cash-out refinance on one of my rentals. The appraised value is exactly what I estimated, as well as the market rent and expenses. However, right before closing, the terms changed drastically, and there were $4000 extra loan fees that were never disclosed during the month-long underwriting, despite my efforts to get a clarification on fees. The LTV ratio also dropped to 70% from the original quote which was 75%, which impacts the cash-out amount. None of these changes were communicated until right before closing. I already spent $1200 on the appraisal. What would you do if you were in my situation?

Caught the flag on the first sentence "given the loan terms verbally" - Pretty much all the "reputable" DSCR Lenders will give out a detailed term sheet / pre-approval letter / LOI (many different names but same thing) outlining terms and approvals early on in the process - the good news is that if you haven't closed yet you can still switch lenders and see if you can secure your original terms - also good news is that the appraisal, while likely ordered by the lender or broker is in your name and your property, so you can likely transfer it to the new lender