Try to Resolve Problems With Agent Before Making a Formal Complaint

One other thing I like to do when researching companies is to go to a news search engine (like http://Google.com/news) and type the company's name into the search box. You should also find out the name of the owner or president of the lending company and type that name in as well. This should bring up any news reports concerning the company or forum threads where the company is discussed.

As far as the upfront fee, $375 for an appraisal sounds a bit high, but depending on where you're located and how pricey your property is and whether it includes the costs for the credit report, it's not too far out of the box. And it's normal to be asked to pay this fee upfront. The lender, not the homeowner, always chooses the appraiser.

But you should get documentation from the lender indicating the type of loan you have applied for as well as other information about the loan process at or before you pay the fee. It would not be unreasonable to ask for this documentation now to determine whether the lender's fees and costs are reasonable and to understand the terms of the loan. The lender, in turn, could tell you that he or she can't process the loan until the fee is paid. Still, you should delay the process until you understand what you are getting into.

Before you start the refinance process, make sure your house will appraise out in value. If it won't, due to local foreclosures or declines in property value, you would be better off waiting.

Talk to a local agent (or the agent that sold you the property) to see what homes in the area have been selling for and to find out what your home is realistically worth. If your home has dropped too far in value relative to the mortgage you carry, you may find it difficult to refinance.

I have several credit cards from the same company. One of these cards charges me a $75 annual fee. I have had this card for many years and am concerned that if I close this card, I'll bring down my credit rating. Can closing an account that I've had open for 20 years hurt my credit score?

Yes. Credit scores evaluate what types of credit you have, how long you've had these accounts and what your payment history has been.

If you've owned a credit card for 20 years and have had an excellent credit history with that card, and then you close it, you can damage your credit score significantly.

Ask the credit card company to change your credit card to a card that doesn't have a fee. Start with the toll-free number to the customer service department. Do not agree to close the account under any circumstances.

If you're not getting anywhere with a customer service person or a supervisor, ask to be transferred to the customer retention department. This department typically has more leeway.

Ilyce R. Glink is an author and nationally syndicated columnist. Samuel J. Tamkin is a real estate lawyer in Chicago. If you have questions for them, write Real Estate Matters Syndicate, P.O. Box 366, Glencoe, Ill. 60022, or contact them through Glink's Web sites, http://www.thinkglink.com and http://www.expertrealestatetips.net.

© 2008 Ilyce R. Glink and Samuel J. Tamkin

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