Changing lenders 2 weeks before closing?

[David Grado]

I decided to go with my agent's "recommended" lender and didn't think anything of it as the numbers seemed within reason. I get an email about 1 week ago (3 weeks from closing) from a large bank asking if I needed a quote and I said yes the quote from the bank ended up being 5k cheaper in cash to close for nearly identical terms and P&I. I did this without informing my agent as I assumed it was just a quote well long story short he was very surprised and concerned and urged me to decide within 24 of who we will move forward with. He is concerned that they will not be able to close on time and I will lose my earnest money and be out of a great deal and also kicking the lender out of his commission. The large bank assures me they will be able to close on time as they are already very far along and can simply get the documents transferred. I am happy to supply numbers if that will clarify and allow for an easier decision.

The bank is Chase if that makes anything worse/better

[Wayne Brooks]

@David Grado Okay, so you got a quote that seems better. Unless you actually submitted an application along with tax returns and all the other doc.s…..they can’t be “far along”…underwriting has not started. They’ll also need to order their own appraisal.  Big banks are Always the slowest. I see No way they can close in 2 weeks.

[Erik Estrada]

Can you extend the close of escrow? I highly doubt Chase bank will be able to close in 2 weeks. From my experience big banks take their sweet time. It's all for you to get In the door so you have no choice but to use them. 

I would recommend working with a loan officer that can perform and has a proven track record. If your agent is recommending them, chances are that they have successfully closed on time.  I've seen this too many times where clients rate shop and end up falling out of escrow. 

[David Grado]

Both lenders have access to exactly the same documents as I've literally forwarded every document prior as well as new documents requested. I was told they would be able to transfer the appraisal so as to save on cost. I can ask the sellers if they are willing to extend but from a prior conversation they have arrangements they need to keep. Chase did make me pay a 500$ earnest fee so maybe you are right : (. What truly boggles my mind is how is someone supposed to shop around for lenders if quotes aren't reliable and if "loan estimates" which are can't be started until going under contract add to that each lender requires their OWN appraisal to get that far. Also at what point do you play hard ball knowing the seller has made arrangements and a small extension window would keep them from being in a very bad situation if I where to back out?

[Dave Skow]

@David Grado- your agent is correct    ....fyi - the first lender  will likely not be  willing/ able to transfer any  date to lender #2 ....you might ask  lender  #1  if they can  improve their  pricing  ......when lender #1 locked  the  pricing for you - did you  review and  approve them  to do this ?  If so - keep with lender #1 

[Erik Estrada]

Quote from @David Grado:

Both lenders have access to exactly the same documents as I've literally forwarded every document prior as well as new documents requested. I was told they would be able to transfer the appraisal so as to save on cost. I can ask the sellers if they are willing to extend but from a prior conversation they have arrangements they need to keep. Chase did make me pay a 500$ earnest fee so maybe you are right : (. What truly boggles my mind is how is someone supposed to shop around for lenders if quotes aren't reliable and if "loan estimates" which are can't be started until going under contract add to that each lender requires their OWN appraisal to get that far. Also at what point do you play hard ball knowing the seller has made arrangements and a small extension window would keep them from being in a very bad situation if I where to back out?

 Keep in mind that banks have different underwriting guidelines. A lot of big banks like chase banks have overlays that could make it harder for you to get final approval for the loan. 

I think what most shoppers overlook is lender performance. A lender can promise the moon and not be able to close the loan. 

I would recommend working with a mortgage broker. You get best of both worlds. Low rate and performance. 

[Jack Tulloch]

Hey David - I agree with Dave. I would not be confident in your original lender being able to transfer over everything to the other lender. I think asking if the original lender can improve their terms is your best bet.

[Andres Saias]

Hello David, 

I agree with my colleagues, if the deal is time sensitive stick with your current lender. Chase might take longer than promised as banks aren't very flexible with their guidelines. Erik also makes a good point when suggesting a mortgage broker, it will make your closing cost a little higher because of his commission but he'll get you what you need whether that be lower rates or faster loan approval. 

[Stephanie P.]

Quote from @David Grado:

I decided to go with my agent's "recommended" lender and didn't think anything of it as the numbers seemed within reason. I get an email about 1 week ago (3 weeks from closing) from a large bank asking if I needed a quote and I said yes the quote from the bank ended up being 5k cheaper in cash to close for nearly identical terms and P&I. I did this without informing my agent as I assumed it was just a quote well long story short he was very surprised and concerned and urged me to decide within 24 of who we will move forward with. He is concerned that they will not be able to close on time and I will lose my earnest money and be out of a great deal and also kicking the lender out of his commission. The large bank assures me they will be able to close on time as they are already very far along and can simply get the documents transferred. I am happy to supply numbers if that will clarify and allow for an easier decision.

The bank is Chase if that makes anything worse/better

 Curiosity is getting the better of me.

Which lender did you go with and were you able to transfer the appraisal to Chase?

[Zach Wain]

how did everything end up?  We need some closure

[Zach Edelman]

Just comes down to how much trust you have in the new guy. Also, how did this end up transpiring?

[Peter Mckernan]

Quote from @David Grado:

I decided to go with my agent's "recommended" lender and didn't think anything of it as the numbers seemed within reason. I get an email about 1 week ago (3 weeks from closing) from a large bank asking if I needed a quote and I said yes the quote from the bank ended up being 5k cheaper in cash to close for nearly identical terms and P&I. I did this without informing my agent as I assumed it was just a quote well long story short he was very surprised and concerned and urged me to decide within 24 of who we will move forward with. He is concerned that they will not be able to close on time and I will lose my earnest money and be out of a great deal and also kicking the lender out of his commission. The large bank assures me they will be able to close on time as they are already very far along and can simply get the documents transferred. I am happy to supply numbers if that will clarify and allow for an easier decision.

The bank is Chase if that makes anything worse/better

 I am curious how this ended up? Did Chase make it happen, I have had this happen to two of my transactions in the last 8 months. The first situation the lender giving the better rate just was flat-out lying about the rate he could give and did a bait and switch, and once the borrower knew the lender would not release the appraisal, which the borrower (my client) had to pay for another appraisal, but was able to go with a new lender (the OG one that gave him a quote when we started looking). The second example, the lender did give a better quote with a little less in costs for getting the loan on the closing costs/points, and they got everything done by the time we closed. 

It can put your EMD at risk if you try this deep into escrow with no safety net in place like contingencies.

[Dave Skow]

@David Grado- thanks  1)  one lender  will likely  not " transfer "  anything to the other lender  2) if the appraisal is done - go with whatever lender  has  completed the  appraisal at this point  3) the 2nd lender  ( chase ) sounds like they may have  purchased a  trigger lead informing them you were getting a home loan and took the opportunity to  try  swooping in and stealing the loan . if this is the case - this practice  isnt  a very good way to do business and  most professionals are  working to  make this stop  4) if you use  chase - they arent known  for being  speedy or easy to communicate with ..make sure the seller is  able and  willing to  extend the closing  asap   jsut in case you need  extra time