Bank originating loan is the original mortgage lender.

4 Replies

Only just joined and have a burning question (more to follow I'm sure) - So I went for loan on a property which I have under contract (my first) & I found out that this bank I'm applying to is the original loaner on that property. Coincidence, but is there any advantage to that bank being the my lender, would I get fees reduced or is there some easier less costly 'transfer' they can do since they already service that property? My agent found the details online & doesn't think it's been sold off. Does the bank even have to mention it? the application's been with them for a few weeks - they never said or offered anything?

Good question, Jim. Every bank is different so I would first go to the bank and ask how they would handle that situation. I used to underwrite loans at a bank and we would still charge the same amount of fees for the origination of a new loan each time. Sometimes, if it’s a smaller community bank, relationships can go along way in making for more favorable terms of your loan.

Thanks @Owen Schwaegerle

Greatly appreciate the reply, as this is a multifamily couldn't I get a break on survey, environmental report, possibly transfer same insurance into place etc...

Is it even possible to negotiate a loan assumption or am I stretching? 

Definitely worth asking the loan officer at the nearest branch. Walk in today and see what they have to say. It would be interesting to hear feedback on how that goes

It has no bearing or relevance whatsoever. Processing your new loan is exactly the same, no savings or shortcuts.

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