How to do price match between 2 LENDERS

[Vu Le]

Borrower currently goes with LENDER A, but LENDER A ends up with very high interest rate and fee.

To do price match, I would like to ask whether I need to show LENDER A the lower rate & better fee from LENDER B's rate engine on their portal? 

or if LENDER B's approval and CTC are required to match the price?

and is it legal if LO submit one file to 2 different lenders at the same time?

[Devin Peterson]

Quote from @Vu Le:

Borrower currently goes with LENDER A, but LENDER A ends up with very high interest rate and fee.

To do price match, I would like to ask whether I need to show LENDER A the lower rate & better fee from LENDER B's rate engine on their portal? 

or if LENDER B's approval and CTC are required to match the price?

and is it legal if LO submit one file to 2 different lenders at the same time?

Hi Vu,

First off - Local to you here in St. pete. Would love to connect. 

Secondly, NEVER run two files at once with two different lenders. It will cause mass confusion all around and make more work for all parties. If you are shopping lenders, do all of your comparisons and discussions first. Do not go back and forth in the process and string two lenders along at once. 

Last, I am confused what you mean by show lender B CTC and approval to match the price. You are working with a broker - OK, Yes, they can technically have two files running at the same time but shouldn’t do that in the wholesale side again because it’s just out of respect, and two it sounds like this may be a float vs lock situation? Just remember, if your broker locked you in for a rate. You are locked in for that days pricing not just the rate. There is no final “price match” you can get generally until the closing date is established, rate is locked, and all fees are balanced. By that time you might as well stick with who gave you the CTC. Hope that helps! Good luck!