Fire Your Mortgage Lender?!

4 Replies

Has anyone had a property under contract and through the process you realized your mortgage lender is below average in terms of customer service and responsiveness?

I’m a first time investor and I have a property under contract and through a now 4 month process (still haven’t closed) I realize my mortgage lender is not good.

I want to fire them and get a new team but I’m sooo close to closing… (though I think this every 2 weeks)

Has anyone ever fired a lender while having a property under contract?

Any stories/advice/encouragement would be greatly appreciated.

@Nic Starr Almost everyone has had issues with lenders. It is extremely common for loans to take much longer than anticipated. 

While I have never done what I am about to suggest, I wouldn't fire them, but I might apply to a second lender. This will double some costs but if the backup lender can be ready sooner, just drop the original loan.

i have done this with title companies which can also be a logjam. 

Originally posted by @Ned Carey :

@Nic Starr Almost everyone has had issues with lenders. It is extremely common for loans to take much longer than anticipated. 

While I have never done what I am about to suggest, I wouldn't fire them, but I might apply to a second lender. This will double some costs but if the backup lender can be ready sooner, just drop the original loan.

i have done this with title companies which can also be a logjam. 

 If OP is 4 months late, double apping isn't a crazy idea at all. The only cost doubled would be the 2nd appraisal fee. Everything else will only be 1x, whatever it is. Make sure the escrow officer knows what's up, that moving forward 2 entities will be requesting various paperwork from them, and why (that escrow officer has an incentive for it to close, too!).

If OP is 4 month slate b/c OP isn't qualified, is dragging their feet on paperwork, etc, then it will not accomplish anything. The 2nd appraisal fee is a built-in check against that, since OP wouldn't want to do that if they knew in their heart-of-hearts that that was the cause of the delay. 

Nic, suggest reading some online reviews, etc, when picking your backup plan loan originator. Having a dud be a backup for a dud wouldn't be super useful. 

I can't imagine what that's like.  I've never taken more than 44 days to close a loan and that one was a doozy!

I agree with the others though.  If it's taking that long, get a second running in parallel.  Sucks for a broker to get that far in and lose the loan, but its on them!

Cheers!