Ever had a lender change your terms at the last minute?

Question

Before committing to a financing offer, three checks are worth doing:

1. Check the company's reputation - reviews, online presence, and how they've handled problems.

2. Ask for an itemized breakdown in writing, not just a rate and a monthly payment.

3. Ask what licensing requirements apply to your deal.

If terms do change late, ask what specifically triggered it and get the new terms in writing before agreeing to anything.

Has this happened to you? How did you handle it?

Chris Seveney · Answer

Hasn't happened to me. What has happened is, when we were doing correspondent lending and we were originating some loans, we would get to the finish line. The end buyer would turn around and pull the plug at the last second and would make us look bad because they either would not buy the loan or wanted the terms changed.

Muyees Ayilara · Answer

Erik, this is a great checklist.

From the lending side, I will add this: always get the full term sheet in writing before you pay for appraisal or lock in closing. Rate means nothing without points, fees, prepay, and draw schedule. If terms change late, ask what changed - appraisal, credit, property condition - and get the new terms in writing. If a lender cannot explain it clearly, walk away.

Yes, it has happened to borrowers I work with. The ones who had everything in writing were able to push back or switch lenders in time.

Erik Estrada · Answer

Yup I see this too from time to time. Especially on the niche financing that requires multiple exceptions, appraisal revisions/transfers, unique properties or a bunch of LOEs.

Ever had a lender change your terms at the last minute?

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