Almost ready to close

[ampy]

I had posted a few weeks ago about my frustrations with the lender I was using but it seems that my frustrations were just due to a misunderstanding and lack of communication and not due to anything wrong they were doing. I was basically under the impression that the lender was going to pay for closing when they were actually going to contribute and raise our interest rate.

We are expected to close on April 29. The lender reached out to me Friday for documentation regarding some large deposits and then let me know that the file would then be sent back to the underwriter for final approval. They are nervous as it is cutting it close for them to close.

I guess I am still trying to get comfortable with the fact that I am not going with the preferred lender which I've been told the incentives for doing so are 2 yrs paid HOA costs and closing paid except for prepaid items. The other incentive is 1.5% of price towards closing and owners title fees. If I were to change lenders now then I would be pushing back closing by a month. But when it comes down to keeping $8k in our pockets or not, I think it's worth it.

Does anyone have any advice?

[ShanetheMortgageMan]

It's a tough decision to make, since it sounds like you are close to the finish line with your current lender.  Are there any penalties the seller charges for not closing by 4/29?  Sometimes there is a "per diem" charge of a certain amount, so if that is $100/day for not closing on time and you close 30 days later that is $3k.  So check that part of the contract.

Then you also have to compare the fees & rate from each lender.  If they are roughly the same, then switching lenders and saving $8k sounds like it'd be better financially in the long run.  However, if the preferred lender has higher rates or is charging more fees for the same rate, then that needs to be factored in to the overall savings.

Then there are your own personal feelings about working with someone for a long time and then switching close to the end.

As far as closing on 4/29, have you received your initial Closing Disclosure yet?  You need to receive it no later than 4/26 in order to legally be allowed to close on 4/29.  A lot of lenders will not issue the initial Closing Disclosure until you get the clear to close, which the lender is still working on.

[ampy]

Re: Almost ready to close [ New ]

‎04-23-2016 06:25 PM

It's a tough decision to make, since it sounds like you are close to the finish line with your current lender.  Are there any penalties the seller charges for not closing by 4/29?  Sometimes there is a "per diem" charge of a certain amount, so if that is $100/day for not closing on time and you close 30 days later that is $3k.  So check that part of the contract.

Then you also have to compare the fees & rate from each lender.  If they are roughly the same, then switching lenders and saving $8k sounds like it'd be better financially in the long run.  However, if the preferred lender has higher rates or is charging more fees for the same rate, then that needs to be factored in to the overall savings.

Then there are your own personal feelings about working with someone for a long time and then switching close to the end.

As far as closing on 4/29, have you received your initial Closing Disclosure yet?  You need to receive it no later than 4/26 in order to legally be allowed to close on 4/29.  A lot of lenders will not issue the initial Closing Disclosure until you get the clear to close, which the lender is still working on.

Thank you for your response!

It certainly is. I don't think there are any penalties since we are building the house but that is a question I can definitely look into. I will look over the contract tonight and get in touch with my sales agent tomorrow.

In order to compare the fees & rates I would need the preferred lender to run our credit and I remember signing something the lender sent us about credit checks. I want to say it was something to the effect of we couldn't apply for new credit so I am not sure if this would count or not.

Yes, I would definitely feel bad about switching lenders close to the end when they worked with us for so long. That is also a piece I am struggling with.

I don't believe I've received an Initial Closing Disclosure. I've received other disclosures but not that one according to my files.

[ampy]

It's a tough decision to make, since it sounds like you are close to the finish line with your current lender.  Are there any penalties the seller charges for not closing by 4/29?  Sometimes there is a "per diem" charge of a certain amount, so if that is $100/day for not closing on time and you close 30 days later that is $3k.  So check that part of the contract.

Then you also have to compare the fees & rate from each lender.  If they are roughly the same, then switching lenders and saving $8k sounds like it'd be better financially in the long run.  However, if the preferred lender has higher rates or is charging more fees for the same rate, then that needs to be factored in to the overall savings.

Then there are your own personal feelings about working with someone for a long time and then switching close to the end.

As far as closing on 4/29, have you received your initial Closing Disclosure yet?  You need to receive it no later than 4/26 in order to legally be allowed to close on 4/29.  A lot of lenders will not issue the initial Closing Disclosure until you get the clear to close, which the lender is still working on.

Thank you for your response!

It certainly is. I don't think there are any penalties since we are building the house but that is a question I can definitely look into. I will look over the contract tonight and get in touch with my sales agent tomorrow.

In order to compare the fees & rates I would need the preferred lender to run our credit and I remember signing something the lender sent us about credit checks. I want to say it was something to the effect of we couldn't apply for new credit so I am not sure if this would count or not.

Yes, I would definitely feel bad about switching lenders close to the end when they worked with us for so long. That is also a piece I am struggling with.

I don't believe I've received an Initial Closing Disclosure. I've received other disclosures but not that one according to my files.