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Switching lenders near the end of the process

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Anonymous
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Switching lenders near the end of the process

To say our lending process with Southwest Funding has been a pain in the backside is an understatement.

We put our offers in on May 8th. We had a pre-approval from Southwest Funding.

Long story short we got the ole' a Manual Underwriting from them. We have given them everything with the exception of blood and urine specimens. Showed 3 months of reserves and everything. Friday (the day the paperwork was to be sent to title company) the underwriter says they need proof we paid off the 3 collections (mind you we had given them the gift letter, and proof of payoff on all three collections)

So our realtor suggest we get a back up lender (she recommended one to us) we spoke with the new company and low and behold I believe we are going to switch. She already put out info through the DU and it came back approved and get this at 3.5% which is way better then the original lender (4.5%)

She asked us to send the w2, pay stubs, and all the normal stuff, but this is the kicker. She has went ahead and locked the rate and is telling me that she should have us funded/closed by July 3rd. They are going to use the inspection and appraisal from the original lender.

Wish us luck and I hope she isn't just being super optimistic. We have already had to file 2 extensions due to the previous lender
Message 1 of 16
15 REPLIES 15
Anonymous
Not applicable

Re: Switching lenders near the end of the process

Good luck! It sounds like everything should work out! We're in the same boat. We should find out today if we have to switch lenders or not. I was dreading the idea but your situation has given me some hope, lol.
Message 2 of 16
Anonymous
Not applicable

Re: Switching lenders near the end of the process

Switching lenders on our first home was a godsend. Better rates, better communication, quick close. Our realtor hooked us up with a broker and they even found us a grant at that time. They had to fight to get our FHA file away from 5/3rd but they got it all done. Don't let switching scare you, sometimes it can be for the best.
Message 3 of 16
Anonymous
Not applicable

Re: Switching lenders near the end of the process

Thank you both for the replies. So far everything seems much better with the new lender. I submitted all of my documents to the new lender (she is a senior loan officer with 24 years experience) vs the old company having a officer that has been doing this for only 2 years or so.

She said everything looks good and I did get an "approved" through the desktop underwriting. I did get a new locked interest rate of 3.5%

Here's to hoping everything goes through quickly. Our sellers have already done two extensions for us, so hopefully this extension from the 30th to the 3rd of July will be the last one
Message 4 of 16
Anonymous
Not applicable

Re: Switching lenders near the end of the process

I'm getting pretty darn close myself. I'm calling another lender in the morning and if no CD it might be bye bye bbva compass. 

 

Thanks for posting this.

Message 5 of 16
Spider07
Regular Contributor

Re: Switching lenders near the end of the process


@Anonymous wrote:
Thank you both for the replies. So far everything seems much better with the new lender. I submitted all of my documents to the new lender (she is a senior loan officer with 24 years experience) vs the old company having a officer that has been doing this for only 2 years or so.

She said everything looks good and I did get an "approved" through the desktop underwriting. I did get a new locked interest rate of 3.5%

Here's to hoping everything goes through quickly. Our sellers have already done two extensions for us, so hopefully this extension from the 30th to the 3rd of July will be the last one

is this lender just a local lender or National lender?  I want to have a back up plan incase my current lender doesn't cut the mustard when it comes time for me to lock.  Can you pm me the info, I am in Texas, not sure if your lender can write loans here or not. 

Message 6 of 16
Anonymous
Not applicable

Re: Switching lenders near the end of the process


@Spider07 wrote:

@Anonymous wrote:
Thank you both for the replies. So far everything seems much better with the new lender. I submitted all of my documents to the new lender (she is a senior loan officer with 24 years experience) vs the old company having a officer that has been doing this for only 2 years or so.

She said everything looks good and I did get an "approved" through the desktop underwriting. I did get a new locked interest rate of 3.5%

Here's to hoping everything goes through quickly. Our sellers have already done two extensions for us, so hopefully this extension from the 30th to the 3rd of July will be the last one

is this lender just a local lender or National lender?  I want to have a back up plan incase my current lender doesn't cut the mustard when it comes time for me to lock.  Can you pm me the info, I am in Texas, not sure if your lender can write loans here or not. 


Local Lender.

 

Our original lender was Southwest Funding which has a local branch but they are based out of Texas

The new lender is Oak Ridge Morgage Investors -> Local to the Knoxville, TN area

Message 7 of 16
MauiMan85297
Established Contributor

Re: Switching lenders near the end of the process

We changed lenders 30 days from close and it was the best decision as starter lender was horrible in communication and he was charging $1200 for lender fee (builders referral) and the new mortgage company (also builder referral) charged $1175 but gave back the $1175 for using them via builder at no cost to me.  Communication was phenomenal and closing was as smooth as a babies bottom- Moral of story: Don't hesitate to make a change!



Message 8 of 16
dragonfly66
Frequent Contributor

Re: Switching lenders near the end of the process


@MauiMan85297 wrote:

We changed lenders 30 days from close and it was the best decision as starter lender was horrible in communication and he was charging $1200 for lender fee (builders referral) and the new mortgage company (also builder referral) charged $1175 but gave back the $1175 for using them via builder at no cost to me.  Communication was phenomenal and closing was as smooth as a babies bottom- Moral of story: Don't hesitate to make a change!


^^^^This right here.  I'm considering doing the same thing if I don't get a lower rate than what DHI mortgage is quoting.

Current - FICO 3/2019: EX(753); EQ(763); TU(749)
Beginning - FICO 7/2014: EX(630); EQ(608); TU(581)
Credit: Wells Fargo Home Projects Charge Card ($7,800); Wells Fargo Home Rebate Visa ($4,000); Capital One Quicksilver ($10,000); Capital One Venture ($6,000); Discover it ($7,900); Macy's ($20,000); BrandsMart ($4,000); Banana Republic ($1,200); Lowes ($12,000); Amex Everyday ($30,000); Macy's Amex ($15,000); Amex Platinum (NPSL); Citi Diamond Preferred ($9,000); Chase Freedom ($9,000); Wells Fargo Outdoor Solutions ($10,000); SunTrust HELOC ($25,000)
Message 9 of 16
Anonymous
Not applicable

Re: Switching lenders near the end of the process

So far the new lender has been awesome. She just called me today and said she has everything she needs to get to the underwriter (except insurance proof) She is calling my insurance agency today to get the paperwork from them (already filled everything out with them yesterday) 

 

She told me she expects to close on July 6th, if everything goes as planned then she will be spot on with what she told me which was that she could close me in 8 business days after I swithced to them..

 

Timeline:

Offer accepted May 8th

Orginal closing date sceduled June 9th (missed due to appraisal not submitted in a timely manner by old lender)

Original lender had it extended to June 30th, on June 24th they tell me they are likely not going to be able to hit the deadline (I was told by the manager that the original processor had messed up and lost a lot of our paperwork) That he should be able to get it done first week of July

June 26th switched mortgage lenders (was told I could close in 8 business days, with a 3.5% interest rate vs 4.5% with original lender)

June 29th get call from new lender saying everything looks great, sending papers to underwriter to verify everything(Automated Approval) Should have my closing disclosure on Monday, and close on Thursday

 

The pain staking process I went through with the original lender still sets in the back of my head and i am waiting on something to come up and delay everything, hopefully not because I am super excited now about becoming a first time home buyer.

Message 10 of 16
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