Closing problem...

[MonsterMad28]

I had two lenders processing my home loan because I didn't know I couldn't. I was just going to take the best rate when they were done. It's a FHA loan... How can this hurt me or hold up the closing? Can any of them hold me to their loans since the process was started? House went under contract last monday. The one that I don't want to work with has taken money for appraisal but has not had one done.

[StartingOver10]

The problem that you will face is that FHA has a case number that will be assigned and I am pretty sure only one lender can use the case number at a time. You will need to choose between your lenders right away. That case number is specific to the property and the lender; so if lender A and lender B have your file and if lender B has ordered the case number but you end up using the lender A, then lender A will have to request that the case number be reassigned to them.  It could hold up your loan for the number of days it takes to transfer the case number and transfer the appraisal if the appraisal is already done by the lender you did not choose.

Here is a boring link to the case number procedure if you want to see a little bit how it works (lol....):https://entp.hud.gov/sfohlp/f17cnaprhlp.html

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@MonsterMad28 wrote:

I had two lenders processing my home loan because I didn't know I couldn't. I was just going to take the best rate when they were done. It's a FHA loan... How can this hurt me or hold up the closing? Can any of them hold me to their loans since the process was started? House went under contract last monday. The one that I don't want to work with has taken money for appraisal but has not had one done.

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[MonsterMad28]

Thank you for that info, The Lender that I don't want to work with rushed the documents when they found out I was working with someone else and even had the wrong address for the home we were buying on the paperwork. While Lender #2 told us about the problem you just mentioned and to do what was best for our family (in terms of rate of the loan). The first lender is bigger and can give us a better deal but I just dont like how they do business.

[Anonymous]

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@MonsterMad28 wrote:

Thank you for that info, The Lender that I don't want to work with rushed the documents when they found out I was working with someone else and even had the wrong address for the home we were buying on the paperwork. While Lender #2 told us about the problem you just mentioned and to do what was best for our family (in terms of rate of the loan). The first lender is bigger and can give us a better deal but I just dont like how they do business.

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The irony....

[Anonymous]

I have the opposite experience from you. GF had her Lender A from work, while I picked mine from friends referral, Lender B. 

A - 3.75, pmi, somewhat high closing cost even with discounts. Spoke with him for a week and tell him I can't deal with numbers over the phone and for him to email me instead. Just wanted something to be written down for my own record. Also asked him may times to see if he could get us a better rate but he said that's the best.

B. Provided many options and worked with us on everything with very good communications. (3.5, pmi, closing) (3.75, pmi, no closing). I also used another referral and it was the same rate, pmi, closing. Don't know what A was doing.

Provided A with the documents from B to see if he could beat it and he got somewhat agressive. Yesterday A got back to use stating if he could get us 3.625 with a $500 discounts, would we go with him. Unfortunately I already locked in with B in the morning and told my gf to contact A. All he said was "Good Luck".

[MonsterMad28]

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@Anonymous wrote:

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The irony....

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There is a difference in making a rookie mistake and then having someone try to take advantage of said mistake. One lender rushed documents out to force our decision, while the other told us what was going to happen and to do what was best for our family.  I was able to get rid of the lender I didn't want & stick with one that had been very helpful through out the process.