cancel
Showing results for 
Search instead for 
Did you mean: 

Less than 30 days to close: Is it risky to change lenders at this point?

peter1974
Regular Contributor

Less than 30 days to close: Is it risky to change lenders at this point?

We close on a new construction home in less than 30 days. We are already rate locked with the builder's in-house lending broker.

 

Prior to signing the contract for this new house, we were looking at existing homes at the beginning of the year and dealing with another mortgage broker. That broker has come to us and given a slightly better quote than the builder's broker.

 

Is it worth the hassle? We are already nervous enough about any changes in the final stretch but also feel silly walking away from saving money.

4 REPLIES 4
Jusniq76
Regular Contributor

Re: Less than 30 days to close: Is it risky to change lenders at this point?


@peter1974 wrote:

We close on a new construction home in less than 30 days. We are already rate locked with the builder's in-house lending broker.

 

Prior to signing the contract for this new house, we were looking at existing homes at the beginning of the year and dealing with another mortgage broker. That broker has come to us and given a slightly better quote than the builder's broker.

 

Is it worth the hassle? We are already nervous enough about any changes in the final stretch but also feel silly walking away from saving money.


Whew that's a tough one. Has the builders lender approved you totally or just conditional? Are they giving incentives that you may lose if you don't go with them. It is a risk of starting over which is what you will be doing and hoping the new lender can perform. Personally I would not under I got a denial from builders lender. Consider how long you plan on staying in that home and is the difference really worth it.

Message 2 of 5
peter1974
Regular Contributor

Re: Less than 30 days to close: Is it risky to change lenders at this point?


@Jusniq76 wrote:

@peter1974 wrote:

We close on a new construction home in less than 30 days. We are already rate locked with the builder's in-house lending broker.

 

Prior to signing the contract for this new house, we were looking at existing homes at the beginning of the year and dealing with another mortgage broker. That broker has come to us and given a slightly better quote than the builder's broker.

 

Is it worth the hassle? We are already nervous enough about any changes in the final stretch but also feel silly walking away from saving money.


Whew that's a tough one. Has the builders lender approved you totally or just conditional? Are they giving incentives that you may lose if you don't go with them. It is a risk of starting over which is what you will be doing and hoping the new lender can perform. Personally I would not under I got a denial from builders lender. Consider how long you plan on staying in that home and is the difference really worth it.


We are approved with the builder's lender and we are getting incentives for going with them. The competing broker is making up for that by not charging some loan fees and not charging points for their rate.

 

We do plan on being in the home awhile.

Message 3 of 5
CreditOnTheRise1
New Contributor

Re: Less than 30 days to close: Is it risky to change lenders at this point?


@peter1974 wrote:

We close on a new construction home in less than 30 days. We are already rate locked with the builder's in-house lending broker.

 

Prior to signing the contract for this new house, we were looking at existing homes at the beginning of the year and dealing with another mortgage broker. That broker has come to us and given a slightly better quote than the builder's broker.

 

Is it worth the hassle? We are already nervous enough about any changes in the final stretch but also feel silly walking away from saving money.


Check your contract. My current contract on a new home has an outside lender addendum. It stated that I agreed to NOT change lenders within 30 days of scheduled closing and if I did then the buyer had the option to keep my earnest money and cancel the contract. I don't know the likelihood of that happening in your situation, but it's a good time to read over the fine print in the contract before making a decision. 

Message 4 of 5
MauiMan85209
Established Contributor

Re: Less than 30 days to close: Is it risky to change lenders at this point?

Can he guarantee that your loan will close in under 30 days- Nope, that's up to his processing team then the Underwriters and then how fast you get back documents they requested.  Is everything in-house or do they process and someone else underwrites?  It's in your contract that if you don't take posssesion of the home when the builder states it's ready you can eat up any small savings quickly- my new build is $300 per day for late delivery.

" EX 718 EQ 730 TU 737 MMS 742"
Message 5 of 5
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.