Switched Lenders

[jd403]

It has been one heck of a last few hours.  Back at the end of January, I had signed a contract on a Spec home being built and got a great deal.  The next day I started shopping and one lender at that time stood out.  I felt comfortable and proceeded with them.  i filled out an application on Feb 1.  I was asked for a bunch of stuff and right away had discovered that I had not filed my 2014 taxes.  I was told, don't panic we'll put a condition and get you a letter of commitment by Feb 5.  I overnighted the taxes on Feb 8 and the IRS received them.  Feb 11 comes around and the sales agent for the builder had not received the commitment letter yet.  I call up the LO and am told that there is a freeze on my application and she needs to look at it but don't worry because everything else is in order.

Feb 14 comes and I'm told that to play safe for my 2014 taxes to process, we need to change the close date to April 8 and that according to the sales agent, a $3000 price increase will be needed if I don't close by March 31st. Still no commitment letter.  I chase for another week which brings us today.

Being home sick today from work, I got to thinking that this just felt weird and I wasn't comfortable.  I called and spoke to the other preferred lender of the builder and filled out a pre-qual.  20 minutes later, he had me a rate of 3.375% for 30yr/FHA with a mid score of 688.  Original lender had me 3.48% with a mid score of 662.  Here is the other inetersting thing, since I am a base salary employee with a yearly bonus, my tax transcripts are not needed. Only my W2's,  I gave him copies of my 2013, 2014 and 2015 W2's along with all of the other required documents.  He sees zero issue with closing by March 31st and unlike my original lender is adding $2k towards closing on top of the $3k from the builder.  

Ironically, the original LO just emailed me a pre-qual letter about an hour ago and said I'll have a full committment letter by Thursday.  This was in response to me texting her earlier and telling her to not go ahead with appraisal and I'd be in touch tomorrow.

[Ragelog]

Good luck with the switch I hope it works out you do have over a month until the end of March so you should be good. I am too late in the game to try that I hope everything goes to plan. My agent is trying to get the close moved up to the 4th. Great rate by the way I was happy with my 3.5 so 3.375 is even better.

[ezdriver]

Nice move. All the best with the closing.

[jd403]

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@ezdriver wrote:

Nice move. All the best with the closing.

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Thanks!  It was just a gut feeling that I had yesterday and I feel much better about it.  Now this morning, I've had 8 texts and 2 emails from the original lender looking to do anything and everything.  Too little too late.  Something didn't seem right.