Hi.  I am closing on a house 8/21.  I have signed some papers with a mortgage company but I am not happy with the rates I am being given and I don't feel comfortable with the person I am dealing with.  I have not locked a rate.  Am I able to take ny business elsewhere without costing myself anything? 

Rob,

You can switch mortgage companies at any point in the process.  If you haven't given them any money upfront for the appraisal or to get the process started (which should raise red flags anyways), then you can feel comfortable going with somebody else.

Thanks Scott.  I was hoping you'd say that.  I have not paid them any money as of yet.  An FHA appraisal was done, would I be on the hook for that?

You might be getting too much advise from your friends and on the internet with teaser rates. The rate  is going to depend on your credit score and the amount of the loan. Talk to your loan originator before you move the loan.

Thanks Marge.  I have 800 credit score and the loan is for 230K in NJ.  It can't hurt to ask around as long as I'm comparing apples to apples, right?

Rob

You are absolutely right! You can move to any other mortgage company as well as if you have the appraiser's details you can use the same appraisal report with the new mortgage company without having to pay for it again. The appraiser has to just mark it to the attention of the new mortgage company. Please note that this is possible only because it is a FHA loan otherwise due to HVCC you cannot change lenders (if you do not want to pay for the appraisal again) once appraisal is done and there are very few lenders who would transfer the appraisal report to the new lender.

The rates for FHA loan are more or less same with all lenders. What is the rate been offered to you? And the closing cost?

Wish you luck.

Thanks very much for the detailed response Summer.  The rate that was offered to me today was 5.75.  I could have had 5.5 on Friday.  Perhaps I blew my chance.  All of these quote are paying zero point or origination fees.

Rob Hunglikeaton:

The rate that was offered to me today was 5.75.  I could have had 5.5 on Friday.  Perhaps I blew my chance.  All of these quote are paying zero point or origination fees.

Based on your closing date of 8/21, I'd say this is a pretty good deal.  You're talking about a 60 day lock and not paying any origination or points.  I would review the GFE with your Loan Officer, and once locked, ask for written confirmation.  In addition, consider paying a point and looking at the lower rate.  Typically if you stay in the same loan for at least 4-5 years, paying the point and getting the lower rate/payment, you will come out money ahead in the long term.  Best of luck to you!

Thanks Curt.  Does the 60 day lock get me a better or worse rate.  In other words, say it was only 15 days until closing, would I get a better or worse rate?

Simple answer = 60 days worse.  15 days = better. 

Is your LO talking to you about these issues?  Maybe you SHOULD switch lenders....I don't normally recommend that, but sheesh....  Go to the Directory, upperright hand side of this page, find a premium member in your state and give them a call.  We're all professionals, if you're getting an "amazing" deal from someone that doesn't know what they're talking about.....well, you're in for a disappointment. 

oh, and if you do decide to stick it out, I'd ask for written confirmation on any Lock-In that you do.  If they can't deliver that, I'd run.

No, he hasn't talked to me about 15 vs 60 day locks.  I get the feeling he is rushing me to lock in.  He could think he is looking out for my best interests, I don't know but I just can't shake the feeling that he has an ulterior motive.  Thanks again for your help and caring Curt.

Rob,

I just wanted to follow up on a previous post about your appraisal and what happens if you switch lenders.

"as well as if you have the appraiser's details you can use the same appraisal report with the new mortgage company without having to pay for it again."

While it's true that the rules of HVCC don't apply to an FHA appraisal, the mortgage company is actually the one who ordered the appraisal so it's in their name and they will probably not release it to be used for a loan at a different company.  You would have the cost of a new appraisal included in your closing costs.  The appraiser is not the one who makes the call on this, as the mortgage company is officially the customer since they ordered it and will be requested by the appraiser to pay for it.  The mortgage company may come after you for the cost of the appraisal, but that doesn't usually happen, but I thought you should be aware.

Scott,

 

Thanks for the clarification.  Next time I'll do more research before I sign anything.  My loan officer was recommended by my realtor (who is also my cousin) so I thought I was good.

 

Thanks,

Rob

If you have paid for the appraisal, and requested in writing that it be released to a different lender, the original lender should comply.  I don't have time to research www.hud.gov, but we have not had a problem getting this done.  Nobody does appraisals for free though.  If someone ordered an appraisal on your behalf - typically you give consent in your up front disclosures - you need to pay for it.

If it's an FHA loan than you can't get a new appraisal for 6 months and must use the one originally done. The lender must release it to you, however you must pay for it (if you haven't already).

marge mendenhall:

You might be getting too much advise from your friends and on the internet with teaser rates. The rate  is going to depend on your credit score and the amount of the loan. Talk to your loan originator before you move the loan.

Agreed, don't take what you see on advertisements and sites like BankRate as what you can actually get in terms of rate.  There are way to many variables in determining your actual rate, and some of these ads/sites don't include APR.  That being said, you can get walk away at any time if you don't think you are dealing with an honest mortgage professional.

Rob,

It looks like this mortgage broker is doing a fine job for you, quoting you a really good rate with no points or origination fee.  It doesn't look like he is really trying anything other than getting you locked so you get that great rate.  He/she is probably just rushing to make sure you get that rate before rates go up again. Just a thought!