Financing in Irvine>Question Details

Ar, Home Buyer in Irvine, CA

Can i change my lender after i decided to work with builder's lender?

Asked by Ar, Irvine, CA Sat Dec 21, 2013

I am past the deadline to choose another lender. My home is about to close in 30 days. Is this too late to choose another lender. I am not happy with current lender's terms. I was wondering if i have the right to shop for another lender since i waived my right to choose one before the deadline

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I'm going to give you an answer you might not expect. If you have a loan approval, if you are within 30 days of close, and if your builder is going to make your life difficult if you attempt to switch, I'm going to advise you to bite the bullet, stay the course and get it done.

It may not be fun, and it may involve some cost, but you can always refinance later, and once you're in the house. But when I have a buyer in contract, the first priority is always to close. If you don't do that, your terms don't matter, now or in the future.

Your scenario is not uncommon and I wish I could tell every new contstruction buyer about your very experience in advance. But the playing field is set so that the builder's lender is often the path of least resistance. If the terms are not the best, that's the risk you ultimately take.

Let me know if I can help in any manner.

Rob Spinosa
1 vote Thank Flag Link Mon Dec 23, 2013
I believe you have answered your own question..."you want to change lenders after the deadline?" Unless there are terms that would allow this or a loop hole that would allow you to exit your agreement, you are likely stuck with this lender.

Taking this one step further, let's suppose you could elect to use another lender....would you be able to make these secondary arrangements and meet your closing deadline. Since you would be starting the process "anew" it's highly doubtful that your new lender would be able to complete their process in less than 30 days.

Changing lenders may not be the solution to your problems but n adjustment that only adds to your dilemma.

Good luck,

1 vote Thank Flag Link Sun Dec 22, 2013
Sure you can change lenders with 30 days left. There are many lenders with 21 days closings. You should always shop for the best rates and terms. I hate to say it but some builders do like to pad their profits by using their in-house source. This was a component discussed in detail by the CFPB to not get locked into home loans by home builders.

Check around and see what you get. have all your documents ready so it can go real smooth if you decide to change. If you are changing due to rates being higher when you signed the contract you may find equivalent rates at the other lenders.
0 votes Thank Flag Link Sun Jan 5, 2014
Yes, you may change lenders. Especially if there are builder incentives. You should actually see who will give you the best rates, any closing cost credit ect. Let them know that they are competing for your business.
0 votes Thank Flag Link Sun Dec 22, 2013
Many builders/developers insist that you use their lender and/or their title company as a requirement for purchase. For large developments it makes their lives easier.

Based on your rendition of the terms it sounds like you are stuck with what you chose. My question is why did you accept the terms to begin with.

Since I'm not an attorney and not privy to the terms of the contract I would suggest you get legal advice if you really want to change lender, but I would also evaluate the cost of the atty vs the terms before pulling the trigger on that.
0 votes Thank Flag Link Sun Dec 22, 2013
Read your contract carefully - Emily is correct. You can use any lender you want as long as you close by the date required. AND, any incentives or upgrades provided by the builder for using their lender will likely be taken away. If the builder is providing any incentives, such as upgrades, when you change lenders you may have to pay cash for those upgrades before you close. Also, make sure the rate and terms you are being promised by "your" lender are absolutely solid. It would be a shame to get to closing and find out using your lender was more expensive and you had to reimburse for incentives or pay for any upgrades.

Good luck!
0 votes Thank Flag Link Sun Dec 22, 2013
I don't think the builder should care too much, so long as you close on time, which is totally possible since you have 30 days left.

The only thing the builder won't do, is give you any incentives they may have been offering if you choose to use a different lender. Many home builders offer a certain amount of closing costs paid to you Or a guaranteed interest rate or certain Options, if you use their lender.

However, if they're not offering you any incentives at all to use their lender, then Yes, you could choose another lender.

Please call or text my trusted lender, Ryan Gale with JMJ Financial at 714-401-7282 or email at he is a mortgage broker, however they also fund loans in house & are able to be a bit more creative & competitive as they work with borrowers on a case by case basis & could very well, offer you better terms than the builders lender.

He's working the holiday time, just as I am, if you can shoot me an email directly or give me a call in the morning with your name/#, I can give him a heads up to contact you tomorrow.

If the home is ready, he could close the loan in under 30 days too. **I do not look back on this same Trulia posting for answers or replies after mine.

Emily S. Knell
562-430-3053 c
Realtor Since--- 1996
Realty ONE Group
BRE# 01211967
0 votes Thank Flag Link Sun Dec 22, 2013
Good evening AR,
You may use any Lender you chose as long as they close within your Escrow Timelines. We can close your Purchase Money Loan in 21 days or less. Please give me a call at your earliest convenience to discuss your Finance Request.

Best regards,

Darren Carlin
Loan Originator / Jr. Partner
CA BRE#01935124
Pacificwide Lending
5506 Sunol Blvd. Suite 200
Pleasanton, CA. 94566
Office: (925) 461-0500
Cell: (925) 872-0695
0 votes Thank Flag Link Sat Dec 21, 2013
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