Financing in 60622>Question Details

Jennifer Sum…, Home Buyer in Greenville, NC

Halfway through closing, can I change lenders?

Asked by Jennifer Sumerlin, Greenville, NC Wed Sep 4, 2013

We were told we could get a USDA loan for the house we are buying. It has been over a month since we started this and it took 3 weeks for the appraisal to be done. Now our lender is telling us that USDA will not cover the value of the pool at the house, and we will have to cover that amount at closing. He now wants to put us in a FHA loan, which will increase our mortgage payment and have a 3.5% down payment. He said we could get some down payment assistance, but we will still have to come up with some of it. When shopping for loans, we had a better FHA option through my personal bank, and we only went with this lender for the USDA loan. Can I transfer all of my info to the mortgage broker for my bank to get the better loan? Will our closing get push back?

0 votes Share Flag Financing in 60622

Help the community by answering this question:


You do have options:

Stay with your current lender - pay for the pool at closing - be happy you can close on time

Try to renegotiate deal with seller and have them cover for the pool at closing

Speak to a new lender and get a realistic time frame as to how fast they can close and what terms they will provide to you.

Keep us posted as to what you end up doing.
1 vote Thank Flag Link Wed Sep 4, 2013
Hello Jennifer
You do have the right to switch lenders - I would speak with your bank to see if they would still be able to meet the closing date. If not and you need someone that can offer you the best rate and the quickest turn time then please give me a call. I can close you in 7 days and I will be able to offer you the lowest rate and fees
Sam Sharp
Senior VP of Mortgage Lending
Guaranteed Rate
773 290 0455
1 vote Thank Flag Link Wed Sep 4, 2013
Sam will get you closed in 7 days and switch you to FHA!
Flag Wed Sep 4, 2013
Most Likely you will push back the closing! I would suggest to call your Attorney to see how much time you have for closing and see if he can get an extension in case you need more time if you change the lender! Good Luck!
0 votes Thank Flag Link Mon Nov 18, 2013
Yes, speak with another lender to get a realistic closing time line, including the appraisal. Some lenders will accept another lenders appraisals thus saving some time and money.

The key issue is if the closing date gets pushed back will the sellers be ok with that, this is what you should discuss with the attorney.

Good luck!
0 votes Thank Flag Link Sat Sep 7, 2013
Only your attorney can answer that question. You do not give enough info for anyone else to give a proper answer
0 votes Thank Flag Link Wed Sep 4, 2013

It's unfortunate you're going through this nightmare. In the eight years of being in the business and have personally closed thousands of purchase loans, I cannot tell you how many times i've heard this story over and over again.

I would definitely change lenders. There are plenty reputable lenders that will get the job done.

Unfortunately, there are lenders that employ unexperienced part timers that have no business being in this business.

If you want an honest opinion and the best programs/rates in the market, call me today!

I will get your loan done in 7 days. We're licensed in all 50 states and located in Chicago

Alexander Romo
The Federal Savings Bank
Senior Vice President - Mortgage Lending
0 votes Thank Flag Link Wed Sep 4, 2013
yes you can switch with seller approval. It will push everything back as you must start all over. Switching now may not help you that much. Rates are going up so you may get a worse rate now than 3 weeks ago. Based on info you have given, your current lender sounds slow at best. Look into switching, talk to your bank etc. If they can do better and quicker, go with it. IN my experience, my mortgage broker is lightning quick, way faster than any bank. I would have known this in one week and already had a solution. If you want my lender, please email me.
good luck
0 votes Thank Flag Link Wed Sep 4, 2013
I would check 1st on the deadlines with your attorney. A new lender usually means more time to close and will need to be agreed upon by all parties to the transaction
0 votes Thank Flag Link Wed Sep 4, 2013
Yes, this may push back the closing date. The title insurance and other paperwork will need minor changes for a new lender. New appraisal will have to be done by the new bank. If you do not make the deadline on the purchase contract, you may have to pay to extend the closing date.

You may be better off just paying for the pool difference out of pocket.
0 votes Thank Flag Link Wed Sep 4, 2013
I will ask to thevseller to cover the value of the pool first and explain the situation you may get lucky
0 votes Thank Flag Link Wed Sep 4, 2013

I am sorry to hear the position you are in. You are right over the course of the loan with FHA you may be paying more over the life of the loan because of the way FHA handles PMI, My suggestion is to contact Sam Sharp below. I always recommend my clients go with the lender at Guaranteed late because of their expertise and ability to get loans completed in a timely manner.

Best of luck,.
0 votes Thank Flag Link Wed Sep 4, 2013
It would be pushed back because you would be starting over.

You can switch, but you must ask the seller if this is ok.
0 votes Thank Flag Link Wed Sep 4, 2013
It would be possible if the seller will grant you an extension. You will most likely be starting from scratch (minus maybe a week, because you have all your paperwork together). The bank still has to start from the beginning.
0 votes Thank Flag Link Wed Sep 4, 2013

This is a tough question to answer however it all depends on how far along you are in the loan. Most likely it wouldn't be an issue if the seller agrees to give you an extension.

Sohail A. Salahuddin | Founder and Team Leader

Innovative Property Consultants Group | Sales and Leasing

Jameson Sotheby’s International Realty

425 W. North Ave. | Chicago, IL 60610 

O: 312.335.3230 | C: 312.437.7799 | F: 847.805.6030

"Extraordinary Service For Extraordinary Lives"
0 votes Thank Flag Link Wed Sep 4, 2013
It will depend if a fha number as been assigned yet? You should have your buyer agent guide you. AG pools have no value and IG Pools do not have much value so it is strange they added that much to affect your purchase. When you change types of loans in can start the process over and delay the closing. Speak to your bank as well for some advice as to what they can and cant do. Interest rate shave gone up the last month.
0 votes Thank Flag Link Wed Sep 4, 2013
I can help. Call me today!
Alexander Romo
The Federal Savings Bank
Senior Vice President
0 votes Thank Flag Link Wed Sep 4, 2013
This is a question your agent should respond to or your loan official.
How far into the process you are, the terms and conditions of the purchase agreement, the speed at which the second lender can close and the cooperation of the home owner are all issues strangers on the internet can not assess. Call your agent. You will be AMAZED at what can be done, but don't waste time trolling for opinions from those, like myself, who simply have no access to crucial information. Your agent knows what to ask of the second lender and will be able to assess the consequences of failure of lener two to perform.

It would be helpful to other buyers if you were to identify the lender who allowed you to get into this mess.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Grou[
Palm Harbor, FL

Serious people call.
Really serious people need reliable, comprehensive data.
0 votes Thank Flag Link Wed Sep 4, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Home > Illinois > Cook County > Chicago > 60622 > Financing in 60622 > Question
Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer