Financing in Lenexa>Question Details

Annie, Home Buyer in Lenexa, KS

We are talking to several lenders. When are we obligated to one lender?

Asked by Annie, Lenexa, KS Fri May 14, 2010

One lender has done the credit report and appraisal and locked in rate (30 day). We paid for the credit check and appr. Other lenders have lower rates - are obligated to work with the first lender?

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Hello Annie,

I always recommend starting with your local bank. They typically will be the lowest rate offered to you in comparison to a large lender, and especially compared to a mortgage broker (middle man) that is going to charge you additional points (fee), to complete the loan transaction for you.

Jane La Trace
0 votes Thank Flag Link Fri May 14, 2010
Annie, to answer you question; you are not fully obligated to go with a certain lender until you sign and close. You could get to the closing table and determine that it is not the deal that you asked for and refuse to close.

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David Van Noy Jr.
0 votes Thank Flag Link Fri May 14, 2010
Annie you should always be with a local and trusted mortgage company, they can pull rates and eterms from several diferent lenders and only pulls your credit once while shopping your loan to different lenders to get quotes on your behalf. At this point you may not be tied in, but you have spent money already, go to your current loan officer and ask them to match it. Be careful becuase loans are not all about rate, your closing costs should be consdered as well, how many points and any charges that company is charging like processing, review, currier etc. Compare vereything form rate to cost as some offer lower rates but add teh costs in the rear so you could pay a lower rate but more in closing costs. good luck with your loan
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0 votes Thank Flag Link Fri May 14, 2010
Not necessarily, but do be careful how many times you have your credit run as it show up as a "ding" on your credit rating and can affect your eligibility for a mortgage.

Go back to the first lender and ask them to see if they can compete with the other offer. Be sure all of the other fees are the same, they can slide a lot more in than just the percentage rate.
0 votes Thank Flag Link Fri May 14, 2010
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