Home Buying in New York>Question Details

Djyayo2001, Home Buyer in Bensalem, PA

I currently have a potential bank to give my mortgage, for a short sale purchase. My question is if I were to switch to a different bank to loan me

Asked by Djyayo2001, Bensalem, PA Tue Nov 12, 2013

the money for the mortgage, will that affect me in any way shape or form.

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Answers

6
Djyayo2001,

If you have already been approved with the first bank but want to shop for the mortgage rate, you need to keep in mind that mortgage inquiry lowers your FICO score by 5 points. So you are better off limiting your "rate shopping" time to 14 days. This way you will have only one inquiry and all others will be ignored by the credit bureau.

In general, the answer to your question will depend on how far you are in the process with the first bank and what's your time frame. By switching the bank you basically have to start from scratch. Most documents have very short expiration time frame so if you want to change a bank, you may have to spend some time on getting additional paperwork.

Ultimately, you ABSOLUTELY NEED to find a mortgage professional you feel comfortable with. It makes all the difference in the world. I had so many cases when clients were denied by several banks, deals were about to fall through and buyers were devastated. And all it took is one mortgage specialist who could ask the right questions and put it all together to get the deal through.

I have some incredible professionals I work with in New York and if you need help with that, I can ask them for references. I'm sure they can recommend a strong expert in your area.

Sincerely,
Yulia
1 vote Thank Flag Link Tue Nov 12, 2013
It should not affect you, however if you are unsatisfied with your loan officer why not have a discussion, or express your concerns with his/her manager before making the switch...
1 vote Thank Flag Link Tue Nov 12, 2013
It depends. Guidelines vary from lender to lender, they are not all the same. Make sure you can be preapproved by the new lender. They new loan officer needs to look at your credit, debt, income, work history, tax returns, assets for starters. If they just give you a pre approval without verifying the above, be careful you could experience problems qualifying down the road.
0 votes Thank Flag Link Tue Nov 12, 2013
Well there are many different things involved in this question. If your credit is in good shape, and you're still waiting for short sale approval, then maybe you have time to shop around and the extra credit inquiry or two shouldn't have a huge impact. But, if your credit is borderline, or there have been significant changes to your credit, or if you have no time to shop around because the short sale has already been approved, then you might not have the luxury of shopping for other lenders.

It all really depends on your situation. I would love to have an opportunity to speak with you regarding the specifics of your situation so I can better advice you. I'm also interested in knowing why you're looking to switch lenders? Sometimes you can improve your situation and other times your making a lateral move. It all depends.

Feel free to call or email me anytime. Good luck!

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Tue Nov 12, 2013
I assume you have a good reason that will make a difference in your transaction.

I do not believe it should adversely effect your deal.
0 votes Thank Flag Link Tue Nov 12, 2013
If you are not satisfied with the bank or the mortgage banker you are working with, you have the choice to switch. You are not obligated to the first bank if, as you state, it is simply potential.

This suggests that you have merely spoken with a mortgage banker and he or she has indicated that you are likely to qualify for a loan, but you have made no signed commitment.

In Florida, customers are free to speak to as many loan originators as they wish without obligation, until such time as they choose to work with someone.

It is likely that is true in your area, too.

As for lending on a short sale, a property is just a property. The seller of the short sale will not care, nor will that seller know which bank you are using until it comes time for you to state that you have gotten a mortgage commitment.

However, since short sales often take several months to close, the initial mortgage commitment you get and the rate you discuss may be change by the time that short sale finally goes through.

Make sure the mortgage banker you ultimately choose to work with is aware that there is no definite closing date for your sale (if that is the case) and ask him or her to give you the longest possible rate lock.

Marc Jablon, the Jablon Team
Re/Max Complete Solutions
JablonTeam@gmail.com
561-213-6139
http://www.JablonTeam.com
0 votes Thank Flag Link Tue Nov 12, 2013
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