Changing lender when under contract

Asked by siaj_nad, Fremont, CA Thu Mar 20, 2014

Wondering if it is possible to change lender when under contract. Offers been accepted with contingency, its been a week since then, lender has not even scheduled the appraisal. its been 3 days since ordering the appraisal. Seller and sellers agent is being anxious and impatient. I have signed the mortgage application already. I am not getting happy feeling about all this. I could be wrong, but 3 days and no explanation is unacceptable. I do not have any clue if the loan application has gone to underwriting yet ?? I do have backup lenders but do not want to panic and make things worse.

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, ,
Mon Mar 24, 2014
Well it definitely sounds like you aren't getting good communication from your loan officer or this "associate". The associate may be feeling embarrassed (for the other loan officer) and didn't want to get involved/"throw them under the bus" so they just sent you a simple reply. You are correct, if I order an appraisal today (early enough in the day) usually the appraiser reaches out the same day to make an attempt to schedule the inspection. The good news is the appraisal inspection is scheduled for tomorrow, and hopefully the appraiser will be quick to complete the report afterwards (normal is 48 hours after inspection, but I've seen many be completed the day after inspection). Hope that the rest of the process goes smoothly for you. Let us know if you have any questions after you receive your conditional loan approval.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
1 vote
, ,
Sat Mar 22, 2014
Hi Siaj_nad,

I would not jump to change lenders at this point. US Bank is a pretty good lender.

You have to acknowledge receipt of the lender's disclosures before an appraisal can be ordered, if the lender is planning to have you pay for the appraisal upfront. The lender has to receive an estimated closing statement or fees worksheet from the escrow officer in order to prepare an accurate Good Faith Estimate for you. It is not uncommon for the escrow officer to take 24-48 hours to deliver that information to the lender.

I would contact your loan representative at US Bank and ask for a status update and confirm that they will be able to meet the timeframes specified in your purchase agreement.

Best regards,

Elva A. Wormley
Mortgage Consultant
Office (408) 615-8500
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
1 vote
Robert Spino…, Mortgage Broker Or Lender, Mill Valley, CA
Sat Mar 22, 2014
Siaj_nad,

My first suggestion is to stick with your current lender. I will support what Shane says below. Focus your energy in the next couple of days on determining your point of contact --- the individual who is responsible and accountable.

It doesn't matter if you go with a direct lender or a small broker. What matters is that someone --- a real person --- is looking out for you. If you cannot locate this person in the next couple of business days, then switch. If someone steps up, give them your best coooperation.

Good luck and let us know if we can assist.

Rob Spinosa
rspinosa@rpm-mtg.com
1 vote
, ,
Fri Mar 21, 2014
Over the weekend I'd recommend you carefully craft an email to your loan officer and explain your concerns of meeting the appraisal & financing deadline (which here in CA is commonly 17 days from acceptance), and that you feel if things do not speed up you will not be able to perform as your contract states. US Bank actually has pretty good service, so it is a bit odd that they aren't communicating with you regarding the appraisal process (i.e. inspection has been set for XX/XX/XXXX date & time, your loan has been submitted to underwriting and we expect to hear within 48 hours, etc.). I'd let them know you are disappointed and really need a guarantee that the rest of the process will speed up and that you need an as-precise-as-possible timeline so you can let your agent & the listing agent know what to expect from this point forward. That will help the agents understand the rest of the process and that closing on time is still probable.

Any lender out there should be happy to be a backup lender (including me) just in case US Bank isn't able to meet the deadlines, but I have a feeling that as long as there is clear communication between your loan officer and your own real estate agent things will go smoothly. Communication between all parties is super important on a purchase transaction. Keep us posted on how things go.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
1 vote
, ,
Fri Mar 21, 2014
Hello, I would want to know what the remaining time frames are per your sales contract before advising you on a course of action here. If you have enough time to switch, possibly. If not you need to have a discussion with both realtors and involve a new lender in the discussion.

I am available to help you at your convenience if you wish.

I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

http://www.loansfromrob.com/quote/
1 vote
, ,
Fri Mar 21, 2014
Yikes.
If you are working with the 'least expensive' lender...then you may be receiving the 'least expensive' service.
You have a 'perform by' date in your contract. Your lender should have reviewed the contract and recognized the importance of the deadlines.
If this lender is a broker, you may be waiting for the actual lender to receive the loan package before they order the appraisal.
There are so many possiblities.

Your other 'back up' lenders are not going to want to expend all their energies to be the 'back up'.

This lender you have chosen is not worthy of being the 'starting' lender. Move on to your 'back up' and make a total commitment to them. They will perform well for you.

I think its time to maybe not panic, but move on...
1 vote
, ,
Fri Mar 21, 2014
Yes you certainly can. I would be more than happy to get you a price quote if you want to shop around for the best rate. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
1 vote
siaj_nad, Home Buyer, Fremont, CA
Mon Mar 24, 2014
Thank you for all your posts and responses. I emailed my US Bank loan officer for a communication plan going forward, so all parties are aware of next steps and will reduce unnecessary followups.

Apparently the loan officer is out of office today and this is the response I got from her associate :

" xxxx is out of office today but he will respond tomorrow
File is in processing " ...

Am I expecting too much from US Bank ? is this standard communication ? I want to make sure I am not going overboard with my expectations.

As the matter of fact , I signed all disclosure on Monday (3/17) and was told by the associate that appraisal order will go same day. No communication since then, on Thursday (3/20), my agent tried following up with LO 's associate but she never returned our call or emails. Later after following up the loan office, he realized that the appraisal order was never completed. He reordered the appraisal and finally went through. We have now appraisal scheduled for tomorrow ( for the order supposedly placed on 3/17). I don't know what are the norms are but took a week to schedule what should have been a day.

Stay tune for continued status update.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Mar 21, 2014
Peace of Mind.
Removing the uncertainty regarding financing a home purchase is indeed something you should seek and can find. Other than the sweet words of assurance lenders offer, how are you to tell if they are going to pull the rug from under you 2 day before closing 'cause they found something?
-
When choosing a lender, insist they provide you a "CLEAR - TO - CLOSE' BEFORE you go home shopping. THIS means your loan application HAS passed through underwriting and you have the money. The lender has invested THEIR money into the process FIRST, before you spend a dime on inspections or appraisal.

Along with a "Clear - to - Close' you will get a real GFE (not some worksheet) that allow you to see what your financing costs are.

If you want Peace of Mind.
If you want to remove the uncertainty of home financing.
If you want to remove the uncertainty of buying a home...
a "Clear-To-Close' will prove to be of more value than sweet words and the promise of a rebate. These quickly turn bitter in the gloom of disappointment.

Best of success in your real estate choices
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
0 votes
siaj_nad, Home Buyer, Fremont, CA
Fri Mar 21, 2014
The current lender is US Bank. Not sure if they are actually are brokers. I thought by picking direct lender I will have peace of mind.
0 votes
If you are still looking, I would be more than happy to help you. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
Flag Tue Mar 25, 2014
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