Can you change lenders

A lot of research goes into choosing a mortgage lender. There are reviews to read, interest rates to compare, fees to analyze. You want someone you can trust, someone who has your best interests top of mind and someone who can guide you through the right options.

Well, after your loan closes, your mortgage servicer is the company that manages your loan and collects payments. It may or may not be the lender that initially gave you a loan. During the origination period, you interact with a loan officer, mortgage processor, and underwriter. Still, there are a few reasons why you might want to consider it.

As you might have guessed, a better deal on the mortgage loan is the biggest reason homebuyers consider the switch. The better deal may be in the form of lower interest rates, lower origination fees, or both. After you find the ideal home and the seller accepts your offer, you decide to do a little browsing. Lo and behold, you discover that interest rates have fallen. You start wondering if the grass might be a bit greener and cheaper! The float-down option gives you the opportunity to reduce your locked mortgage rate if market interest rates fall.

This option can typically only be used once during the closing process. Unfortunately, it may not be as easy as submitting the same paperwork to a new lender. And in the end you might not get that stellar rate that caused you to switch in the first place. The new lender will need to pull an updated credit report and get the property appraised again. If you want a new lender, you may have to pay for another credit report, an additional application fee, and a new appraisal.

If that new appraisal comes in at a different lower value, then that is going to increase your loan-to-value ratio, which could in turn generate a lower rate than the one you thought you could get. So in other words: buyer, beware! Overlays are another reason buyers think about switching lenders. Select personalised content. Create a personalised content profile. Measure ad performance.

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Measure content performance. Develop and improve products. List of Partners vendors. By Aly J. Aly J. Yale is the homebuying, home loans, and mortgages expert for The Balance. With over 10 years of experience as a freelance writer and journalist, Aly has also contributed to online media outlets including Forbes, The Motley Fool, CreditCards.

We work with more than 15 lenders to help find you the best possible mortgage rates. In addition, we are known for closing on homes very quickly. Tel: Email: lancerichards live. Make an Appointment. May 18, by First Fidelis in Blog. Common Reasons Buyers Switch Mortgage Lenders There are hundreds of reasons that home buyers may be interested in finding a new mortgage lender partway through the buying process.

Here are some of the most common: Lower rates through another lender will save the buyer thousands of dollars throughout the lifetime of the loan. In most of these cases, changing to the lender with a lower rate is a no brainer for the home buyer. Delayed paperwork is a common problem with some lending companies. Unfortunately, this is the number one reason that most people switch lenders. The average amount of time that a lender will work on your loan is between 40 and 60 days, which already feels like a long time.

When delays push the process out even further, a lot of home buyers get really frustrated.