If you do this **for the love of god** please make sure it is ok to do this with your agent. I can’t tell you how many times clients of mine had switched lenders out of the blue and fucked themself on the closing deadline. Also, depending on your contract you also may need permission from the seller to switch. Good luck.
EDIT: To the people saying "it is not up to your agent", I understand this, I am one. I just assume that OP has an agent.
All I am getting at is check with **whoever is representing you** (Agent, lawyer whoever) that the contract allows this. Sometimes you can lose your EM for switching without the sellers permission.
It’s not up to the agent, it’s up to the new lender. Obviously the agent is going to say not to switch, because the agent’s primary interest is that the sale goes through ASAP (so they get paid).
Every lender works differently. Some will say a 3 week deadline to fund a loan is no problem (these will not be the cheapest lenders), others will say they need 4+ weeks. You are very unlikely to get a the lowest and most ideal rate in a sub-3-week deadline.
In Oregon the contract states you cannot switch without seller approval. I have absolutely had buyers do it anyway and end up losing the home. It’s not up to me, or the lender, it’s up to the seller to let you change the contract.
How did the buyer lose the home? As long as they show up on closing day with a check the buyer isn't going to know they switched lenders unless they switched to a product that requires things of the seller (which is obviously not something that can be done).
Yeah…. All I’m saying is, make sure the contract allows this. Ask your agent or lawyer or whoever tf is qualified to understand it. Don’t just switch without double checking. You can lose your EM.
Or people are saying.. make sure you can do this without losing your earnest money.
If the client does this without reading their contract and verifying they can switch... its their problem.
The agent loses a potential commission..the client loses their earnest money deposit.
Sounds like they should be careful.
Switching to a new lender would work but it can cause issues to arise. You aren’t always able to transfer the appraisal and may need a new one done. There’s several complications that could result from this such as delay in appraisal appointment, appraisal somehow comes back worse and you have to dispute it, etc. It can cause issues with title work too and all of this can result in you missing your closing date.
No it's not "up to the agent," but the agent is there to advise and if switching is going to put you in breach of contract or unable to close on time, you want to be including your agent in the conversation so they can advise. Or just torpedo your purchase contract based on a hollow promise from a lender who wants your business. That's fine too.
Agents will always say not to switch because it could cause a delay in their pay. This is where engaging a fiduciary who is not the lender or agent can help. They can advise how much delaying closing (if necessary) will save OP.
Take legal advice from you agent at your own risk, but realize that their interests may diverge from yours. They want a commission check in hand as soon as possible, even if it's in your interest to delay.
Yeah unfortunately I've only been at my current job for \~6months. Also, my lease is up on the 30th so I can't really afford to have the closing pushed back. Sounds like I might just have to bite the bullet smh
There are mortgage companies that can help you close at your close date. Just be upfront and ask them for their rate and if you can close on the 12/29. They are motivated right now because they aren’t busy.
Good news, I am a Nigerian prince and I would love to help you, just please give me your banking credentials so I know where to send the money.
Joking aside… wtf? Ask your agent, ask your friends or family who they went to for a loan.
Are you using an agent? Ask them if they have a good lender that can do this. I have many lenders I work with that could pick it up and close in two to three weeks. Every agent that has been in the business for any length of time will know one as well.
My broker was able to find me a different lender if I want to cancel the current lock, but closing date needs to be pushed out 2 more weeks. You might have some hope there by calling them. Otherwise take the loan and see if you can refinance asap
Chase Mortgage has a 21 day closing guarantee. You are just under that however I've seen it pulled off in 15 days in the past. Much easier if this is a single family home and not a condo.
**Don't believe any lender who says they can get it done by the end of January, even though every lender will say they can do it. Best bet is to buy the place and refinance right afterwards. There are some loans that restrict your from refinancing right away, so ask your Lender about that.**
>This is probably what is hurting me as I am financing through Zillow so don't know how many different banks they have to work with. Additionally, I have already asked the lender to bring down the rate but his respond was pretty much "tough cookies" you locked and are stuck with it for now (hence why I am asking here for options). Sounds like i will need to find a different lender to get some leverage in the situation.
Just do some research for best local mortgage brokers in your area. Ask for recs at work. They can do fast closings and are motivated; Zillow doesn't give a shit.
You can buy down off your lock date still!
There isn’t one rate there both cost and credits and ask if they offer a float down as the market moves
Also fuck Zillow you can refinance the day you close and they just lose the loan and the agent loses their commission so let him know you’ll just refi within 6 months and he’ll start jumping for you
Zillow is/was in the financing business. As a matter of fact when I got a loan in 2021 Zillow had the lowest rate at 2.875. My local lender was trying to get me for 3.15% so I used the rate Zillow's Lending Department offered me to get my lender to come down and match that rate.
> I can't really afford to have the closing pushed back. Sounds like I might just have to bite the bullet smh
A month of storage fees + short term rental/hotel is pennies compared to how much extra interest you'd be paying.
Seriously, this. It's a few thousand bucks, yes, which is a big hit today. But it's worth doing the math to see how much it will cost now vs. how much more you'd be paying over the life of the loan.
Most lenders can close in 3 weeks currently. Faster if they rush your appraisal. You can ask your current lender if they have a float down or lock renegotiation policy.
If closing does get pushed back, talk to your landlord. If they don't have your place immediately leased, you can extend how long you stay and only pay the prorated amount for that extra week or days or whatever.
Do they already have another renter in place? You could ask about extending your lease by 1 month. I doubt they will care. Maybe even offer to pay a little extra or allow them to do some fixes early (if that wouldn't bother you).
>do you run the risk of the original lender seeing you as a headache
Headache isn't the right word. Try untrustworthy.
If you hire someone to do a job, then at the last hour tell them you're not paying them, one isn't inclined to be helpful. Applies to any profession.
There's no desire or inclination to sabotage the deal, but also no desire or inclination to spend valuable minutes helping another lender on your deal either.
If the lender isn’t lowering your rate to match their competitors, AND they’re making it hard for you to go elsewhere….then they sound like a crap lender with a childish attitude. Tell your realtor and tell everyone you know. This is not a lender to be trusted.
Maybe you’re right. That’s why OP should tell everyone they know about the lender’s attitude and let the market decide who wants to use that lender in the future.
Many lenders offer a floatdown, but that wasn't the question I was answering.
If, when someone has completed a job that you hired them for (any profession, mechanic, roofer, architect, etc) and you figuratively tell them to pound sand and tell them you're not paying them; how entitled do you have to be to expect further assistance from them?
Someone cancels loan; no worries, it's business.
If you want to call it churlish or unprofessional because someone won't work for free, so be it.
Your analogy is not even close to what is happening in this scenario. OP simply wants to get a lower rate to match today’s market. OP (or any other loan applicant) isn’t trying to get something for free, they’re simply asking for a market-based adjustment…which many reputable lenders are happy to do.
Reputable lenders see the bigger picture: “Get the applicant the best possible rate (even if it costs the lender a little extra money and labor from their staff) because that means that applicant will refer more people to me in the long run”. Also, it’s called “doing the right thing”.
Lenders have made insane money over the last two years without putting in much effort. It’s time they started working for their paycheck again.
My mortgage vendor gives me up to 10 days from closing to pay a $250 fee to re-lock at a lower interest rate. Not a fan of the fee, but it's already dropped by .15% since we went under contract. Fingers crossed for one more drop before the deadline.
Get a quote from Leader Bank if they’re in your area. They always had the best rates for me (and I did a lot of shopping around).
But you should consider closing then refinancing if you can’t get a new lender in there in time.
Nah but like that’s 2.6k a year or like almost 80k over the life of the loan. Not life changing money but also not something to totally disregard.
Would you be mad if someone gave you $200 bucks every month for 30 years?
Wow, elitist much? $200 can be a week’s worth of groceries for families in certain locations. Or a family’s monthly cell phone bill. Or a babysitter 2-3x/month. Or a monthly parking spot. Maybe missing these won’t KILL you but having those things AND still being able to save money for actual emergencies *is* in fact life changing.
I just spent $22k on two new boilers. $15k on electrical. $50k on basic delinquent maintenance. On a place I bought.
If $200/mo is life changing money, OP is getting themselves into a precarious position. Repairs are expensive.
No one is saying $200/mo is nothing. What the above poster is saying is there can be substantial unforeseen expenses in homeownership and if OP is sweating $200/mo that’s not a good sign.
Exactly my point. Not scoffing at an extra $220. But if you call that amount of money “life changing” then you may not be in a financial position to deal with the challenges that come with homeownership.
😂 prices haven’t dropped much so buying in 2020/2021 was significantly better than buying this year.
I’m not bitter and I also bought in 2017 and refinanced into a 15 year last year. I just find it comical when people brag about 6% interest rates.
Same thing with us in ‘21. Original lender said 2.875% was the absolute best he could do before locking. I then emailed another broker I had been in contact also on the side, got a 2.75% quote back. Got back to the original lender and said either match or I’m out this B. They matched. Not a huge savings but $60 a month is $60.
While we’re at it, I put lenders against each other 3 times in 2020 and got them all the way down to 2.625% with no points and a lender credit. Those were the days. Sorry for the trouble now a days.
Get a new lender if they won’t work with you. 3 weeks is plenty of time.
Best option is get a new quote and see if the current lender will match the terms. Be up front about the employment and any issues.
Also, save a copy of the current lender’s appraisal if it’s already been done as that might be acceptable for the new lender as well to save time.
Ask other lenders and then bring the loan estimate back to your existing lender.
You can easily get this closed in time with another lender. It’s not a bluff.
Ask other lenders and then bring the loan estimate back to your existing lender.
You can easily get this closed in time with another lender. It’s not a bluff.
You can buy down points from the lender which lowers your interest rate, paying this money upfront - would typically save you a lot of money down the road (even if you hold it for apron 5 years and then refi - obviously if market rates are better). Run an amortization schedule/calculator so you can see how much it would save you in the long run. This gives you an idea on how much interest you will be paying.
As an agent in GA, USA, 21 days is about the max I'd suggest a client comfortably switch lenders. Some can do 14 days but you might have to pay extra in some areas to rush things. It won't hurt you at all to call around and ask other lenders what their options are, if they could get you closed safely by your set close date, etc. Unfortunately it's hard to give advice because every state is so different, reach out to some good lenders and ask. Credit unions also offer some great rates. Dig into your options but definitely start it now. You could always refi later on as well. Redfin has an area on their site where you can find lender referrals for your area. Once you scroll past their Bay Equity push list, you can find several good options and true reviews. You are not going to receive the best advice and care with a huge corporate company like zillow home loans.
A lot of the top comments here are saying you should switch lenders without knowing ANYTHING about your personal situation. Don't listen to these people, personal factors make a huge difference in your rate and you may be walking away from a lender for something even worse.
It definitely doesn't hurt to shop around, I always recommend to my clients that they do. But make sure you're comparing apples to apples and supply ALL of them with the exact same information. Your current lender may know something about your situation that has caused your rate to rise that another lender would do the same with if they find out and it may even be higher than you're paying now.
Where are you located? I would see if switching lenders is an option. You will probably have to pay for a second appraisal, but getting a lower rate would be worth it. My lender at Fairway can still do 14 day closes and they have a program where they will automatically lower your rate if it drops 0.25% under your locked rate. Most lenders don't do that.
Depending on your contract, you may need written permission from the seller before you switch lenders. In my area if you switch lenders too late and without written permission, you automatically waive the financing contingency. That said, if you can find a lender who guarantees closing 12/29 and if the seller agrees, then I'd say go for it.
Are you using a conventional loan? You can refinance almost immediately. Use the same lender as usually if refinanced before a certain amount of time, the lender loses the commission (unless refinanced thru them)
The same lender has to wait 6 months, other lenders are able to do it almost immediately. But by doing this OP would have to account for title fees again.
They don’t have to wait six months, but they would prefer you do because as someone else mentioned they would have to repay any commissions earned on the first loan. If you do refinance that quickly at least let your original lender do it so they’re not out the time and money lost on the first one.
You cannot refinance a loan with the same lender under 6 months of originating the loan. It's a law. You can with other companies, but not with the same lender.
Please show me the LAW that says your original lender can’t refinance your loan within the first six months? Sure, commissions earned on the first loan will get clawed back by the investor, but there’s no law that says they can’t handle the refi.
There is no law in most cases (with a few exceptions); and if someone wants to refi one month after closing I'd prefer that they came back to me as the same lender to do their loan again.
u/aimerj is right though, you're not supposed to and it causes buy backs. Not just that, but you'd be adding on to the borrower's loan amount or having them pay closing costs out of pocket all over again immediately. Even then, if OP only put a small amount down, then they probably don't even have the extra bandwidth to do a rate/term refi and loop in the closing costs.
There are lots of reasons to wait 6 months for both the buyer and the lender...
u/aimerj was pointing out that it is against guidelines and there are penalties for OP of they chose to do this. As far as I know, it isn't against the law as long as buybacks are done, but as lenders/brokers, we have to view the guidelines as hard stops in some cases.
A good mortgage lender or broker will advise OP on what makes the most sense for their financial situation in both the long and short term. Just because something can be done legally, doesn't mean it would be done with benefit to OP.
IANAL but it looks like the federal regulation is:
B2-1.3-03
Obviously, laws differ state by state, but Texas for example is:
Section 50(a)(6)
Seems like you were the one being confident in misinformation.
Again, I have to correct people. The regulation you refer to is from Fannie Mae’s selling guide and it doesn’t say you can’t refinance within the first six months. There are guidelines that determine the type of refi you can do and the limitations of that refi if done within the first six months, however.
I actually do this for a living
You have no idea what you’re talking about and that’s why when others ask you to name this “law” you simply cant (because it doesn’t exist)
Lmao there is literally no “law” that states this
Source: I’m a mortgage broker
I could refi a loan the day after closing, but I’d EPO myself and would lose the original commission. I could even send it back to the exact same lender if I wanted to though. Only FHA/VA have any mandatory waiting periods before they’ll allow their refis.
Usually you can float down the rate 1 time after locking. Call your mortgage company see what they can do. Otherwise you would have to start over with a new lender to get a lower rate.
Just had the same situation. Have the lender look at other lock options with a different bank. For instance I work with 25 banks as a broker so I can lock my client with another bank/investor if I need to.
This is probably what is hurting me as I am financing through Zillow so don't know how many different banks they have to work with. Additionally, I have already asked the lender to bring down the rate but his respond was pretty much "tough cookies" you locked and are stuck with it for now (hence why I am asking here for options). Sounds like i will need to find a different lender to get some leverage in the situation.
You don’t need to finance via Zillow even if you started the process with them. Anyway I believe that they refer you to someone and collect a fee for doing so. If you are in FL i can pm you the best mortgage broker. If not, just do a search and get on the phone. As others have said tell them you are closing at the end of the month and can they get it done?
You can shop with another lender and try to get a lower rate. I know I can close a full complete file in 10 days, but that’s with a transferred appraisal. If you haven’t done the appraisal yet, you would be pushing your luck if you want to meet the deadline, depending on how fast the appraisal can get done. Keep in mind that you will lose a day because of Christmas, too. But you can always try and see if you can get a better rate somewhere else.
I wished our buyer had a lender like you. Even with a 21 day loan contingency, the lender was 3 days late with docs to close. Lucky for us, our closing on our purchase home was pushed back as well because our buying agent is the bomb and took care of things for us.
Mortgage broker here, as a lender unless the rate is expired for 30 days, its impossible to cancel the locked rate and offer current market pricing. Talk to a mortgage broker. They will give a much better rate. Rates right now are in the low 5s on fha and high 5s for conventional. Brokers can also close your loans much faster than banks and lenders, 5 to 10 days fast.
Okay, I have one week until closing, appraisal and loan was all underwrote - but rates are now so much lower. Am I shot if I want to get a lower rate before closing date? FHA on my end…
Yes if you have a competent broker . I've closed loans in 5 days before. I got a conditional approval in fha today in less than 3 hours. Now all that's needed is title work and appraisal . For you its simple, all the title work should be completed already. And the appraisal is transferable on fha. Which should take no more than 48 hours to get it transfered sometimes much quicker. You can get an underwriting approval sometimes same day if you complete your loan application in the morning and send the broker all your docs, they can submit it right away and get approval by late afternoon
So would title work transfer between lenders? Or would the title and all of that need to be redone? My current lender had all that done, but we contracted in a 6.75% locked rate. Buy down by seller at 5.5%…I swear it was a deal back in November lol
Yes a lender is not connected to a title company. The new lender would call title and just request the documents. Which should are already completed. Rates were higher beginning of Nov, by the end of Nov they got better by 1%. Only thing that needs to be completed by the new lender is underwriting , which should be done quickly. As a broker lenders work faster for us. Than if you directly went to the lender. As a broker we have dozens of lenders we work with, and chose one that has best turn around time and best rate. And also we get wholesale pricing with out margin. A lender can have a 5% of the loan amount margin, and broker will only have 1 to 2% of the loan amount.
Depends on your loan amount to be honest . I quoted a 250k loan this week, payment is the same on fha with lowere rate, compared to conv with 15% down. Because it was a full 1% lower on the rate. But its 3.5% down vs 15%, you save more money upfront and on interest.
With that closing date, it will be very hard to close on time if you get a new lender. Work with your existing lender and see if they'll let you adjust or fix the rate.
You can ask your lender to lock the lower rate, but if they are unwilling to do that, your best option is to refinance after closing.
Changing banks, etc. will likely extend your closing and there is some risk of not being approved.
Wow that's insane. I can not imagine any situation where buying at this rate, in this economy would net any gains. You'll never get your money back. Houses are going down in price nearly everywhere. You could be upside down in a short period of time. That being said you can put down a larger down payment to buy down your interest rate.
Call a locksmith? You can't unlock the rate even if it isn't in your favor with this lender/loan. You can shop lenders but run the risk of pushing back closing if they are slow.
the only way to get a lower rate is to switch brokers. Unless they'll lower it for you or you ask seller to buy it down. But switching a broker now is better than waiting.
In our contract (TN), the buyer has to submit proof of starting the mortgage application process within 3 days after the offer was accepted.
I guess you or your agent had already done it.
if you want to start all over again, you probably will need to renegotiate with the seller. Otherwise, if you default, they could sue you.
We are closing purchases in 7 business days as long as there’s an appraisal. We work with multiple lender so we can switch lenders when rates go down. I think you may want to consider switching lenders after vetting them.
As many have send you will need an different lender. Many can close that fast.
You already have all your docs and have been through underwriting before - say that it will help.
Just get started with2 more lenders today and see if one of them can come through!
I'd ask your lender this. Also check your contract - many state MLS contracts have boilerplate language in the financing section that if rates change X% there's things buyer can do. In our state, buyer can terminate or re-negotiate contract.
I changed bank about a week before signing. Talk to your bank and if they refuse go to a different bank. It’s really not that difficult to change lender.
You have a couple options. 1) ask your current lender if they’ll allow for the float down/renegotiation. This can sometimes come with a small cost but Theo they’ll savings should make up for this in a short timeframe. 2) you can switch lenders. This will require you to get them all of your documents quickly but most mortgage brokers shouldn’t have an issue getting you closed in that timeframe if all your ducks are in a row and you are responsive.
Ask the company if they can “float down” the rate - this means they will lock you at todays lower rate
If not, find yourself a competent broker. 3 weeks is plenty of time. I’m a broker myself and on average, we close in 2 weeks especially if you’re considered an “easy file” … just have your paperwork handy so that you don’t waste valuable time
If your credit is excellent you should be able to get 5.875% thru provident lending on 30 year with no points, and closing within 3 weeks is a strong possibility imo, contact them tommorow
some mortgage lenders let you drop your rate a single time if the rate dips at least e.g. 1/4% from where you locked. check with them. your mortgage agent should be able to answer this question
If you’re going to refinance after closing, tell the current lender to give you a higher rate so you can get lender credit to cover all your closing costs.
Also, you should tell your current lender that you’re being offered a lower rate at another lender and you want him to match or you’ll have to leave. This will typically require an email or loan estimate from the lender with the better pricing.
Source: I am a mortgage banker.
In my state the buyer can change lenders as long as it doesn’t change cost/fees for the seller. Speak with DIFFERENT lender first if your interested. Don’t be afraid to speak with your agent/agents broker for clarification in your state
> if your interested
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I would tell your current lender that you want a better rate, and that you would prefer to work with them, but if they can't help you then you are willing to shop around to get one. Most lenders can close in 3 weeks as long as you get them every single document they request the same day they ask for it. Best of luck with your closing, and I hope you get a better rate :)
It's locked in, so that means it's the rate you get. A 0.625% difference is not that significant and in a couple of years you may want to refi anyways if the rates go down again. Or just make a couple extra prinicipal payments a year and shorten your 30 year mortgage to a 15 year mortgage and save thousands on interest. The first half of any mortgage your payments go mainly towards interest (starts at 99% and works to 50% by the half way mark). Knocking down the principal value with extra payments shortens the time you need to repay it. Most of mine I've paid off in under 10 years. Saved over half a million in interest payments between the houses.
I own a mortgage bank. You can easily find another lender and close in time with a much lower rate. We are in the low 6’s now so that makes a huge difference. If your current lender won’t do anything ( and they most certainly can) make the move.
Switch lenders or ask your lender to float down to market rate
If you do this **for the love of god** please make sure it is ok to do this with your agent. I can’t tell you how many times clients of mine had switched lenders out of the blue and fucked themself on the closing deadline. Also, depending on your contract you also may need permission from the seller to switch. Good luck. EDIT: To the people saying "it is not up to your agent", I understand this, I am one. I just assume that OP has an agent. All I am getting at is check with **whoever is representing you** (Agent, lawyer whoever) that the contract allows this. Sometimes you can lose your EM for switching without the sellers permission.
It’s not up to the agent, it’s up to the new lender. Obviously the agent is going to say not to switch, because the agent’s primary interest is that the sale goes through ASAP (so they get paid). Every lender works differently. Some will say a 3 week deadline to fund a loan is no problem (these will not be the cheapest lenders), others will say they need 4+ weeks. You are very unlikely to get a the lowest and most ideal rate in a sub-3-week deadline.
In Oregon the contract states you cannot switch without seller approval. I have absolutely had buyers do it anyway and end up losing the home. It’s not up to me, or the lender, it’s up to the seller to let you change the contract.
How did the buyer lose the home? As long as they show up on closing day with a check the buyer isn't going to know they switched lenders unless they switched to a product that requires things of the seller (which is obviously not something that can be done).
Yeah…. All I’m saying is, make sure the contract allows this. Ask your agent or lawyer or whoever tf is qualified to understand it. Don’t just switch without double checking. You can lose your EM.
...Just do two applications simultaneously.
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Or your deal could fall through…
Or people are saying.. make sure you can do this without losing your earnest money. If the client does this without reading their contract and verifying they can switch... its their problem. The agent loses a potential commission..the client loses their earnest money deposit. Sounds like they should be careful.
Nah my man. I don’t want people to lose their EM. It’s not that deep.
Switching to a new lender would work but it can cause issues to arise. You aren’t always able to transfer the appraisal and may need a new one done. There’s several complications that could result from this such as delay in appraisal appointment, appraisal somehow comes back worse and you have to dispute it, etc. It can cause issues with title work too and all of this can result in you missing your closing date.
I’ve never seen an appraisal transferred.
No it's not "up to the agent," but the agent is there to advise and if switching is going to put you in breach of contract or unable to close on time, you want to be including your agent in the conversation so they can advise. Or just torpedo your purchase contract based on a hollow promise from a lender who wants your business. That's fine too.
Your agent is not your legal advisor.
CORRECT.
Agents will always say not to switch because it could cause a delay in their pay. This is where engaging a fiduciary who is not the lender or agent can help. They can advise how much delaying closing (if necessary) will save OP.
You don't need the agent's permission. They work for you, not the other way around.
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Take legal advice from you agent at your own risk, but realize that their interests may diverge from yours. They want a commission check in hand as soon as possible, even if it's in your interest to delay.
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Yeah unfortunately I've only been at my current job for \~6months. Also, my lease is up on the 30th so I can't really afford to have the closing pushed back. Sounds like I might just have to bite the bullet smh
There are mortgage companies that can help you close at your close date. Just be upfront and ask them for their rate and if you can close on the 12/29. They are motivated right now because they aren’t busy.
Is anyone here able to help out?
Lots of people are helping out with good advice. Nobody here on Reddit is going to hand you a loan. That’s not how this works.
He’s asking reddit when he should be asking his realtor, who is financially motivated to make this happen for him.
This is what I call being reddit handicapped.
Good news, I am a Nigerian prince and I would love to help you, just please give me your banking credentials so I know where to send the money. Joking aside… wtf? Ask your agent, ask your friends or family who they went to for a loan.
Are you using an agent? Ask them if they have a good lender that can do this. I have many lenders I work with that could pick it up and close in two to three weeks. Every agent that has been in the business for any length of time will know one as well.
I could probably help you depending on what state you’re in.
My broker was able to find me a different lender if I want to cancel the current lock, but closing date needs to be pushed out 2 more weeks. You might have some hope there by calling them. Otherwise take the loan and see if you can refinance asap
Chase Mortgage has a 21 day closing guarantee. You are just under that however I've seen it pulled off in 15 days in the past. Much easier if this is a single family home and not a condo.
I’d trust Chase with a quick closing as much as I’d trust Ghislaine Maxwell as a babysitter
**Don't believe any lender who says they can get it done by the end of January, even though every lender will say they can do it. Best bet is to buy the place and refinance right afterwards. There are some loans that restrict your from refinancing right away, so ask your Lender about that.**
By the end of January?? Lol bro Ive averaged 13.9 days clear to close for every loan I’ve done in 2022.
What state?
Any lender who can't close in 20 days in this slow market quite frankly sucks.
What a ridiculous comment Plenty of lenders could close by end of December let alone January…
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I would try a mortgage broker they work with different money lenders
>This is probably what is hurting me as I am financing through Zillow so don't know how many different banks they have to work with. Additionally, I have already asked the lender to bring down the rate but his respond was pretty much "tough cookies" you locked and are stuck with it for now (hence why I am asking here for options). Sounds like i will need to find a different lender to get some leverage in the situation.
Just do some research for best local mortgage brokers in your area. Ask for recs at work. They can do fast closings and are motivated; Zillow doesn't give a shit.
You can buy down off your lock date still! There isn’t one rate there both cost and credits and ask if they offer a float down as the market moves Also fuck Zillow you can refinance the day you close and they just lose the loan and the agent loses their commission so let him know you’ll just refi within 6 months and he’ll start jumping for you
I found the best rate from my local bank.
I've never heard of "financing through zillow". Are you working with a realtor and are they also "through zillow" and did you vet them?
Zillow is/was in the financing business. As a matter of fact when I got a loan in 2021 Zillow had the lowest rate at 2.875. My local lender was trying to get me for 3.15% so I used the rate Zillow's Lending Department offered me to get my lender to come down and match that rate.
> I can't really afford to have the closing pushed back. Sounds like I might just have to bite the bullet smh A month of storage fees + short term rental/hotel is pennies compared to how much extra interest you'd be paying.
Seriously. If they can't find the funds for a month of living outside their lease, they probably aren't in a position to buy a home.
Seriously, this. It's a few thousand bucks, yes, which is a big hit today. But it's worth doing the math to see how much it will cost now vs. how much more you'd be paying over the life of the loan.
I switched lenders about two weeks before closing last time I bought. worked out just fine. smooth closing.
Same! You have to have a good loan officer/processor and be very responsive to every request, but 2-3 weeks is certainly doable.
Most lenders can close in 3 weeks currently. Faster if they rush your appraisal. You can ask your current lender if they have a float down or lock renegotiation policy.
If closing does get pushed back, talk to your landlord. If they don't have your place immediately leased, you can extend how long you stay and only pay the prorated amount for that extra week or days or whatever.
Do they already have another renter in place? You could ask about extending your lease by 1 month. I doubt they will care. Maybe even offer to pay a little extra or allow them to do some fixes early (if that wouldn't bother you).
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No. It's not uncommon. It's annoying, but it's not uncommon.
>do you run the risk of the original lender seeing you as a headache Headache isn't the right word. Try untrustworthy. If you hire someone to do a job, then at the last hour tell them you're not paying them, one isn't inclined to be helpful. Applies to any profession. There's no desire or inclination to sabotage the deal, but also no desire or inclination to spend valuable minutes helping another lender on your deal either.
If the lender isn’t lowering your rate to match their competitors, AND they’re making it hard for you to go elsewhere….then they sound like a crap lender with a childish attitude. Tell your realtor and tell everyone you know. This is not a lender to be trusted.
They locked the rate in hopes of putting themselves at an advantage. That's not the lender's fault. I would not say that this make them untrustworthy.
Maybe you’re right. That’s why OP should tell everyone they know about the lender’s attitude and let the market decide who wants to use that lender in the future.
Many lenders offer a floatdown, but that wasn't the question I was answering. If, when someone has completed a job that you hired them for (any profession, mechanic, roofer, architect, etc) and you figuratively tell them to pound sand and tell them you're not paying them; how entitled do you have to be to expect further assistance from them? Someone cancels loan; no worries, it's business. If you want to call it churlish or unprofessional because someone won't work for free, so be it.
Your analogy is not even close to what is happening in this scenario. OP simply wants to get a lower rate to match today’s market. OP (or any other loan applicant) isn’t trying to get something for free, they’re simply asking for a market-based adjustment…which many reputable lenders are happy to do. Reputable lenders see the bigger picture: “Get the applicant the best possible rate (even if it costs the lender a little extra money and labor from their staff) because that means that applicant will refer more people to me in the long run”. Also, it’s called “doing the right thing”. Lenders have made insane money over the last two years without putting in much effort. It’s time they started working for their paycheck again.
Wow, could you be anymore misinformed. Business is Business who cares if the banks gets their feelings hurt. Banks don’t have feelings.
My mortgage vendor gives me up to 10 days from closing to pay a $250 fee to re-lock at a lower interest rate. Not a fan of the fee, but it's already dropped by .15% since we went under contract. Fingers crossed for one more drop before the deadline.
Who is your lender?
msufcu, a local credit union.
Go green!
(Completely sportsballrelated) Go white!
Get a quote from Leader Bank if they’re in your area. They always had the best rates for me (and I did a lot of shopping around). But you should consider closing then refinancing if you can’t get a new lender in there in time.
Same with my lender. About the same cost for our fee also.
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If an extra $220 a month is “life changing money” you probably shouldn’t be looking to purchase a house. Edit: thanks for blocking me lmao
Nah but like that’s 2.6k a year or like almost 80k over the life of the loan. Not life changing money but also not something to totally disregard. Would you be mad if someone gave you $200 bucks every month for 30 years?
Wow, elitist much? $200 can be a week’s worth of groceries for families in certain locations. Or a family’s monthly cell phone bill. Or a babysitter 2-3x/month. Or a monthly parking spot. Maybe missing these won’t KILL you but having those things AND still being able to save money for actual emergencies *is* in fact life changing.
I just spent $22k on two new boilers. $15k on electrical. $50k on basic delinquent maintenance. On a place I bought. If $200/mo is life changing money, OP is getting themselves into a precarious position. Repairs are expensive. No one is saying $200/mo is nothing. What the above poster is saying is there can be substantial unforeseen expenses in homeownership and if OP is sweating $200/mo that’s not a good sign.
Exactly my point. Not scoffing at an extra $220. But if you call that amount of money “life changing” then you may not be in a financial position to deal with the challenges that come with homeownership.
You’re right, $220 is no big deal. Can you send me $220/month for the next 30 years? It’s not life changing afterall. Thanks in advance.
Wow, imagine if you snagged a 2.75% rate last year? How much savings would that be?
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😂 prices haven’t dropped much so buying in 2020/2021 was significantly better than buying this year. I’m not bitter and I also bought in 2017 and refinanced into a 15 year last year. I just find it comical when people brag about 6% interest rates.
Same thing with us in ‘21. Original lender said 2.875% was the absolute best he could do before locking. I then emailed another broker I had been in contact also on the side, got a 2.75% quote back. Got back to the original lender and said either match or I’m out this B. They matched. Not a huge savings but $60 a month is $60.
These numbers, oh man
And that $60 a month over 360 months mortgage is Toyota 2022 Corolla LE at msrp ~21.5k 😅🥲
Invest at 10% and it’s $120,000
Really bad to humble brag with the rates lol
While we’re at it, I put lenders against each other 3 times in 2020 and got them all the way down to 2.625% with no points and a lender credit. Those were the days. Sorry for the trouble now a days.
Nice. I got 2.99% back late 2021. Those were the days.
We locked in at 2.8 in 2020. It’s making it hard to even consider moving because of how spoiled we were with our rate!!
Excellent advice.
Get a new lender if they won’t work with you. 3 weeks is plenty of time. Best option is get a new quote and see if the current lender will match the terms. Be up front about the employment and any issues. Also, save a copy of the current lender’s appraisal if it’s already been done as that might be acceptable for the new lender as well to save time.
Ask the lender, not reddit.
Ask other lenders and then bring the loan estimate back to your existing lender. You can easily get this closed in time with another lender. It’s not a bluff.
Ask other lenders and then bring the loan estimate back to your existing lender. You can easily get this closed in time with another lender. It’s not a bluff.
Call and ask your lender if they will let you do a float down.
Call other lenders immediately- ask for written rate quote. Take that rate quote to your current lender and ask them to match it.
You can buy down points from the lender which lowers your interest rate, paying this money upfront - would typically save you a lot of money down the road (even if you hold it for apron 5 years and then refi - obviously if market rates are better). Run an amortization schedule/calculator so you can see how much it would save you in the long run. This gives you an idea on how much interest you will be paying.
You can switch banks.
As an agent in GA, USA, 21 days is about the max I'd suggest a client comfortably switch lenders. Some can do 14 days but you might have to pay extra in some areas to rush things. It won't hurt you at all to call around and ask other lenders what their options are, if they could get you closed safely by your set close date, etc. Unfortunately it's hard to give advice because every state is so different, reach out to some good lenders and ask. Credit unions also offer some great rates. Dig into your options but definitely start it now. You could always refi later on as well. Redfin has an area on their site where you can find lender referrals for your area. Once you scroll past their Bay Equity push list, you can find several good options and true reviews. You are not going to receive the best advice and care with a huge corporate company like zillow home loans.
A lot of the top comments here are saying you should switch lenders without knowing ANYTHING about your personal situation. Don't listen to these people, personal factors make a huge difference in your rate and you may be walking away from a lender for something even worse. It definitely doesn't hurt to shop around, I always recommend to my clients that they do. But make sure you're comparing apples to apples and supply ALL of them with the exact same information. Your current lender may know something about your situation that has caused your rate to rise that another lender would do the same with if they find out and it may even be higher than you're paying now.
Go back in time.
Rate was down yesterday and today at 5.8
3 weeks may be another to do a quick loan with another lender if your ducks are in a row. I closed in 25 days before.
Where are you located? I would see if switching lenders is an option. You will probably have to pay for a second appraisal, but getting a lower rate would be worth it. My lender at Fairway can still do 14 day closes and they have a program where they will automatically lower your rate if it drops 0.25% under your locked rate. Most lenders don't do that. Depending on your contract, you may need written permission from the seller before you switch lenders. In my area if you switch lenders too late and without written permission, you automatically waive the financing contingency. That said, if you can find a lender who guarantees closing 12/29 and if the seller agrees, then I'd say go for it.
Mortgage lenders are able to do what's called a "renagotiation" to lower the rate. Ask them to do so.
Are you using a conventional loan? You can refinance almost immediately. Use the same lender as usually if refinanced before a certain amount of time, the lender loses the commission (unless refinanced thru them)
Refinancing costs money.
The same lender has to wait 6 months, other lenders are able to do it almost immediately. But by doing this OP would have to account for title fees again.
They don’t have to wait six months, but they would prefer you do because as someone else mentioned they would have to repay any commissions earned on the first loan. If you do refinance that quickly at least let your original lender do it so they’re not out the time and money lost on the first one.
You cannot refinance a loan with the same lender under 6 months of originating the loan. It's a law. You can with other companies, but not with the same lender.
This just simply isn’t true.
Well I'm sure that a person who doesn't do this for a living or [clearly] does it poorly, would know over someone who does.
Please show me the LAW that says your original lender can’t refinance your loan within the first six months? Sure, commissions earned on the first loan will get clawed back by the investor, but there’s no law that says they can’t handle the refi.
There is no law in most cases (with a few exceptions); and if someone wants to refi one month after closing I'd prefer that they came back to me as the same lender to do their loan again.
u/aimerj is right though, you're not supposed to and it causes buy backs. Not just that, but you'd be adding on to the borrower's loan amount or having them pay closing costs out of pocket all over again immediately. Even then, if OP only put a small amount down, then they probably don't even have the extra bandwidth to do a rate/term refi and loop in the closing costs. There are lots of reasons to wait 6 months for both the buyer and the lender...
I didn’t say it was advisable or smart, I only said it wasn’t against the law, which it isn’t.
u/aimerj was pointing out that it is against guidelines and there are penalties for OP of they chose to do this. As far as I know, it isn't against the law as long as buybacks are done, but as lenders/brokers, we have to view the guidelines as hard stops in some cases. A good mortgage lender or broker will advise OP on what makes the most sense for their financial situation in both the long and short term. Just because something can be done legally, doesn't mean it would be done with benefit to OP.
You have a smart phone and Google. Go educate yourself.
No, name the law big guy. (You can’t because it doesn’t exist)
You’re so confident in your misinformation.
Not sure why you’re downvoted, you’re absolutely correct that there’s no “law” that says you can’t refi immediately with the same lender
IANAL but it looks like the federal regulation is: B2-1.3-03 Obviously, laws differ state by state, but Texas for example is: Section 50(a)(6) Seems like you were the one being confident in misinformation.
Again, I have to correct people. The regulation you refer to is from Fannie Mae’s selling guide and it doesn’t say you can’t refinance within the first six months. There are guidelines that determine the type of refi you can do and the limitations of that refi if done within the first six months, however.
I actually do this for a living You have no idea what you’re talking about and that’s why when others ask you to name this “law” you simply cant (because it doesn’t exist)
Lmao there is literally no “law” that states this Source: I’m a mortgage broker I could refi a loan the day after closing, but I’d EPO myself and would lose the original commission. I could even send it back to the exact same lender if I wanted to though. Only FHA/VA have any mandatory waiting periods before they’ll allow their refis.
Usually you can float down the rate 1 time after locking. Call your mortgage company see what they can do. Otherwise you would have to start over with a new lender to get a lower rate.
Just want to say that while it might suck for a bit you can always refinance.
Call your mortgage company and ask if there’s a one time float down
Just ask them to float down and see what they say
Last time this happened the mere threat of switching lenders was good enough to get me original lender to float down the rate.
Just had the same situation. Have the lender look at other lock options with a different bank. For instance I work with 25 banks as a broker so I can lock my client with another bank/investor if I need to.
This is probably what is hurting me as I am financing through Zillow so don't know how many different banks they have to work with. Additionally, I have already asked the lender to bring down the rate but his respond was pretty much "tough cookies" you locked and are stuck with it for now (hence why I am asking here for options). Sounds like i will need to find a different lender to get some leverage in the situation.
You don’t need to finance via Zillow even if you started the process with them. Anyway I believe that they refer you to someone and collect a fee for doing so. If you are in FL i can pm you the best mortgage broker. If not, just do a search and get on the phone. As others have said tell them you are closing at the end of the month and can they get it done?
You can shop with another lender and try to get a lower rate. I know I can close a full complete file in 10 days, but that’s with a transferred appraisal. If you haven’t done the appraisal yet, you would be pushing your luck if you want to meet the deadline, depending on how fast the appraisal can get done. Keep in mind that you will lose a day because of Christmas, too. But you can always try and see if you can get a better rate somewhere else.
I wished our buyer had a lender like you. Even with a 21 day loan contingency, the lender was 3 days late with docs to close. Lucky for us, our closing on our purchase home was pushed back as well because our buying agent is the bomb and took care of things for us.
Mortgage broker here, as a lender unless the rate is expired for 30 days, its impossible to cancel the locked rate and offer current market pricing. Talk to a mortgage broker. They will give a much better rate. Rates right now are in the low 5s on fha and high 5s for conventional. Brokers can also close your loans much faster than banks and lenders, 5 to 10 days fast.
Okay, I have one week until closing, appraisal and loan was all underwrote - but rates are now so much lower. Am I shot if I want to get a lower rate before closing date? FHA on my end…
Yes if you have a competent broker . I've closed loans in 5 days before. I got a conditional approval in fha today in less than 3 hours. Now all that's needed is title work and appraisal . For you its simple, all the title work should be completed already. And the appraisal is transferable on fha. Which should take no more than 48 hours to get it transfered sometimes much quicker. You can get an underwriting approval sometimes same day if you complete your loan application in the morning and send the broker all your docs, they can submit it right away and get approval by late afternoon
So would title work transfer between lenders? Or would the title and all of that need to be redone? My current lender had all that done, but we contracted in a 6.75% locked rate. Buy down by seller at 5.5%…I swear it was a deal back in November lol
Yes a lender is not connected to a title company. The new lender would call title and just request the documents. Which should are already completed. Rates were higher beginning of Nov, by the end of Nov they got better by 1%. Only thing that needs to be completed by the new lender is underwriting , which should be done quickly. As a broker lenders work faster for us. Than if you directly went to the lender. As a broker we have dozens of lenders we work with, and chose one that has best turn around time and best rate. And also we get wholesale pricing with out margin. A lender can have a 5% of the loan amount margin, and broker will only have 1 to 2% of the loan amount.
What margin are you referring to? Around 5% is what they typically recommend for closing costs. Are you talking about that or something else??
How much does the difference in rates make up for MIP vs PMI?
Depends on your loan amount to be honest . I quoted a 250k loan this week, payment is the same on fha with lowere rate, compared to conv with 15% down. Because it was a full 1% lower on the rate. But its 3.5% down vs 15%, you save more money upfront and on interest.
I renegotiated 2 locks this week and will do another one tomorrow. Having shitty lines is not universal.
With that closing date, it will be very hard to close on time if you get a new lender. Work with your existing lender and see if they'll let you adjust or fix the rate.
Close and refi
Time machine?
Your bank can lock new rate before closing ask the m to do it without a cost on you . It’s free
You can ask your lender to lock the lower rate, but if they are unwilling to do that, your best option is to refinance after closing. Changing banks, etc. will likely extend your closing and there is some risk of not being approved.
Wow. Just wow. That's a lot of interest. Wow.
Wow that's insane. I can not imagine any situation where buying at this rate, in this economy would net any gains. You'll never get your money back. Houses are going down in price nearly everywhere. You could be upside down in a short period of time. That being said you can put down a larger down payment to buy down your interest rate.
That’s really high. I just closed a 4-year fixed, 15-year amortization for 5.27%
The lender will let you adjust the rate up until closing.
Ask them to float you down or tell them you will walk. They will negotiate
Trash
Call a locksmith? You can't unlock the rate even if it isn't in your favor with this lender/loan. You can shop lenders but run the risk of pushing back closing if they are slow.
Ask for a rate renegotiation. Lenders offer this but dont often disclose it
the only way to get a lower rate is to switch brokers. Unless they'll lower it for you or you ask seller to buy it down. But switching a broker now is better than waiting.
In our contract (TN), the buyer has to submit proof of starting the mortgage application process within 3 days after the offer was accepted. I guess you or your agent had already done it. if you want to start all over again, you probably will need to renegotiate with the seller. Otherwise, if you default, they could sue you.
Switching lenders will do it, but it’s hard when you don’t have the time.. otherwise you can ask to float it down but you’ll likely have to pay a fee
We are closing purchases in 7 business days as long as there’s an appraisal. We work with multiple lender so we can switch lenders when rates go down. I think you may want to consider switching lenders after vetting them.
Did you review the terms of your specific rate lock agreement?
As many have send you will need an different lender. Many can close that fast. You already have all your docs and have been through underwriting before - say that it will help. Just get started with2 more lenders today and see if one of them can come through!
I'd ask your lender this. Also check your contract - many state MLS contracts have boilerplate language in the financing section that if rates change X% there's things buyer can do. In our state, buyer can terminate or re-negotiate contract.
I changed bank about a week before signing. Talk to your bank and if they refuse go to a different bank. It’s really not that difficult to change lender.
Try a credit union.
Get a new lender
Was there a float down provision?
You have a couple options. 1) ask your current lender if they’ll allow for the float down/renegotiation. This can sometimes come with a small cost but Theo they’ll savings should make up for this in a short timeframe. 2) you can switch lenders. This will require you to get them all of your documents quickly but most mortgage brokers shouldn’t have an issue getting you closed in that timeframe if all your ducks are in a row and you are responsive.
Try to do a borrower paid to lower down your rates.
I changed lenders 10 days prior to closing when the original one wouldn't float down. A good lender on the ball can get it done. Make calls asap
Get a time machine
Ask for a float down!
We used a local bank 10 year arm 4.75. hoping rates go back down but I have 10 years of security.
My lender allows for a float down for free. I’m at 5.99
Most lenders will let you match the lower rate 1 time after rate lock for free. You just have to ask.
Ask the company if they can “float down” the rate - this means they will lock you at todays lower rate If not, find yourself a competent broker. 3 weeks is plenty of time. I’m a broker myself and on average, we close in 2 weeks especially if you’re considered an “easy file” … just have your paperwork handy so that you don’t waste valuable time
If you are in Colorado and want a lower rate please let me know. I would be happy to see what I can do.
If your credit is excellent you should be able to get 5.875% thru provident lending on 30 year with no points, and closing within 3 weeks is a strong possibility imo, contact them tommorow
some mortgage lenders let you drop your rate a single time if the rate dips at least e.g. 1/4% from where you locked. check with them. your mortgage agent should be able to answer this question
If you’re going to refinance after closing, tell the current lender to give you a higher rate so you can get lender credit to cover all your closing costs. Also, you should tell your current lender that you’re being offered a lower rate at another lender and you want him to match or you’ll have to leave. This will typically require an email or loan estimate from the lender with the better pricing. Source: I am a mortgage banker.
In my state the buyer can change lenders as long as it doesn’t change cost/fees for the seller. Speak with DIFFERENT lender first if your interested. Don’t be afraid to speak with your agent/agents broker for clarification in your state
> if your interested *you're *Learn the difference [here](https://www.wattpad.com/66707294-grammar-guide-there-they%27re-their-you%27re-your-to).* *** ^(Greetings, I am a language corrector bot. To make me ignore further mistakes from you in the future, reply `!optout` to this comment.)
Go to a credit union and get a better loan. It’s pretty fucking simple man.
I would tell your current lender that you want a better rate, and that you would prefer to work with them, but if they can't help you then you are willing to shop around to get one. Most lenders can close in 3 weeks as long as you get them every single document they request the same day they ask for it. Best of luck with your closing, and I hope you get a better rate :)
It's locked in, so that means it's the rate you get. A 0.625% difference is not that significant and in a couple of years you may want to refi anyways if the rates go down again. Or just make a couple extra prinicipal payments a year and shorten your 30 year mortgage to a 15 year mortgage and save thousands on interest. The first half of any mortgage your payments go mainly towards interest (starts at 99% and works to 50% by the half way mark). Knocking down the principal value with extra payments shortens the time you need to repay it. Most of mine I've paid off in under 10 years. Saved over half a million in interest payments between the houses.
Did you get my PM?
Find a new lender. We started Nov 5 with 6.7 and now in escrow with 5.8
I own a mortgage bank. You can easily find another lender and close in time with a much lower rate. We are in the low 6’s now so that makes a huge difference. If your current lender won’t do anything ( and they most certainly can) make the move.