Lender Question
when can a borrower decide not to use a specific lender? I have a contract to buy a house and my lender is doing alot of screwing around. I got a copy of the HUD1 today and the closing costs are $1500 more than they said. If I back out of using there money to go to a different lender, do I have to pay anything to them like their origination fees and such? I am sure I have to pay the appraiser but can I not pay anything else?
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You do not have to pay them anything just tell them that you want the appraisars number and you do not want to use them. Once you find a new lender the appraisar just needs to change the appraisal into the new lenders name.
Thanks. Dont want to sound ungreatful but are you sure? I dont want to get stuck here. Bill
I did this on the first house I purchased. Never actually switched lenders, but threatened to do so and 1000 dollars in junk fees miraculously diassapeared.
The only bad part about changing lenders is that it will add more hits on your credit which can bring it down by 3 to 5 points. It is really only hurting you by changing lenders not the lender . You will also have to move back your closing date because your new lender will have to start over on your credit, title, insurance etc.
Chris. Not sure what u mean by your not under an obligation unless they got appraisal. They did order and got the appraisal. The lender made the appraiser go back 4 times so the cost for apprsaisal went from $225 to $500. I have no problem paying the appraiser. They went out and did the work. I have some fees for the actual lender and some for the mortgage broker listed. Can I dump both of them without a problem?
Great. Thanks everyone!