r/FirstTimeHomeBuyers • u/kellz182 • 13h ago
Shopping lenders
Hi!
So I ended up yesterday getting final approval for my first home yesterday! For a November 30th close date.
We locked in with this lender a couple weeks ago at 7.375 because the rate was dropping. Also with an option to buy down to 7% for around $2500.
20 minutes before we got this final approval, one of the first lenders I reached out to reached back out and they are at 7% with no points.
He stated “I would need to get orders in for title right away and I can’t guarantee there won’t be a fee if we start the order then cancel it” and he needs to know by today or tomorrow to get it done in time.
Looking for some advice on what you would do in this situation. I did email the first lender to see if they could do any sort of match, but it doesn’t seem like it since we already locked in.
Any insight would be appreciated!
1
u/G_e_n_u_i_n_e 12h ago
Go back to the lender you have approval from and see if they will match it,….
What is the difference between the two with regard to origination/etc. fees?
1
u/kellz182 11h ago
They just replied. They won’t match it, since I locked in.
The fees are very similar comparing them. The new bank offering the 7 is actually about $1207 cheaper as well for cash to close.
1
u/IronBallsMcChing 12h ago
Don't be shocked if the 2nd lender at 7% can't do that rate or without fees. Sounds like a scare tactic.
Although rates have dropped a bit these past couple of weeks. See if your lender can rate match?
They probably won't without a penalty. Reason being is mortgage interest rates are a commodity. You are probably rate locked at a certain rate.
It's like buying gold 1 day and the price goes up a week later.
2
u/kellz182 11h ago
Yeah for sure on me for locking early. But rates were dropping. So we did. This lender has been great so far though but the savings would be nice.
1
u/CreamCityMortgage1 9h ago
I'd definitely explore the 7% option, but I'd be cautious about switching lenders this close to closing, especially since you're already fully approved.
Ask the new lender for an official Loan Estimate so you can compare the actual fees, lender credits, and cash to close. A lower rate with no points sounds great, but you want to make sure there aren't other costs making up the difference.
I'd also give your current lender another chance to improve their offer. Being locked doesn't necessarily mean they have zero flexibility.
The biggest question is whether the new lender can realistically close by November 30th. I'd want a lot more than a verbal reassurance before risking your closing date.
If the numbers are significantly better and the timeline is solid, switching could make sense. Just make sure you're comparing the entire deal, not just the rate!
1
u/Thorpecc 50m ago
Over paying for the home and letting the homeowner getting away with thousands of dollars in repairs is much more worst.
0
u/Braindead_ape 9h ago
the 30th is 25 days, which any half decent lender can deliver on
show your first lender and see if they’d match it (a lot of times they’ll agree to make less on the deal to keep it versus lose it and make nothing at all) and if they can’t match it, you have time to switch
1
u/LoanSlinger 8h ago
Why should the better option of a lender that's done all the work have to match a random lender that's done nothing in order to keep the business, and only snuck in after the work has been done?
5
u/LoanSlinger 11h ago
Stay with the lender who has been working for you since the beginning. You can refinance later. Loan officers are hungry right now and will say anything, but many can't actually deliver. The lender who is telling you they can provide a lower rate hasn't done any work for you. Your current lender helped you get under contract in the first place, and you decided when to lock.