Changing Lenders During Mortgage Process: Will It Hurt Me?

Will changing lenders during mortgage process hurt me?

Gustan Cho Associates

The mortgage approval process is one of the most stressful process a home buyer and/or homeowner can go through, especially if they are not organized.  Many mortgage loan borrowers feel many things asked by their mortgage broker is extremely petty and there are those mortgage loan borrowers who ultimately give up or fire their current mortgage broker and hire a different mortgage broker thinking that someone else will make things easier.  Changing lenders during the mortgage approval process does happen for various reasons.

Reasons Why Borrowers Change Lenders During Mortgage Approval Process

One of the reasons why borrowers think about changing lenders during mortgage process is due to personality differences.  Studies prove that one of the biggest complaints against mortgage brokers is that mortgage brokers do not return phone calls on a timely manner to their borrowers.  One of the many complaints I get from borrowers who have dealt with other mortgage brokers is that they were cold called constantly and once they completed their mortgage application, everytime they called their mortgage brokers it went straight to voice mail and had no calls back.  They needed to constantly call them until they picked up their phone.  Mortgage professionals should always return their borrower’s phone calls and/or emails promptly and should be available 7 days per week.

Will Changing Lenders During Mortgage Process Cause Delays?

Why are you thinking of changing lenders during mortgage process?  Is it due to personality differences?  Is it because your mortgage broker does not return your phone calls?  Is it because your mortgage broker keeps on asking you for the same thing over and over again and misplaces the information you send him?  Is it because your mortgage broker keeps on changing the terms and conditions of the mortgage loan during the mortgage process?  Is it because your mortgage broker has total disregard for your loan commitment date and closing date and you need to request a closing extension over and over again without a loan approval?  Is it because the mortgage loan underwriter keeps on asking for more conditions after conditions after you submitted all of the conditions from the initial conditional mortgage loan approval?

Whatever the reason, changing lenders during the mortgage process will delay your mortgage loan closing no matter how much more competent your new mortgage lender is.

Going About Changing Lenders During Mortgage Process

If you decided that you will be changing lenders during mortgage process to a different lender, you need to start the process all over.  You need to complete a brand new mortgage loan application, 1003, and the new mortgage lender needs to run new credit, you need to provide all mortgage loan documents such as 2 years W-2s, recent pay check stubs, 60 days bank statements and other documents that you have submitted to your first mortgage lender.  If the first mortgage lender has ordered a FHA appraisal, the appraisal can be re-used by requesting a FHA appraisal transfer.  For conventional mortgage loan borrower’s who had a conventional appraisal done, the chances are that a new conventional appraisal need to be ordered.  Plan on having your mortgage loan close 30 days from the day you submit all of your mortgage documents, and signed mortgage disclosures and signed mortgage application.

Unless you have gotten a mortgage loan denial, it is strongly recommended that you stay with your original mortgage lender and close on your home loan instead of having your emotions upset you.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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