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Changing Lenders During Underwriting Process Before Closing

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Changing Lenders During Underwriting Process Before Closing

This BLOG On Changing Lenders During Underwriting Process Before Closing Was UPDATED And PUBLISHED On August 10th, 2019

Changing Lenders During Underwriting Process
Gustan Cho Associates Mortgage Group

 

The mortgage approval process is one of the most stressful process a home buyer and/or homeowner can go through. This holds especially true if the loan officer and support team is not organized.

  • Changing Lenders During Underwriting Process is becoming more and more common
  • Over 35% of our borrowers at Gustan Cho Associates Mortgage Group are folks who are changing lenders during underwriting process to us
  • There is no reason why borrowers should get a last-minute mortgage loan denial or stress during the mortgage process
  • The number one reason for last-minute mortgage loan denial or stress during the mortgage process is because the loan officer did not properly qualify borrowers
  • Loan officers should not issue pre-approvals
  • All of our pre-approvals at Gustan Cho Associates Mortgage Group are fully underwritten and signed off by our mortgage underwriters
  • No loan officers are authorized to issue and sign off on borrowers pre-approvals
  • Loan officers can issue pre-qualification letters but not pre-approval letters
  • Home Buyers and their families depend on our pre-approvals so if a loan officer issues a pre-approval within an hour, borrowers need to think twice
  • We close 100% of all of our pre-approved borrowers because all of our pre-approvals are loan commitments

In this article, we will cover and discuss Changing Lenders During Underwriting Process Before Closing.

Stress During Mortgage Process Can Be Avoided

How Stress During Mortgage Process Can Be Avoided

As mentioned earlier, there is no reason why borrowers should stress during the mortgage process or get a mortgage loan denial:

  • Many borrowers feel many things asked by their lender is extremely petty
  • There are many times where borrowers get so stressed by mortgage underwriters asking for same conditions over and over again
  • After providing conditions on a conditional loan approval, mortgage underwriters come back with more conditions
  • Borrowers eventually give up or fire their current lender and look for a different lender
  • Common borrower complaints are loan officers not picking up their phone calls or return their emails timely
  • Borrowers frantically search for other lenders thinking that someone else will make things easier

Changing lenders during underwriter process does happen for various reasons.

Reasons Why Borrowers Change Lenders During Underwriting Process

what are the Reasons Why Borrowers Change Lenders During Underwriting Process

One of the reasons why borrowers think about changing lenders during underwriting process is due to personality differences.

  • Studies prove that one of the biggest complaints against loan officers is because they do not return phone calls in a timely manner
  • One of the many complaints I get from borrowers who have dealt with borrowers transferring from other lenders is that they were promised the world and loan officers/support staff were next to impossible to get a hold of
  • Borrowers were cold-called constantly and once they completed their mortgage application and signed the intent to proceed, they were treated like second-hand citizens
  • Every time borrowers called their loan officers 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

Loan Officers should be available 7 days per week.

Will Changing Lenders During Underwriting Process Cause Delays?

Will Changing Lenders During Underwriting Process Cause Delays?

Why do borrowers think about changing lenders during underwriting process?

  • Is it due to personality differences? 
  • Is it because the loan officer does not return phone calls? 
  • Is it because the loan processor keeps on asking for the same thing over and over again and misplaces the information? 
  • Is it because the loan officer keeps on changing the terms and conditions of loan during the mortgage process? 
  • Is it because the loan officer has total disregard for 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 underwriter keeps on asking for more conditions after conditions after submitted all of the conditions from the initial conditional mortgage loan approval?

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

Going About Changing Lenders During Underwriting Process

Everything Going About Changing Lenders During Underwriting Process

Borrowers who already decided on changing lenders during underwriting process will be changing lenders need to start the process all over.

  • Need to complete a brand new mortgage loan application, 1003, and the new mortgage lender needs to run a new credit
  • Need to provide all mortgage loan documents such as the following:
    • 2 years W-2s
    • recent paycheck stubs
    • 60 days bank statements
    • other documents borrowers submitted to the first lender
  • If the first lender has ordered an FHA appraisal, the appraisal can be re-used
  • FHA Home Appraisal transfers when the new lender requests FHA Case Number transfer
  • Borrowers who had a conventional appraisal done, the chances are that a new conventional appraisal need to be ordered
  • Plan on having mortgage loan close 30 days from the day submitting all of the mortgage documents, and signed mortgage disclosures and signed mortgage application

It is strongly recommended borrowers stay with the original mortgage lender and close on home loan instead of having emotions upset them unless they absolutely have to transfer or get a loan denial.

Qualifying With A Direct Lender With No Overlays

what are the Qualifying With A Direct Lender With No Overlays

Borrowers who get a last mortgage loan denial or are stressing during their mortgage process and are thinking of changing lenders, please contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. We are direct lenders with no lender overlays on government and conventional loans. We are available 7 days a week, evenings, weekends, and holidays. Over 35% of our borrowers are folks who are changing lenders during underwriting process.

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