Changing Mortgage Lenders After You Started Mortgage Process
When you apply for a mortgage loan, you mortgage loan originator will see whether or not your mortgage loan is a doable deal and predict whether or not your mortgage application will get approved from reviewing your overall mortgage application and credit profile. In most cases, you should have no problem in getting a mortgage loan approval and your mortgage loan eventually getting a clear to close and closing. Your mortgage lender will check to see if the mortgage company has any overlays and if they do, he or she will make sure that your mortgage application meets the mortgage company’s overlay requirements. However, there are times when mortgage companies will knit pick the mortgage application during the mortgage process or even deny the mortgage application where you may be forced in taking your mortgage application to another mortgage lender. If you are working with a mortgage broker, the mortgage broker can easily move your mortgage application to another mortgage lender. If you are working with a bank or mortgage banker, you might need to move your mortgage application to another mortgage lender.
Cases Where Changing Mortgage Lenders Is Necessary
If you get denied by a mortgage lender, you need to take your mortgage application to a different mortgage lender. There are reason why your mortgage application can denied after you were told you were pre-approved by your mortgage loan officer. If the mortgage underwriter sees that your debt to income ratio is higher than what your mortgage loan originator has qualified you and the mortgage lender has a cap on debt to income ratio due to their overlays, your mortgage loan can get denied. Another issue where your mortgage loan application can get denied is if the mortgage company has their own appraisal review process and they reduce the appraisal to a lower value and the sellers will not cooperate in the new reduced price. Other cases where your mortgage loan can get denied is if the mortgage loan underwriter asks for an updated bank statement and they noticed that you had a recent overdraft. More cases can be where overtime income used in your pre-qualification can no longer be used because the mortgage loan underwriter does not feel in his or her opinion that your overtime income will continue. There are dozens of more reasons why mortgage loans get denied during the underwriting process and changing mortgage lenders will be necessary.
Bankers Versus Mortgage Brokers Versus Mortgage Bankers
As a mortgage broker, I have dozens of wholesale mortgage lenders to choose from. There has been cases where I have taken my client’s mortgage application somewhere else because the current wholesale mortgage lender was totally incompetent and have come up with new overlays and did not honor what they have told me during the mortgage pre-qualification process. When changing mortgage lenders during the underwriting process happens, there are a few inconveniences on both the mortgage loan originator’s part as well as the mortgage loan borrower’s part.
Delays Caused By Changing Mortgage Lenders During The Mortgage Application Process
Sometimes changing mortgage lenders during the mortgage application process is necessary but in most cases, it works out for the best. Maximum delay normally incurred after changing mortgage lenders during the mortgage application process is a week. A new mortgage application needs to be completed and signed which does not take too long and can be done in a few hours. If it is an FHA appraisal, it takes a day to do the FHA appraisal transfer and normally does not cost any money. If it is a conventional loan, we can request a new appraisal with the new lender’s name on it and request a transfer which might take a few days. All of the documents such as tax returns, W-2s, and bank statements can be resubmitted to the new wholesale lender. Once the new lender has the complete mortgage application along the required documents and credit report, we can normally get an approval within 24 hours. Once we get an approval, we can satisfy conditions and satisfy them within 48 hours and get a clear to close.
If Denied For A Mortgage Loan? Contact Gustan Cho
If you got denied for a mortgage loan or your current mortgage lender is dragging their feet, please contact me as soon as possible at www.gustancho.com . I am available 7 days a week and you can call my cell at 262-716-8151. If you already have an appraisal, I can most likely get your mortgage loan in 7 days or less depending on each particular circumstances.