Can I Change My Loan Provider After Locking


Changing mortgage can be inspired by the following factors; search for better market rates, lost paperwork, customer dissatisfaction, unresponsive credit officers, etc. According to the mortgage consumer watchdog, one major cause of uncertainties in this market is the fact that consumers apply and process their loan without shopping around to see if they can get a better deal elsewhere.  Some realize it when in the middle of the process, then abandon the current lender to start all over.  The realization that they can get credit on a lower interest rate compared to where they are makes many moves away.

A study revealed that failure to make lender comparison – which meant shopping around for the loan, cost the borrower a whopping $300 a year. This translates to several thousand dollars over the loan period. The same was reported for those who started the loan process and later realized they could stifle out a favorable deal and then ultimately changed ship along the way. This shows you have already spent to the point you are at. Starting the process all over again means you will have to spend on the same things again. You are advised to avoid shifting from lenders and instead, shop around for a better loan deal before you sign up.

 Is it possible for you to abandon your current lender for another?

The general answer to this question is yes, you can change your lender without any hassle at all. Maybe the primary concern should be if it will make any change, or any sense in the long run. As highlighted earlier, clients will want to shift their dealership for a host of reasons; a dissatisfied customer may decide to give up on the current lender if the latter delays in finalizing or closing the mortgage. If the homeowner is waiting on sale proceeds to catch another lucrative deal, or the buyer is waiting for the mortgage to get that dream home which is not on the market for long. When the lender delays loan closure for whatever reason, the customer gets frustrated with the process and decides to move on to another lender.

Another reason for the change is the lender unresponsiveness. Lousy customer care service will prompt the customer to look for a better service. Excellent customer service is the secret to customer retention, and you are likely to move away out of frustration when dealing with a mediocre customer care team. This is even before you go ahead to talk to your loan agent.

Every mortgage borrower budget for the loan before applying for it; this is done considering the prevailing rates. If any change occurs on the rates, then the whole budget is in disarray, which means the borrower start from ground level to try and establish the payback when the new terms are in effect. You are likely to abandon the whole process and get a whole new one which guarantees stability.

Lender carelessness or total disregard of the customer’s security by misplacing the documents and paperwork is another reason a borrower will want out on the deal. Also, a customer may be enticed away with a lucrative deal. It may be a deal involving promotions, grace periods, or lower rates of interest on the mortgage. This is often possible since lenders are also in a competing business and will try to outdo each other by implementing some programs which are aimed at increasing their customer base, especially if you are aiming to borrowinstant cash loan in Singapore.

Demerits of switching lenders

Changing your mortgage provider mid-process often has downsides. They include; delays. When you change your lender, you move on to the next lender and start the whole process again from scratch. That would mean pulling your credit scores back, submitting documents which you may not have and need looking for, meeting other conditions, since the two lenders may have a different set of requirements to be met. This whole process of redoing creates delays, which implies if you were to hurry for a closing deal, then you are likely to miss it.

The time taken on resubmission does not even count for anything since underwriting takes at least 30 days to finish. Which means you will have to wait for 2-3 months before getting your loan feedback, which may not be positive. Delays could put you in a position of contract violation which can make you lose your home or attract extra fees from the seller for extension allowance.

Also, if a search for a lower interest rate is not your reason for leaving your previous lender, and you had locked a more economical interest with your last lender. There is no guarantee that your new lender will follow suit and adhere to the previous offer you had. The lender will offer you a different package which will be highly dependent on the prevailing market rates. And, if any changes were to occur, the chances are that you will end up having more expensive financing than the one you had earlier negotiated.

The difference in closing costs may inconvenience your movement, especially if they are higher than the previous lender’s total charges. Lenders often have varying costs from various charges they apply depending on the loan terms and the perceived risk levels. Therefore, if the fees to your intended destination are high, you will lose a lot of money from the deal.

Furthermore, moving your application to another lender means you have to pay for another appraisal as well as other distinct fees which you may have already paid earlier.

Whatever reason you have, if you are not satisfied with your lender, move on and get another. Nothing is preventing you even after locking the rates. However, before you settle for a mortgage lender, ensure you carry out your investigation and comparisons so you won’t have to move and end up losing close to $3600 annually in the process.

After the switch, involve your purchase agents and all the parties on the agreement so that you can be able to secure an extension on your contact agreed term period.

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