Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Not long ago, I was lender #2, was told so sorry, you've done a great job, but we are closing with xxx lender. Where I work, we don't mess around, we issued an adverse action letter (incomplete loan app). That file had a loan commitment letter on it and we had most conditions cleared, including an appraisal. I always bite my tongue, knowing no one is going to care more than I will about their loan, and I wished them best of luck. Don't you know, one week before their closing I get a call......."is there any way we can resurrect our loan app?". (No). This other lender can't meet our closing date and it's going to cost us $100 a day, they are telling us we are at least two weeks out.
Life has a funny way of coming back at you. Call it what comes around goes around, treat others as you wish to be treated, and 1000 other ways to say, don't be a douschebag, life has a way of righting itself, so the OP should be on the lookout for fair play known as turnabout (how many more trite ways can I repeat myself, lol?)
Everyone here gets that it's human nature to want the best possible rate, but it shouldn't be at the expense of others. Pfhtex was dead on, not only burning thru someone else's overhead, where margins have never been so low, but your loan is putting your neighbor or your coworker behind, working on a loan that will never close. It's fine to have two on the hook until time to lock things down, it's all fair game. But it's time to cut bait or pay for two appraisals.
We decided to go with the builder's lender because they threw in incentives our other lender couldn't as well. However, had there not been the extra incentives we would have gone with the outside lender even with a higher interest rate, just because he has been SO thorough, honest, and transparent, while the builder's lender has been anything but.
We decided to go with the builder's lender because they threw in incentives our other lender couldn't as well. However, had there not been the extra incentives we would have gone with the outside lender even with a higher interest rate, just because he has been SO thorough, honest, and transparent, while the builder's lender has been anything but.
If you are going with the builders lender then why are you going.through processing with the other broker?
Do they know.you are locked.with someone else?
Can you elaborate on what the builder's.lender has done that is shady?
Is there a reason to be such a bully? Sure, you seem very knowledgeable on this, but we are not. We are in our early and mid-20s, first-time home-buyers that know NOTHING about this process except what people tell us. We've read about people being screwed. We have friends that have been screwed. This is the biggest purchase of our lives.
Pfhtex (and Smart Money) know what they're talking about, and are just giving you some serious straight talk because you are screwing your loan officers, probably unknowingly, but screwing them all the same.
Smart Money - you forgot "Karma is a *****" in your last post.
We decided to go with the builder's lender because they threw in incentives our other lender couldn't as well. However, had there not been the extra incentives we would have gone with the outside lender even with a higher interest rate, just because he has been SO thorough, honest, and transparent, while the builder's lender has been anything but.
That's great you finally made your decision. But I feel for the LO who got dumped. Especially since he was the better professional, taking his time to explain everything to you so, as first time home buyers, you were educated and felt comfortable and secure going into the complicated and sometimes scary mortgage process. I wonder how much time he spent developing estimates, answering all your questions, and helping educate you while the other LO, by your own admission, did very little?
When all a loan officer has to do to get someone's business is throw a few extra dollars at them, what does that tell you about his/her dedication to providing you with the best service? In this business, experience, dedication and service are essential, ESPECIALLY since you are first time homebuyers, because all kinds of things can go sideways getting a loan from application to close. But as the saying goes, you get what you pay for.
I know saving money is important, especially when you are young and just starting out. And I know the mortgage process is a very complicated thing to understand. It's great that you've asked lots of friends and forums for answers. But in the end, it's your mortgage professional who should be providing you the answers. Seems like one was and one wasn't. Only you can decide how much someone's services are worth to you though.
Pfhtex (and Smart Money) know what they're talking about, and are just giving you some serious straight talk because you are screwing your loan officers, probably unknowingly, but screwing them all the same.
Smart Money - you forgot "Karma is a *****" in your last post.
And how was I supposed to know this if I've never done this before? I let each lender know that i was looking at others. What is the point of shopping for lenders then?
That's great you finally made your decision. But I feel for the LO who got dumped. Especially since he was the better professional, taking his time to explain everything to you so, as first time home buyers, you were educated and felt comfortable and secure going into the complicated and sometimes scary mortgage process. I wonder how much time he spent developing estimates, answering all your questions, and helping educate you while the other LO, by your own admission, did very little?
When all a loan officer has to do to get someone's business is throw a few extra dollars at them, what does that tell you about his/her dedication to providing you with the best service? In this business, experience, dedication and service are essential, ESPECIALLY since you are first time homebuyers, because all kinds of things can go sideways getting a loan from application to close. But as the saying goes, you get what you pay for.
I know saving money is important, especially when you are young and just starting out. And I know the mortgage process is a very complicated thing to understand. It's great that you've asked lots of friends and forums for answers. But in the end, it's your mortgage professional who should be providing you the answers. Seems like one was and one wasn't. Only you can decide how much someone's services are worth to you though.
The LO knew our situation and thought it was best for US in our situation to go with the builder's lender financially. I showed him all the paperwork from the builder's lender and he couldn't believe what they were offering us.
And how was I supposed to know this if I've never done this before? I let each lender know that i was looking at others. What is the point of shopping for lenders then?
That's a valid point. I think the mortgage folks on here feel that you let it go on too long, and caused the 'good' broker (the one who didn't get your business) to put more time into it than was reasonable.
I will suggest this: You can still do this 'good' broker a solid. Every single time you get the opportunity, send him a referral. Go online and write great reviews. Next time you think of refinancing, call him first.
I get that money talks, and I understand why you would go with the 'lousy' broker. When I was younger, I would have done the same. But now, older (and maybe wiser), I've learned that it's not always about the money.
I can honestly say that I've paid more for a new car simply because one sales personal treated me better than others, but couldn't match the deal I was offered by schmucks. I can honestly say that I've paid a few hundred more in closing costs to close a mortgage with a company that made my life super-easy. Would I pay a higher interest rate, or thousands more? Nope, I'm not that loyal. But I value service and honesty above nickels and dimes.
Comparison shopping is fine, but you shouldn't "be working with" two different lenders to the point where you are getting commitments and going through processing and talking about scheduling appraisals. Once you do your comparison, you pick one and move on.
It sounds like the one you didn't use was gracious enough and I agree that you could certainly still refer people even if you didn't end up closing the loan with them. But of course for most people, it will come down to whether they can offer a competitive product.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
