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Can I switch lenders if I find a lower interest rate?

I am locked in rigth now at 4.875% with my loan company.  I have found another company with a lower interest rate.  Can I switch lenders before closing?

  • July 16 2013 - Goldsboro
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Answers (8)

I would speak to your current lender many lenders offer a rate renegotiation if rates drop drastically.
  • July 18 2013
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How many "switches" did you have in mind?  Every time you read of a rate lower than your lock rate?  When would you stop shopping after you locked? When would you want the lender you locked with to get serious about processing your loan knowing of your "pattern"? Best approach is to do your research, make a decision, and after you lock be satisifed that you are no  longer at risk. If you can't do that - float the rate - and continue to follow the market every day.

  • July 16 2013
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Sure, if you do not mind ordering another appraisal and waiting an additional 4 to 6 weeks to close.  
  • July 16 2013
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You may always switch, but before you do, check on a few things. See if your rate has been locked in, just because another lender has quoted you a lower rate doesn't mean that rate will be available when it is time to lock. See if there have been ant services rendered by your current lender that they can charge you for. Good luck.
  • July 16 2013
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I would attempt to get your current lender to meet and or beat the price. Note: You might suffer extra fee's if the appraisal has already been completed. Please keep in min most lenders need a min of 21 days to close despite many many claim. Depending on how much time your current lender has eatin up you might not have enough time to still reach your dead line if you switch over. Is that rate FHA or Conventional ? It would be considered slightly elevated if FHA are you buying points, down payment assistance program, 15/30 year note, etc. I would be more focused on overall fee's. If the other lender is quoting you 1/8 point lower it might not be worth your time if you might sell within the next 8years. Let me know if I can help just inbox me.
  • July 16 2013
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If the appraisal has not been completed you can cancel without being charged. If it has been completed, you will just be charged for the appraisal .

Good luck!
  • July 16 2013
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It may be easier to negotiate with your current lender, depending on where you are at in the process and their policies. Ask about a float-down option. Just be aware that there will likely be a cost involved with any changes. Also consider any form of deposit or expense you have incurred with your current lender. For instance the new lender will likely require a new appraisal.
  • July 16 2013
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Of course, you can always switch lenders at any time; however, this might postpone your closing a bit. 
  • July 16 2013
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