- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (8)
- Sherri Sherpy, "MN Mortgage Mom"
- Contributions:476
Dan2k, even if the current lender pulled the FHA case number and you decided to make a switch, they MUST release that case number to the new lender. You have no worries with FHA or getting into any kind of trouble. The lender, may however attempt to collect a lock-in fee or a cancellation fee. Check the paperwork that you have signed. If you signed a Mortgage Loan Origination Agreement (MLOA) or a lock in agreement, you may be on the hook for the fee. You CANNOT get into trouble by starting the loan process with another lender. You are free to use the lender of your choice. But I would make sure to check what paperwork you have signed and if you may be obligated to pay any fees.
Thank you Joe and Greg! :)
- Cory Blackburn, "loansbycory"
- Contributions:14
- Charles Dailey, "charlesdailey"
- Contributions:7
Be aware of this though, you are in Minnesota. So you're lock in agreement is goverened by statute. The statute is MS 47.206 (interest rate or discount point agreements). If you google 47.206, it should come up first. Be sure to review any contracts you've signed and cross check them against this statute. Also, there is a code of conduct that MN loan officers must abide by. Review Minnesota state statutes chapter 58 to see if you're "bad experience" is goverened by law. Perhaps your lender has more to be concerned about than a fee.
- PrimeSource Funding
- Contributions:17
You can switch lenders at any time. Even if they ordered an FHA case # and refuse to transfer. If you write a letter saying you do not want to use Lender A and you want to use Lender B, then Lender B can send that in directly to the FHA and have the case number reassigned. You would not have a fee to do this. Let me know if I can be of further assitance.
- Greg Darlin, "Greg Darlin"
- Contributions:3238
Joe,
Diddo on Sherri and the loss of a application fee if paid.
- Joe Cafiero, "Joe Cafiero"
- Contributions:3221
If no case number has been assigned then there is nothing to transfer you are free to go with whom you want. If you paid an application fee, you probably will not get that back. I would suggest contacting Sherri Sherpy. She is local and her link is to the right.
- shapiroamg
- Contributions:3058
switch away. if you paid for an appraisal you may have lost that fee.
- Timothy Sutherland, "SunTrust"
- Contributions:619
The "application" transfer fee is up to 0.5 points if the appraisal has been underwritten and up to 1 pt if both the appraisal and credit have been underwritten. If neither event has occured then the "application transfer fee" is $0 ($ZERO).
Since the case number hasn't even been ordered, the appraisal has definately not been underwritten.
Since the case number hasn't even been ordered, the appraisal has definately not been underwritten.
Want to change the lender because of bad experience.
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.