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can i change lenders after an appraisal because he is giving me a higher interest rate?

we have an offer accepted i have been pre approved with this lender who initially offered me a 3.5% rate on a first transaction that felt thru due to a very low appraisal and since we are doing  an FHA loan we couldnt go thru it,  now we are on a new one appraisal came in alright seller accepted the purchase price and we are good to go to the loan processing part.  i have already received disclousres and gfe from the lender with a NOT LOCKED interest rate of 3.625%  i am not happy with it since we were offered 3.5 before and about 3 months prior to that we were quote at 3.25 with a different lender, who we didn't stick with because he stop responding for a while.  we aren't getting any lender credits to close.  i need tips on how to negotiate my interest rate to at least the 3.5 we were offered in the first transaction.  i also not sure if i can switch lenders ( i feel reluctant about asking my agent because it happens to be the lenders wife).  i have put down a 5k deposit to  the escrow co.  i am concerned with what if anything 
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March 28 2013 - Menlo Park
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here are the numbers:  

purchase price 395k  with nolender  credit funds needed to close 22k and monthly payments of 2850. ( includes principla, taxes and mortgage insurance)
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March 28 2013
You can change lenders at any time prior to signing the closing documents for the loan. The questions is, will/can the seller tolerate a delay in closing, and how much will you have to pay for that delay? Most sellers are making plans to move. If they are already committed, you may have to pay for any expenses they incur because of your decision, or they may cancel the purchase agreement due to your failure to meet timelines.

Be careful! This is a slippery slope. Make sure you are talking with your Realtor about the consequences of such a decision before you make it!

Also, the Peninsula (including Menlo Park) is experiencing a strong sellers market for homes valued around $1.5m and below, even higher in some places. It's hard enough to get a seller to agree to an FHA purchase in this climate, without throwing a last minute wrench into the equation. Make sure that any decision you make is worth potentially losing the transaction. After all, you could refi at a later time if you don't like the rate, right? Then again, if you can't get the rate you want (like one previously available), maybe you could just chalk that one up as a "I should have moved when the moving was good" experience.

David
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March 28 2013
You can switch lenders if you want to, however, you MAY be required to pay for another appraisal from the new lender. It would also depend on if the seller is cooperative with you making the lender change. Depending on your purchase contract language, you may have to notify the seller of any changed to your financing. I would propose this question to both your agent and the lender to assist you in buying down the rate. It's most likely that interest rates have just gone up from your original purchase contract. If you didn't lock, you would be floating your rate until just prior to closing.

Chances are that your agent and lender will want to cooperate with you to get the transaction closed. Best of luck!
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March 28 2013
Interest rates have been steadily increasing.  If you don't lock and stick with the lender you locked with, you will need to accept the interest rates being offered currently.

Go into the Zillow Mortgage Marketplace and enter your scenario.  You'll see what plenty of lenders are offering today and be able to determine if 3.50% or better is available from anyone. 

Good luck!
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March 28 2013
How much is the loan amount.  Depending on how much of a lender credit the loan officer is providing, that does sound like a high rate.
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March 28 2013
Related Questions
can i change lenders after an appraisal because he is giving me a higher interest rate?
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March 30 2013 | 35 answers
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