Conditionally approved for a mortgage, I want a better interest rate. How do I get it?
by Mortgage Rates on Friday, September 24th, 2010 | 4 Comments
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That is accurate for the most part, once a rate is “locked” you cannot change it. A few lenders I have done business with will allow it, but that is not a common practice. BUT, if you did not authorize your banker to lock in your rate then you have the right to raise some H3LL until they make it right. They should not lock your rate without your authorization whether it be written or verbal.
If you signed an application and disclosures at a particular rate, that still does not constitute your authorization of locking in your rate, unless one of those disclosures was a rate lock in agreement.
Also if your banker only does business in house (meaning underwriting, closing and funding) the lock is locked and it probably can’t be changed unless it meets the criteria I mentioned above. If your banker has decided to broker your loan to another lender and locked the rate in, they can broker the loan to another lender and you can start with a new rate lock with a different lender.
Edited for the experienced mortgage professional below:
Banker does not just mean you work for a big bank like WAMU, Wells Fargo, Chase, ETC. Bankers can broker loans like any broker out there, whether they opt to or not is at their discretion… Most Big banks like the ones listed opt to keep business in house, to make more money. But just because you are a banker does not mean you just keep loans in house, I have worked for several bankers that broker the majority of their business. Its to your advantage to be a licensed banker vs a licensed broker, at least in the states I do business in.
Good luck!
Yes it is true. When you say banker you are referring to banks like Wells Fargo, Bank of America, US Bank, credit union etc.. right. Banks lend there money so they will not broker your loan out. But if its a mortgage broker you are with then hes should be able to help you out. Hope this helps
If you can get a better rate just cancel the application. In most cases all that will happen is that you will lose a few hundred dollars in fees. Check your application for cancellation penalties. You can’t be forced to close.
Tell him you can take your business elsewhere, but I would be sure I can get a better rate before you do that. In most cases lenders can
re-lock at least once without a cost. Even if this is the second change, tell your lender to make it happen, if he wants the deal at all.