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View Full Version : Home and Auto Is it bad to switch mortgage companies late in the process?


The Bad Guy
07-02-2011, 02:40 PM
I'm dealing with a local bank to get a mortage for a new construction. During this time, they have told me false information, are requiring tax documents of the builder, and I've had to have them ammend commitment letters. They are also a huge pain in the ass about some of the work on the house that my family is doing, such as vanity lights, slate in a 56 square foot foyer and various other little things.

I'm debating talking to another bank even though I'm about 2-3 weeks from my closing.

I'm just not comfortable with them at all now.

With the other bank, I can get the same interest rate for the construction loan as I can the fixed term loan. The bank I'm dealing with now is a point and a half higher.

Will it really hurt my credit score that much having another bank go in? I'm sure this first bank is going to run another credit check anyway right before closing.

Plus, my builder deals with this other bank a lot and I can save some coin on closing costs.

I just don't want to screw myself in the long run by switching now.

Has anyone on here gone through anything similar with banks?

Thanks in advance for any advice.

Stewie
07-02-2011, 02:57 PM
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kstater
07-02-2011, 03:59 PM
Whilst building your home, you have: Questioned the credentials of the builder for wanting to put heating registers in the floors, think someone is over-charging for installing water heater, and now say your mortgage company is lying to you. You sound like a dream to work for.

BigMeatballDave
07-02-2011, 04:16 PM
Whilst building your home, you have: Questioned the credentials of the builder for wanting to put heating registers in the floors, think someone is over-charging for installing water heater, and now say your mortgage company is lying to you. You sound like a dream to work for.Well, its his house. He's gotta pay for it. I'd be picky, too.

chiefqueen
07-02-2011, 04:33 PM
When I bought my condo I switched mortgage companies 2 days before closing but that was before the real estate crises.

KCinNY
07-02-2011, 06:09 PM
It's your money, dude.

Screw any mortgage company's disappointment or hurt feelings.

The Bad Guy
07-02-2011, 08:01 PM
Whilst building your home, you have: Questioned the credentials of the builder for wanting to put heating registers in the floors, think someone is over-charging for installing water heater, and now say your mortgage company is lying to you. You sound like a dream to work for.

Yes, you're right. I should just listen to the first thing the mortgage company, builder and HVAC guy tells me and consider it gospel.

You sound like complete sucker. So when you want to start letting me spend your money, you can tell me how to spend mine.

And just so I can laugh at how naive you are, the HVAC guy was 4 grand over quote compared to 2 others who gave me quotes, the builder agreed to put returns in the ceiling, and the mortgage company has told me 3 different stories 3 different times I've talked to them about what to pay off, what to put in for the appraiser and now want my builder to submit tax documentation.

Sorry for asking questions about the biggest purchase I'll ever make.

The Bad Guy
07-02-2011, 08:07 PM
When I bought my condo I switched mortgage companies 2 days before closing but that was before the real estate crises.

I guess my concern is how much did it delay the process? I don't care about hurt feelings, or anything like that.

What I care about is getting the same story from the people involved in the process and securing the lowest rate I can.

BigMeatballDave
07-02-2011, 09:49 PM
I wouldnt think its much different than a mortgage company selling your loan to another finance company.

The Bad Guy
07-03-2011, 12:15 AM
I wouldnt think its much different than a mortgage company selling your loan to another finance company.

I haven't signed anything yet with the mortgage company. Got a commitment letter, but haven't sent the final plans or cut the check for the appraisal yet.

I'm just on a time crunch right now because the contract for the land states it has to be paid out by the last week in July.

I'm going to meet with another bank on Tuesday to see about the process with them and how long it could take should I elect to back out of the deal.

Dr. Facebook Fever
07-03-2011, 01:10 AM
You're the one responsible for the payments, no one else. Mortgage companys should be fighting for your business. You have to do what's right for you, screw them. It's not personal it's business... take care of your business by doing what's best for you, period.

ChiefGator
07-03-2011, 05:13 AM
And, just having another check on your credit shouldn't hurt you that much. Especially if it is for the same type of mortgage as another bank. So, I wouldn't stay away from that just based on having another credit check.

angelo
07-03-2011, 06:53 AM
I would definitely look into switching. I would caution that if you do not have great credit it could cause you some headaches. I recently went through a refinance and switched companies. The extra credit checks dropped my total score by 30 points. So if you are on the brink of good vs. great credit it could affect you.
The banks are very leery to loan any money right now.

Ang

58-4ever
07-03-2011, 07:16 AM
If you can afford to spend all the extra time doing all the paperwork and jumping through all the hoops again, I would say do it. I will caution you that all banks are a pain in the ass to some degree, especially when it comes to closing mortgages nowadays. If you're not dealing with small bank issues, you'll soon be dealing with big bank issues.

I had to close my mortgage last year because my "specialist" went on vacation and "forgot" to assign my file to someone else. I had to tell the movers to turn around when they were halfway to my new house. Then they had to put all my stuff back into storage. On that note, fuck you Bank of America.

The Bad Guy
07-03-2011, 07:55 AM
I would definitely look into switching. I would caution that if you do not have great credit it could cause you some headaches. I recently went through a refinance and switched companies. The extra credit checks dropped my total score by 30 points. So if you are on the brink of good vs. great credit it could affect you.
The banks are very leery to loan any money right now.

Ang

I'm around 780, so I'm not too worried about dropping a bit.

I'm just going to go talk to them on Tuesday and see what their speech is and how long the process can drag out.

The Bad Guy
07-03-2011, 07:56 AM
If you can afford to spend all the extra time doing all the paperwork and jumping through all the hoops again, I would say do it. I will caution you that all banks are a pain in the ass to some degree, especially when it comes to closing mortgages nowadays. If you're not dealing with small bank issues, you'll soon be dealing with big bank issues.

I had to close my mortgage last year because my "specialist" went on vacation and "forgot" to assign my file to someone else. I had to tell the movers to turn around when they were halfway to my new house. Then they had to put all my stuff back into storage. On that note, **** you Bank of America.

Note to self, avoid Bank of America.

The Bunk
07-03-2011, 08:04 AM
If you're really uncomfortable, do it. I just closed on my house a month ago, and I started seeing warning signs right around the time you have as well. I didn't end up doing it, because I thought I didn't have enough time. I really wish I would have.

I ended up having to walk the douchebag through the entire process myself. The guy was the most inattentive prick I've ever dealt with. You'd think for the amount of money I was forking over to his company, he wouldn't have been so put out about answering a few questions I had.

Find someone you like, and go with them.

The Bad Guy
07-03-2011, 08:14 AM
If you're really uncomfortable, do it. I just closed on my house a month ago, and I started seeing warning signs right around the time you have as well. I didn't end up doing it, because I thought I didn't have enough time. I really wish I would have.

I ended up having to walk the douchebag through the entire process myself. The guy was the most inattentive prick I've ever dealt with. You'd think for the amount of money I was forking over to his company, he wouldn't have been so put out about answering a few questions I had.

Find someone you like, and go with them.

What started rubbing me the wrong way was how the underwriter was sending her emails that she forwarded to me and told me things that completely contradicted what they said.

We had money to pay the remaining balance off on my 09 Highlander. She told me a week ago not to pay off the car, to wait until closing. Then she calls me in a huff last week that I still haven't paid the car off and what am I waiting for? I said to her, you told me not to, and she was just like oh.

Thanks for all the replies guys. It's much appreciated.

Mosbonian
07-03-2011, 08:35 AM
I would definitely look into switching. I would caution that if you do not have great credit it could cause you some headaches. I recently went through a refinance and switched companies. The extra credit checks dropped my total score by 30 points. So if you are on the brink of good vs. great credit it could affect you.
The banks are very leery to loan any money right now.

Ang

This is the one problem I always had with the FICO formulas when they were first floated around in the Credit industry. I understand the need to account for multiple inquiries which means a possible debt overload situation, but i think the formula is way to restrictive.

Mosbonian
07-03-2011, 08:38 AM
Frank:

It's your money, now and going forward. If you feel uncomfortable now, think how you would feel if you didn't do your own due diligence and it turned out to be a crappy situation. You'd be mad that you didn't follow your instincts.

Your FICO score of 780 is fine, and any hit you take should be minimal and shouldn't affect your loan rate either.

wazu
07-03-2011, 09:26 AM
I did this once at the 11th hour. The company kept screwing up and was holding up the process with all kinds of BS. Didn't regret it, no negative effects.