Is it bad to switch mortgage companies late in the process?

[The Bad Guy]

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.

[The Bad Guy]

Originally Posted by 58-4ever

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]

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]

Originally Posted by The Bunk

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]

Originally Posted by angelo

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]

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]

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.