Getting a new lender before closing?

[Min Kim]

Hey everyone,

So currently we’ve been in the process with a lender who has been difficult at times. One thing that bothers me is that they won’t do a “float down” unless it’s a whole percent, but other lenders allow it one time. With the mortgage rates decreasing, is it too late to get a new lender even though we’ve pretty much turned in our paperwork and “locked” in at 4%? If we back out with them, what kind of fees could we be looking at?

[Stephanie P.]

Originally posted by @Joaquin Camarasa:

Hi,

I have a client that recently decided to switch lenders in the middle of the transaction. He did it two weeks after the purchase agreement. I can tell you that in his specific case, He only lost the cost of the house appraisal which was about $500, no penalty fee. At this point he realized of the hidden fees his lender was charging and I gave him some options to compare with. He ended up switching lenders. 

 Are you sure the fees were hidden and not just overlooked by the borrower?  In these days of uber transparency, I find it hard to believe that anyone would risk their NMLS license and the fines associated with not disclosing fees.