How Do I Switch Lenders Last Minute?

[Ben Anderson]

I'm a new investor on the southside of Chicago closing on a two flat next month. I will live in one unit and rent the other one out. I have a 203k rehab loan. I just found out about a program Chicago offers for the neighborhood where I could get about 30k to use for the down payment and purchase price. The problem is: my lender isn't participating with the program and we are about a month away from closing. I'd like to switch lenders so I can access the ~30k in funding. I feel like I'm a jerk for wasting my current lender's time and I want to make sure I keep my earnest money and I'm not sure what else I can be aware of. Has anyone done this before? What are the pitfalls of doing this? I'm planning on making my decision in the next few days.

[Ronan M.]

I can't guide you in the direction to a lender that works with this program.

But do not feel like a jerk or feel bad by doing what is right for you.

Trust me...the banks have no problem tying up loan applications for weeks sometimes months only to drop a bombshell on the last lap and deny the funding. Happens all the time (me included) and many on BP here have written about it. So don't let that worry you. Banks have no problem kicking you to the curb to do what they feel is best for their business.  You have to look out for No 1 as well.