Not The Best Way To Get A Mortgage
Yesterday some of you panicked. I know this even as I suspected it would be when the .75 Fed Rate cut happened.
I became involved in a conversation with borrower who started a loan application for a refi with Lending Tree. As rates went down he moved to a local lender. Then yesterday jumped ship, to his cousins ship.
This is why this could be a mistake. Local lender has the loan approved and locked, ready for documents to be signed. Borrower was quoted a slightly better rate by cousin. Local lender has agreed to match that rate. Already Lending Tree and local lender have pulled the borrowers credit. Borrower has paid for two appraisals.
Cousin has done one thing that I rarely see by professionals in this business. He has lied about Washington DFI laws regarding some of what local lender has done. Why lie? To get the loan of course.
Every Pro that I have seen in this business would have encourged the borrower to finish with local lender. The rate is good the loan is done. To do otherwise puts the borrower in jeapordy. Many unforseen things can happen.
Cousin obviously needs the deal and that is the worse reason to use the Cousin. My guess, the borrower had an hunch about cousin, or would have started there.
