Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

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dcw213
Posts: 158
Joined: Sun Dec 16, 2012 3:04 pm

Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

Post by dcw213 » Mon Aug 05, 2019 8:34 am

I have posted a few questions related to my first time home buying experience currently underway and the responses have been extremely helpful in helping me navigate the process. So firstly, thank you all!

I thought I was pretty much set, but a new question has arisen. I locked my rate 3 weeks ago with a large and reputable lender. Important to note, I had also been talking with a credit union and started the origination process but they seemed less competent and promised deadlines in the preapproval process were missed without communication, so I decided to just go with the large shop to get it done with less stress. Since that period rates have dropped materially. I believe I could get 35 basis points off my rate today by going elsewhere or attempting to renegotiate.

Initially I had thought I should just shrug and honor the lock, close, and then look for a refi if the numbers made sense. However I work with many with experience on the origination side of the industry and they say I should absolutely hustle and try to negotiate down or go somewhere else. I am concerned about making sure closing goes smoothly so have been hesitant to mess with the process. Colleagues assure me that 30 days is plenty since I am a fairly easy borrower and to not be stupid and waste money now. At this stage I have paid for an appraisal and a credit run but that is all, I do not believe I have any contractual obligation or face any penalties from going in a different direction.

I would greatly appreciate any opinions or advice based on experience. Thank you again.

megabad
Posts: 2565
Joined: Fri Jun 01, 2018 4:00 pm

Re: Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

Post by megabad » Mon Aug 05, 2019 5:34 pm

dcw213 wrote:
Mon Aug 05, 2019 8:34 am
At this stage I have paid for an appraisal and a credit run but that is all, I do not believe I have any contractual obligation or face any penalties from going in a different direction.
So you would have to pay for a new appraisal in most cases if you switch lenders. So I would probably try to just renegotiate with the same lender. That said, if you don't mind paying for a new appraisal, 30 days is enough time for any skilled local bank to process the purchase assuming you are already approved or can get full approval like today. I have never encountered a credit union or non local bank that could actually meet a 30 day close. I have the same luck you do (disorganized and lack of communication).

Topic Author
dcw213
Posts: 158
Joined: Sun Dec 16, 2012 3:04 pm

Re: Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

Post by dcw213 » Mon Aug 05, 2019 6:50 pm

Interesting, thanks for the feedback. I had assumed that the appraisal I bought could be carried to a new lender but have not verified that.

nolesrule
Posts: 1450
Joined: Thu Feb 26, 2015 10:59 am

Re: Renegotiate Rate 30 Days from Closing? (First Time Homebuyer)

Post by nolesrule » Tue Aug 06, 2019 7:43 am

dcw213 wrote:
Mon Aug 05, 2019 6:50 pm
Interesting, thanks for the feedback. I had assumed that the appraisal I bought could be carried to a new lender but have not verified that.
Nope. Read the fine print on the appraisals. They can only be used by the the person/entity who ordered it... and that's usually the mortgage company. It's a great way to try to mentally lock you in with a lender through sunk cost mentality.

If rates stay down or go lower, consider a no-cost refinance.

We're 16 days from a closing and we've been watching the rates fluctuate around the rate we locked in. And I feel like kicking myself every time it drops below our rate. But at this point, there's not much we can do unless we refinance. The rates haven't dropped quite enough for that to be worthwhile yet.

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