jm1495 wrote: ↑Fri Aug 07, 2020 2:23 pm
Be cautious in starting a loan process with one company and jumping to another one to save a $100. I just spoke with a processor who provided a great rate but his company has now stopped taking leads that come through from bogleheads because of people jumping ship. As the phrase goes "Pigs get fat but hogs get slaughtered."
I am currently at 4.125%. I am in the same boat (or should I say jumping ship), although because my understanding of the system was incorrect.
Today I went to local mortgage agent, and was quoted 2.75% rate at no cost. I filled up online application, and also uploaded the W2s, Fed returns, bank stmt, etc. I was told that I will get my LE docs tomorrow (Saturday). He also said that the rate will be locked when the appraisal is ordered.
Since today's rates are lower, I was shopping, and Owning offered 2.99% at no cost. The mortgage originator was willing to give LE right away. So I thought of getting LE so that if the local agent messes up, I will at least have a backup. The Owning guy filled up application on the phone, and generated LE. He then proceeded to explain it to me as I logged onto their system, he and asked me to sign it. When I said I need time to sign, he was very upset for wasting his time. I said his rate is higher than another quote, and he said he will match it if I produce another LE. I was pressured to sign it after a while. He has now asked me to upload W2s, paystubs, bank stmt, etc.
However now I do not know who is the one exploited here!
1. As a member of BH, I really thought it's fair to get LE from multiple lenders before making the final decision. Was I wrong?
2. I am not sure whether I have to proceed with Owning now. Can I abort the process by not uploading the required docs. Will I be in trouble? That guy maybe calling me soon. If I upload the docs, and abort the process later; will that get me in trouble?
3. Even though the local agent is quoting me low rate, I wonder whether he should have asked my docs w/o LE. Is that fair? And can he realastically lock the quoted rate if his LE is not ready till Saturday?
This whole process is so confusing to me. And it gets more complicated as these are no-cost loans I guess. The Owning guy is not even asking for a deposit for appraisal. The whole process is kicking in after a few signatures. I just don't know how do I control it.