presto987 wrote: ↑Thu Oct 29, 2020 9:56 pmYou may have done this already, but you should check with your Better “mortgage expert” whether the appraisal truly is required. Better always charges for an appraisal, but they refund it if an appraisal isn’t done. The mortgage expert can check whether you qualify for a waiver. If so, then you will get a refund after closing (or when you withdraw your application if you don’t close with them).Can't Wait wrote: ↑Thu Oct 29, 2020 7:44 pm My two best offers are from Better and LenderFi.
Better is giving me a 2.5% rate with costs at $422, but I have to do an appraisal.
LenderFi is giving me a 2.5% rate with costs at $522, but the appraisal is waived.
My thinking is I should go with LenderFi since the appraisal is waived. I would hate to go with Better and then have some doofus appraiser low-ball our house and then I get stuck paying points or having my credits reduced.
Any negatives with LenderFi? So far, I’ve read that their communication is lacking and there is confusion about how to make the first payment. How does the first payment work with LenderFi? Are they closing just as fast as Better right now?
Usually if one lender gets an appraisal waiver, all of them can. There are some exceptions, e.g. sometimes Freddie Mac grants waivers that Fannie Mae does not, and Better only uses Fannie Mae. Also, if your house is worth over $1 million, make sure the LO enters the home value as $999,999. Anything over $1m automatically requires an appraisal. Some LOs don’t know this trick or forget it.
LenderFi is generally good, but I can think of two negatives:
- Once you lock, you’re really locked. Whereas with Better, they are willing to entertain price match requests almost up until closing. This can be helpful if rates fall or if you just find another competitive lender.
- LenderFi doesn’t like it if you refi within 6 months of closing with them. Well, no one likes that. But LenderFi is the one lender that asks people to sign a document stating that you won’t refi within 6 months or else they will claw back credits. That is probably not enforceable, but My guess is that if you refi within 6 months they may choose to no longer do business with you.
I think LenderFi is closing approximately as fast as Better, based on the datapoints I’ve been reading. Check out the LenderFi thread in this forum for discussion about the first payment.
Thanks for info. Better said Fannie Mae would not grant the appraisal waiver for me, while Freddie Mac did with LenderFi. I had my hopes set on closing with Better based on all the great things I’ve read in this thread. But, I don’t want to risk the appraisal coming back $10k less (or something like that) than the actual value and having that cause a last minute change in the loan estimate.
I’ll check out the LenderFi thread. As long as they sell the loan to a big bank, then everything should be okay for me.