I’ll keep this short! We had an offer accepted last week (11/17). We obtained pre-approval from Bank A. Our closing date is 12/16. We’ve been submitting documents and signed our initial loan estimate with Bank A since then. Our mortgage rate is locked but fairly high (7.375%). We have not completed underwriting, submitted all our statements and documents yet, or gotten final loan approval from Bank A. Given the fairly high rate, I’ve been shopping around for a new one just with preliminary talks. Bank B can offer a better rate at 7%. Is it too late in the game to switch, is this something I can do without penalty? Assuming Bank B can still close by 12/16 of course. Any advice is appreciated.
Not too late at all. I was in a similar boat about a month ago and after shopping rates, got the rate to drop by over half a percentage point.
Quirin said:
Not too late at all. I was in a similar boat about a month ago and after shopping rates, got the rate to drop by over half a percentage point.
Similar timeline as well?
As long as the new bank can meet your deal deadlines, you’re fine. Confirm that before you switch over.
Totally agree! Just make sure to double-check all terms with Bank B before making the switch.
I switched lenders last minute once and it saved me a lot! Just communicate clearly with both banks.
Make sure to ask if there are any fees for switching or if Bank B can handle the paperwork quickly.