Is this lender mad at me for shopping multiple lenders? Is my online lender scamming me with too-good-to-be-true rates?

Hey Reddit, let me get your opinion on this. (questions bolded if my post is tl;dr)

I’m having a house built and I’m shopping mortgages (780 credit score, zero debt), and I planned to lock in my rate today. After using the BankRate and NerdWallet mortgage tools, I found the best rate I could find from an online lender (you know, the one where the CEO fired a bunch of people over zoom), locked it in. I then called up the two other lenders who I was shopping rates with, who quoted me higher rates yesterday.

I told them that if they could beat the best offer I had then I would lock with them today.

Well, the first lender (who I previously worked with on a refinance on my last home) didn’t believe I got such a good rate, told me that the lender would never, could never lock it in at that rate. I told him, I already locked it in, and he replies “it sounds like you’ve already made a decision to work with another lender?”

Uh, no, I locked at this lender because it was a great rate, and because of the crazy volatility we’ve seen in rates the past week. He replies, “if we lock a rate for you I need to know that you are committed to do business, we won’t put all the time and effort into your purchase if you still plan to shop.” Uh, is he mad at me for shopping multiple lender or for locking in a rate with another lender? My online lender’s website even said something to the effect of “don’t worry, even though you’re locked in, you can always bail before your appraisal is complete!”

So, firstly, did I do something wrong here? Am I not supposed to lock a rate until I’ve decided to go with that particular lender?

Well, anyway I told him again, the bottom line for me is price, and that if he can beat the best rate I can get today, then I’d lock with him, today, and bail on the other one. Well, he continues, “there is no way you got that rate, you’ve got to be reading that wrong. Are you sure it’s not an ARM” Yes I’m sure, here’s my loan estimate, take a look.

After this, he blows up my inbox, with multiple one-line emails: “You should run with that offer and never look back – and hope it’s a real offer.” … “30 year rates are not at that %” … “I have not had one client have a good experience with that lender” … etc. Me, literally confused, not sure how to reply to the onslaught of emails… How can it not be a real offer? It’s the rate they advertised on NerdWallet today…

Isn’t a locked in loan estimate a semi-binding agreement that could really only fall through if my situation changes, or I misrepresented myself? Is this not a “real offer” from the lender?

Well, he ended our conversation with a “as stated, take it and run and hope that it’s a real offer” Wow, ok. Thanks.

The second lender, the builder’s in-house lender, couldn’t come anywhere near matching the rate (builder’s in-house rate is high and doesn’t make up for the incentive they offered), but offered to take a look at my loan estimate to see any discrepancies.

He said it looked completely clean, no sneaky hidden costs, but no idea how they’re able to offer that rate. Then, with a “I typically don’t do this…” he started kinda badmouthing the online lender about being in the news, and how “they might not be a company very much longer.”

The loan estimate shows that they plan on selling my loan to another servicer, so even if they aren’t a company much longer, does that hurt me?

Thanks!

submitted by /u/skeptibat
[link] [comments]

Hey Reddit, let me get your opinion on this. (questions bolded if my post is tl;dr) I’m having a house built and I’m shopping mortgages (780 credit score, zero debt), and I planned to lock in my rate today. After using the BankRate and NerdWallet mortgage tools, I found the best rate I could find from an online lender (you know, the one where the CEO fired a bunch of people over zoom), locked it in. I then called up the two other lenders who I was shopping rates with, who quoted me higher rates yesterday. I told them that if they could beat the best offer I had then I would lock with them today. Well, the first lender (who I previously worked with on a refinance on my last home) didn’t believe I got such a good rate, told me that the lender would never, could never lock it in at that rate. I told him, I already locked it in, and he replies “it sounds like you’ve already made a decision to work with another lender?” Uh, no, I locked at this lender because it was a great rate, and because of the crazy volatility we’ve seen in rates the past week. He replies, “if we lock a rate for you I need to know that you are committed to do business, we won’t put all the time and effort into your purchase if you still plan to shop.” Uh, is he mad at me for shopping multiple lender or for locking in a rate with another lender? My online lender’s website even said something to the effect of “don’t worry, even though you’re locked in, you can always bail before your appraisal is complete!” So, firstly, did I do something wrong here? Am I not supposed to lock a rate until I’ve decided to go with that particular lender? Well, anyway I told him again, the bottom line for me is price, and that if he can beat the best rate I can get today, then I’d lock with him, today, and bail on the other one. Well, he continues, “there is no way you got that rate, you’ve got to be reading that wrong. Are you sure it’s not an ARM” Yes I’m sure, here’s my loan estimate, take a look. After this, he blows up my inbox, with multiple one-line emails: “You should run with that offer and never look back – and hope it’s a real offer.” … “30 year rates are not at that %” … “I have not had one client have a good experience with that lender” … etc. Me, literally confused, not sure how to reply to the onslaught of emails… How can it not be a real offer? It’s the rate they advertised on NerdWallet today… Isn’t a locked in loan estimate a semi-binding agreement that could really only fall through if my situation changes, or I misrepresented myself? Is this not a “real offer” from the lender? Well, he ended our conversation with a “as stated, take it and run and hope that it’s a real offer” Wow, ok. Thanks. The second lender, the builder’s in-house lender, couldn’t come anywhere near matching the rate (builder’s in-house rate is high and doesn’t make up for the incentive they offered), but offered to take a look at my loan estimate to see any discrepancies. He said it looked completely clean, no sneaky hidden costs, but no idea how they’re able to offer that rate. Then, with a “I typically don’t do this…” he started kinda badmouthing the online lender about being in the news, and how “they might not be a company very much longer.” The loan estimate shows that they plan on selling my loan to another servicer, so even if they aren’t a company much longer, does that hurt me? Thanks! submitted by /u/skeptibat [link] [comments]

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