Working with a Mortgage lender isn’t walk in the park. There are chances of disagreement between you and the mortgage lender. For example, any inconsistency in your loan terms or if he/she is delaying the closing date, you think about jump ship. Sometimes, it might get difficult to coordinate with your mortgage lender. However, changing your mortgage lenders during the mortgage process can be risky.
Here are the top three reasons why you need to stick to the best mortgage lenders in MA.
1. Changing Lenders Could Delay Your Timing
Changing the mortgage lender in between will add into the documentation process. The delay in the loan process could hinder your closing date. The person selling the house to you might have other constraints and refuse to sell the house. Delaying another 30 or 60 days on to the home-buying process could get expensive if the seller decides to charge a fee for the delay caused. Switching loans can alter your buying and selling dates.
2. Interest Rates Could Rise
Interest rates are never consistent. They keep fluctuating randomly. Sometimes they dip to a historic low and immediately rates climbing the roof. Think before you plan to shift to another lender who’s offering you a lower interest rate. It is a good idea to lock the rates down. There are benefits and drawbacks to locking in a mortgage rate. It can either protect you if mortgage rates rise or could put you are a loss if the rates fall lesser than the locked rates.
3. Closing Costs Could Be High
Closing costs comprise of a list of charges that you need to pay before sealing the deal on a home. Closing costs are 2% and 5% of the loan amount. The charges include attorney’s fees, mailing fees, credit check fees, and advance payments for homeowners’ insurance and property taxes. Changing lenders can significantly hit the closing costs. The cost of buying a home could raise up by 1% or 2% difference that could charge you thousands of dollars extra. Getting a lower interest rate could look attractive. However, having to pay more money at the closing table could financially rip you off.
Probably, you are ready to take action and end things with your mortgage lender. Before you decide to cut ties with your mortgage lender on a whim, it’s best to look at the pros and cons. Analyze how much will you gain and lose from changing your mortgage lenders before closing on the home you are buying.
If you are looking to get the mortgage loan for your new home, our loan officers will ensure a smooth loan process. As one of the reliable mortgage lenders in MA, Drew Mortgage Associate will help you from the loan application and pre-qualification process to closings.
Read About : How to Select the right Mortgage Lender?
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