Anyone know of Shea has a deadline for when you can select an outside lender for your loan? We close escrow in about 30 days and have started the process with Shea mortgage but after comparing rates we can get a better deal elsewhere. Any idea if this will be doable or any downside?
Shea: changing from in house lender to outside lender
- Thread starter eclipxe
- Start date
I could be wrong, but I think most lenders can fund in 21 to 30 days.
But, builders often charge $500 - $1,000/day fee if you cause a delay to the close of escrow.
Ask your outside lender to guarantee that they can close on time.
Otherwise, it might not be worth the risk. You can always just refi into a 5/1 later.
But, builders often charge $500 - $1,000/day fee if you cause a delay to the close of escrow.
Ask your outside lender to guarantee that they can close on time.
Otherwise, it might not be worth the risk. You can always just refi into a 5/1 later.
I have heard some lenders want you to wait 6mo to refi if you're doing it with the same lender, but usually nothing stops you from a refi right after close, especially if it's with a different lender.eclipxe said:
BUT, you will notice for many lenders a new purchase loan is 1/8% cheaper than a refi loan. So I would definitely go with the outside lender. 30 days is enough to close. As long as you are operating in good faith and keeping the builder informed on progress, i highly doubt they will fine you for a delay. And some of the large lenders will give you on-time closing guarantee and offer to pay any fees if there is a delay. Builder just wants to close, they don't care much who you use. They just like in-house because it gives them more visibility on what's happening with the buyer and easier to control the process.
sgip
Well-known member
30 days out is tight but not impossible for any outside lender to close your purchase loan. It's going to mean paying for a 2nd appraisal, and getting reams of documentation sent over to the other lender (protip: Look in your "sent" folder. Almost everthing is there to re-send)
Any outside lender should guarantee in writing they will come up with the $$$ for any per-diem late charge. That said, if the builders resources (HOA Management/HOA Insurance/Escrow/Title/Sales Office) begins dragging their feet, it's not the new lenders fault.
Most lenders will want to see 90 days pass before refinancing. As noted, purchase loans tend to have .125% better rates and terms than refi's. Bear in mind that if you plan on refinancing, no one knows where rates will be in 2015 - no one - and you might get caught unable to refi if rates move higher.
As I often experience, once the preferred lender gets a whiff of your move to another lender, as sure as the sun rises every day in the East, magically rates and terms get better. Should you take the bait, when the loan rates should have been good to start with? That's a question you'd have to ask yourself, but time is limited so make a decision and commit to it as early as possible.
My .02c
Any outside lender should guarantee in writing they will come up with the $$$ for any per-diem late charge. That said, if the builders resources (HOA Management/HOA Insurance/Escrow/Title/Sales Office) begins dragging their feet, it's not the new lenders fault.
Most lenders will want to see 90 days pass before refinancing. As noted, purchase loans tend to have .125% better rates and terms than refi's. Bear in mind that if you plan on refinancing, no one knows where rates will be in 2015 - no one - and you might get caught unable to refi if rates move higher.
As I often experience, once the preferred lender gets a whiff of your move to another lender, as sure as the sun rises every day in the East, magically rates and terms get better. Should you take the bait, when the loan rates should have been good to start with? That's a question you'd have to ask yourself, but time is limited so make a decision and commit to it as early as possible.
My .02c
NASCAR24
Active member
Soylent Green Is People said:
Eclipxe this is very true.
If you decide to switch, Shea Mortgage will likely come back with some very competitive rates. I had this happen to me. Also for me, the closing process with Shea Mortgage was smooth, easy and almost transparent. Basically, the final 3-weeks for me was the most relaxed I've been out of all of the three lending closing processes I experienced.
irvinehomeowner
Well-known member
Just tell them your friend SGIP has better rates... and stand back and watch the magic happen.
You need to stick with Shea for 6 months and after that you are free to re-fin.
If you decide to go with outside lender and if the lender is positive in closing on or before your closing date.
I would recommend ask the lender in writing. If lender fail to close, and lender need to pay/reimburse penalty amount.
If you decided to go with Shea mortgage, get approval from letter from outside lowest quote lender and She will match the rate.
If you decide to go with outside lender and if the lender is positive in closing on or before your closing date.
I would recommend ask the lender in writing. If lender fail to close, and lender need to pay/reimburse penalty amount.
If you decided to go with Shea mortgage, get approval from letter from outside lowest quote lender and She will match the rate.
So we closed today, and things couldn't have been smoother - SGIP got us an incredible rate and guaranteed we'd close on time - despite the sale's office warnings, we decided to go for it and it all worked out.
SGIP was such a pleasure to work with and made everything transparent and easy. Even the sales office made a point at our closing to mention how well he handled everything. We're saving > $300/mo for 30 years! Thanks SGIP and thanks TI!
SGIP was such a pleasure to work with and made everything transparent and easy. Even the sales office made a point at our closing to mention how well he handled everything. We're saving > $300/mo for 30 years! Thanks SGIP and thanks TI!
irvinehomeowner
Well-known member
Congrats eclipxe... and I concur, working with SGIP is like magic. 