Business & Finance mortgage

How to Switch Lenders in the Process of a Mortgage

    • 1). Call around and request quotes from several lenders, however do not allow them to pull credit initially. Let them know you are switching lenders and they will offer their best terms and rates up front. Once you choose a lender, set an appointment and apply for the loan. Bring all required documentation with you to the appointment. If your loan is a purchase, notify your real estate agent or builder of the change.

    • 2). If you applied for a conventional loan and the previous company did not order an appraisal, then simply go through the process. If an appraisal was ordered and you do not want to purchase another one, obtain an HVCC (Home Valuation Code of Conduct regulates appraisal practice for conventional loans) certification from the previous investor. The investor is whom your lender was placing the loan with. This may or may not be the same company on your application (page 3 under your signatures). If you applied with a mortgage broker, then most likely the investor is a different company. Provide this letter with your application. The new investor is not required to accept the previous appraisal and may require you purchase a new one, even with the letter.

    • 3). If you applied for an FHA loan, and the previous loan was an FHA loan, you need the FHA case number. This is a seven-digit number unique to your property. Only the lender with this case number can close an FHA loan. FHA expects lenders to cooperate in the transfer of case numbers. If you do not know your case number, your new lender can look it up. If an appraisal was ordered, provide it to your lender, although it is up to the investor to accept it or not.

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