Can You Change Lenders With Three Weeks To Go
A reader asked if it is possible to switch mortgage lenders with fewer than 3 weeks before closing to try for a lower payment. Short answer. Often yes. Smart answer. Slow down and follow a plan so you do not blow your contract timelines or lose money.
Start With Your Real Estate Agent And Your Contract
Your purchase agreement controls your timelines. Many contracts set a deadline for final loan approval and appraisal completion. Missing those dates can put you in default of your sales contract. Ask your real estate agent to review the financing and appraisal deadlines and to confirm what must happen to keep you on track. Your real estate agent also knows local customs for appraisal ordering and how flexible sellers are about extensions if you need one.
Press Pause On The Appraisal If You Can
Once the current lender orders the appraisal you may owe the fee even if you switch mortgage lenders. If it is not ordered yet, ask the lender to hold while you shop. If it is already ordered, ask when it will be delivered and whether a different lender could use it.
With a conventional loan the appraisals are usually tied to the lender that ordered them. A new lender may require a new appraisal even if the first one just came in. FHA and VA loan appraisals stay with the case number and can be transferred to a new lender, which reduces the risk of paying twice.
Shop The Whole Package Not Only The Rate
Ask your current lender for an updated Loan Estimate and a rate quote for the same lock period. Then get written Loan Estimates from any lender you are considering. Compare these items side by side. Particularly compare the following:
- Interest rate
- Discount points or lender credits
- Origination and underwriting fees
- Mortgage insurance cost and type
- Rate lock expiration and the cost to extend
- Prepaid taxes and insurance and escrows
- Total cash to close and APR
A tiny rate cut can be wiped out by added points or high lender fees. You want the lowest total cost for the time you expect to keep the loan.
Give Your Current Lender A Chance To Match Or Beat
If you you like your current lender’s communication. Use that and communicate with them that you might switch mortgage lenders. Share the better offer and ask if they can match the rate or reduce costs.
Confirm The New Lender Can Close On Time
If you decide to switch, you need a lender that can move quickly without surprises. Ask direct questions.
- Can you approve and close within my contract timeline
- Do you process and underwrite in house or broker the loan out
- When will you order the appraisal and what is the expected turn time
- What documents do you need from me today
- What is your plan if the appraisal delivery runs late
Three weeks is often enough for a well organized lender, especially on a conventional loan with a clean file, but you must verify their timeline in writing before you commit.
Understand The Side Effects Of Switching
- Credit pull. One more hard inquiry is usually fine if it is within a short shopping window, but expect a small temporary score impact.
- Employment and assets. Every lender will reverify employment and review bank flows. Be ready to reupload everything.
- Condo or complex loans. If you are buying a condo or a property with special features, a new lender may require a project review that adds days.
- Rate lock risk. If your current lock will expire soon, you may need a rate lock extension or a quick new lock. Build a few buffer days into your plan.
A Practical Step By Step Plan
- Call your agent today and review your contract dates.
- Ask your current lender to pause the appraisal for 48 hours while you shop.
- Request fresh Loan Estimates for the same lock period from at least two competitors.
- Compare rate, points, fees, mortgage insurance, and lock terms. Look at total cash to close and APR.
- Ask your current lender to match the best offer or improve closing costs.
- If you switch, pick a lender that proves in writing they can close on time and start the new file immediately.
- Keep your real estate agent and the seller informed so expectations stay aligned in case you do decide to switch mortgage lenders.
Bottom Line
It is not too late in many cases to switch mortgage lenders, but do not risk your closing just to shave an 1/8 of a point if the total costs or timeline make that savings disappear. Shop smart, compare the entire deal, and keep your team looped in.
If you would like help comparing quotes or you need introductions to a responsive lender and a strong local real estate agent in your market, reach out and I will connect you with vetted pros who can keep your purchase on track.
