Mortgage Blog

Please close the loan first

July 1st, 2010 8:52 AM by Eric Fang

Monday, I received a phone call from another agents to check whether her client came to me because that person went to another broker just because the rate
is 0.125%(Yes, we did call each other sometimes, though we compete with each other). Though I did not do the business for that client, I will have
the similar question: what are you going to do when the rate is 0.125% lower again? Change another lender/broker?

I told the agent that my clients are the best clients in all California. We have all the commitments that we will close the loan once we locked the rate
unless the rate is 0.25% or more lower. And we have the commitment at the applictaion time.

About two months ago, when the interest rate was high, one person came to me to do the refi for her high balance 30 yr fixed loan, and I offered her 5.25% for no closing cost. And about two weeks after the application, she asked me why I charged her appraisal twice, and then it turned out that she started application with two agents at the same time. And she dropped that agent and worked with me(I did not know until her email).

And when the loan was about to clear to close, she went to another broker for another 0.125% better rate; and her loan still not closed again.
And her property has value problem and needs to pay down to make if 80% LTV.

The question is if she closed with the first agent again, she would qualify for another refinance in July.

And the main purpose is that she wants to save to refi. And I already noticed that she already wasted $850 appraisal fees on the first two applications.

And for sure, I don't dare to work with her again. When I lock the rate,  I will lock the lowest rate(sometimes, lower than the rate I posted on
my web) on market. But I can not compete with future low market rates.

And If I have more time, I would rather spare the time with my good clients and secure and close the good deal for them.

And the rate may go lower. And can not believe half year of 2010 already passed.

Posted in:General
Posted by Eric Fang on July 1st, 2010 8:52 AM



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