When a lender lowers their rates below the competition, they tend to get a lot of business. Go figure huh?
What most borrowers don’t realize is that low rates often entail long waits. Lenders get big backlogs, service levels decline, underwriters get overworked, and lenders stop making exceptions.
More importantly, quick approvals and fast closings become a chore. With some lenders, 10-15 business days is usually enough time to close. But, when a lender has the best rates in the market, 10-day closes become a gamble.
The worst part, from a brokers’ perspective, is that some lenders don’t believe in communication. If a lender has a 24 hour turnaround policy, and then takes 5 days to respond to your application, you’d think they’d notify you of such delays in advance. Unfortunately, some lenders consider that an unnecessary courtesy.
In general, best-rate providers are fine for longer closings or refinances. But if you’re a last minute shopper or a procrastinator, don’t expect priority service with your rock bottom rate.
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