timing?

acewendy7777 · Joined: 10 Apr 2008 Posts: 5

I had been approved for a loan @6.80 and then found a lower rate and was approved at 6.25.
When is it appropriate to notify the first lender and let tham know they won't be needed?

m2c · Joined: 03 Aug 2005 Posts: 743

ASAP. Your first lender will be happy to be rid of a fool as quickly as possible. 6.25% (I assume we're talking 30-year fixed) as par is a pipe dream. More power to you if you actually close at this rate without a ton of junk fees.

acewendy7777 · Joined: 10 Apr 2008 Posts: 5

thank you.
it is with penfed credit union. Locked in 2 weeks ago, good until 10/11.
Now at 6.75%
www.penfed.com

fool.

m2c · Joined: 03 Aug 2005 Posts: 743

6.75% with zero is a much more reasonable rate in today’s market. If Pentagon is the same lender as you first mentioned, I’d be curious how they pulled the switch from the 6.25% you mentioned.

Those in the industry might want to visit the site for a chuckle. 6.75%/0 with an APR of 6.625%. Very interested how their abacus came up with this number. Oh well, this from the same outfit that purchase $10,000 toilets!

acewendy7777 · Joined: 10 Apr 2008 Posts: 5

their rate was 6.25%/6.25apr/0pts, approximate closing costs 1350, but i would really like someone without an agenda to tell me the answer to my question-when is it appropriate to tell the first lender they won't be needed?
BTW, not affilliated with the pentagon

liverichly · Joined: 10 Feb 2005 Posts: 195 Location: Orange County, CA

acewendy7777 wrote: their rate was 6.25%/6.25apr/0pts, approximate closing costs 1350, but i would really like someone without an agenda to tell me the answer to my question-when is it appropriate to tell the first lender they won't be needed?
BTW, not affilliated with the pentagon

You should've notified them yesterday.

m2c · Joined: 03 Aug 2005 Posts: 743

Shane,

You may be taking this poster too seriously. You have replied to his/her inquiries before but now his/her side of the “conversation” is silent.

At least the site referenced has moved to posting APRs equal to the note rate rather than below. Actually this APR is possible if part of the deal was that CU paid the first two P&I payments; doubt it. I suppose it’s possible that none of the $1,345 in closing costs includes a single “APR item” but again I have my doubts. Even if that were true the CU would have to close mortgages on the last day of the month or run payment due dates on closing date + 30 days rather than the more typical practice of the first of the month. Again, possible but highly unlikely. The rates posted to their site are competitive today but would have been about 1 discount point underwater for the 90-day lock on the date given. Unlikely but someone at the CU could have been sleeping at the switch.

I’ve never seen text deleted from this site but as I recall from the post you previously answered, there was “terrible credit”, collections, and a recently-resolved tax lien. This would have explained the 6.8% “risk” rate of the other approval.

There is enough “weirdness” to think all these posts are yanks. But in the oft chance everything is “real” and given the “unusual” numbers on the referenced site, the poster may wish to keep silent and leave the previous approval “running” as a safety valve just in case the conforming “lock” falls apart.

liverichly · Joined: 10 Feb 2005 Posts: 195 Location: Orange County, CA

Yeah I thought the post was a little off but I'm not one to jump to conclusions... plus on this website it's very difficult to find a post history for certain posters (which is why sometimes I confuse mortgage professionals with consumers here). I do know that PenFed offers some very good conforming interest rates but 6.25% is a little bit out of whack as of late. Hopefully Wendy is able to secure that financing without any hiccups through the process. I do know that PenFed's underwriting turntimes have been pretty horrendous in the past and even though the intitial approval is given it's not a guarantee of final approval with them.