You are free to do whatever you want to do.
I don’t think that you really do understand where I’m coming from nor do you understand the industry.
I grew up in several industries (not only real estate) where deals are done with handshakes for many thousands of dollars. A commitment is a commitment. I don’t go back on my word.
Trading stocks and bullion, prices move by the second, up or down. I don’t always guess right but I NEVER renege on an agreement.
Your assumption that it’s no big deal to lock a loan and then go elsewhere If rates drop is just a slimy thing to do.
I will be the first one to tell you that there are plenty of slimy, unethical people in the real estate and mortgage industry. Banks and direct lenders have ways of screwing borrowers that people never know about.
The ‘know it alls’ who think that they will always get the best rate by going to a ‘direct lender’ are just ignorant.
Your attitude is I’ll screw them before they screw me.
Mortgage Brokers are regulated and similar to insurance brokers, are compensated based on the loan amount, and any excess credit MUST, MUST be passed along to you. there is no longer any incentive to upsell anything to a borrower, that the slimeballs were allowed to do a few years ago.
A direct lender/bank does not have to play by the same rules as brokers. Their misleading pitches sound wonderful to the foolish.
Mortgage brokers have commitments with wholesale lenders. Locks are a HUGE deal. Fallout is when loans are locked and then not delivered.
I know of a broker who took risks and locked loans for people he didn’t know.
His fallout was too large and lenders stopped doing business with him. *this was not due to just one loan* but he suffered greatly.
I don’t care whether you ever get a quote from me or not, if you want an explanation of how the system/process really works, feel free to contact me.
Most people have no idea how time consuming & complicated the approval/underwriting process is, and intentionally entering into 2 different agreements knowing that you are going to default on one of them with your attitude just speaks to character.
Don’t worry, you aren’t the only one. It’s pervasive throughout society that people don’t want to be responsible and look for ways to ‘beat the system’ and it’s usually over money. Another post has the same attitude as you.
No bank is going to go out of business if you lock a loan and don’t follow through. Deals fall apart all the time. Locking with a broker is a bigger deal to me, not only because of being in the industry, but the way that I was brought up.
Best of luck with your transaction, I hope that it works out for you.
