[quote=lookingtobuy] I was thinking about using two different lenders to lock the rate on one and not on the other, in case of the rate decreasing by close.Any thoughts on doing this? Is it worth the extra $400 or so for an additional appraisal.[/quote]
It’s more than just the cost of 2 appraisals & is
highly unfair & unethical on your part. A lock is a serious decision. It’s a verbal commitment that you intend to proceed and your pricing is locked in.
How would you like it if several weeks after you lock, the lender says, “Sorry, we changed our mind. Rates have gone up and we don’t want to honor our commitment”
It’s like telling a stock broker that you want to buy a stock AND place an order at $20 a share and then renege to pay for it because it goes down below $20.
There is a lot of work that goes into preparing a loan file and getting it submitted and dealing with disclosures and underwriting. All the parties involved aren’t going to get a penny unless your loan funds with them. Is that fair to them ?
The escrow company has to provide paperwork & info to the lender. I don’t think that an escrow company
will provide this info to 2 different lenders at the same time.
There are lenders that I work with that offer a ‘float down’ policy. If rates move down at least a certain amount at a point in the approval process, they will give you an adjustment from the locked rate. It can actually cost them money to do this on the back end, as lock commitments are serious to the parties involved.
I completely understand what you want to do and why, but it really isn’t fair to the one that you lock with. Lock fallout can cause a huge problem in some cases to them that you would never know about.