Forgotten Your Password?

Need to Register?

Question Icon

Can a lender keep changing my refinance amount and cash out just days before closing?

We are refinancing our home with some cash out.....every day I receive a new closing disclosure with a lower loan amount and lower cash out. Our interest rate is locked in but is lower than the present interest rates being shown. Are they trying to get us to cancel so they can give out loans at higher rates? This has been going on for 3 days now. by sandilee09259 from Simi Valley, California. Oct 5th 2018 Reply


Wes Hankins (Wes Hankins)
#115 ranked lender in California - 12 contributions

Your CD should not have a higher rate than where you are locked. I doubt they are trying to get you to cancel, but it is possible that they didn't lock your rate, and when rates jumped earlier in the week they locked it with worse pricing

Oct 5th 2018
1
0
Wes Hankins (Wes Hankins)
#115 ranked lender in California - 12 contributions

Oh wait sorry, you said lower loan amount and lower cash out, I though it said rate... as your LO, if they are changing your loan amount it might be due to LTV, or possibly DTI

Oct 5th 2018
1
0
Wes Hankins (Wes Hankins)
#115 ranked lender in California - 12 contributions

ask* Your loan officer .. sorry for all the responses. I don't usually use this platform. I just happened to sit down when it popped up.

Oct 5th 2018
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,471 contributions

No.. that's not the case.. most lenders have hundred's of millions available, and they don't make anything if they don't write a loan.. If you compare the CD's that you have received, you should be able to see exactly where the discrepancy has been.. there's many reasons why this could happen, but the CD has all your answers.. if you cannot decipher the CD's, call your loan officer and ask him/her to explain.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Oct 5th 2018
1
0
Ralph Richard Guertin (ralph@absolutelowrates.com)
#1 ranked lender in Florida - 726 contributions

If your rate is locked that is a good thing. Call your LO and go over CD changes. Good Luck

Oct 8th 2018
0
0
Dave Skow (daveskow)
#1 ranked lender in Washington - 173 contributions

ask the lender why they are doing this ....they aren't doing it on purpose to cancel the loan ...my guess is that the cash out cant exceed a certain amount and that they are adjusting the loan amount so that this cash back amount doesn't exceed this figure

Oct 9th 2018
0
0
David R Youngs - Assistant Vice President (DavidRYoungs)
#65 ranked lender in Minnesota - 60 contributions

Because a lender is required to provide the CD (Closing Disclosure) document to you at least 3 days before closing, to avoid any delays many lenders will issue this well in advance, even if it isn't quite right yet. They just use basic estimates off the information they have thus far, perhaps missing information from the Title Company or other parties in the transaction. Sending the document to you gets the clock started so you can close on time. Then over the next few days the lender's closing department, your LO and the Title Company will work on "balancing" all of the final figures. Sometimes there's no changes needed, but other times it could take a quite a few adjustments to get it to balance correctly. Typically this all happens behind the scenes and a new CD is not required to be issued.However the INTEREST RATE should NOT be changing in this scenario and if it has, that could mean something else. If your rate has increased by more than 1/8th percent, then they legally have to provide you with a new CD that shows the higher amount. If you truly were LOCKED in at a lower rate, then I would immediately question this with your loan officer, because that shouldn't change from the last LE (Loan Estimate) you received prior to this.Most importantly - no matter how much you may want the new loan, if you are being shown completely different terms than you originally agreed upon, I would NOT sign until you had this figured out.

Oct 12th 2018
0
0
Subscribe to our news feed.