Let’s say, you want to put more down when buying house or your in the process of refinancing and your home appraisal comes in lower. In any case, an event transpires during the loan transaction that causes you to want to switch loan types, can be anything from moving from an FHA Loan, to a Conventional Loan or moving from a 30 year fixed rate mortgage to a 15 year fixed rate mortgage. In such instances, changing anything with regards to the loan program or loan type will cause the lender to resend loan disclosures.
Switching loan types can also have an effect on the costs especially when the appraisal comes in to play. For example most mortgage lenders will have you pay for an appraisal upfront with plastic. On average an appraisal fee is $450. Let’s say for example, your applying for a conventional mortgage loan on a refinance and the appraisal comes in slightly lower than where you need it to be. As such, you elect to change loan types to an FHA Loan. To change the appraisal from a Conventional appraisal to an FHA appraisal, will typically mean one of two things either a product change fee the appraiser will collect if the appraiser is licensed to do FHA or it might mean having to pay for a whole new appraisal, yep another $450 all over again. This is unfortunately is the nature of the beast when borrowing big money.
For this reason it’s incredibly important to work with local Santa Rosa/ Sonoma County mortgage loan officer that has a thorough understanding of mortgage underwriting and can best advise you on the most appropriate loan type on the front and so as to avoid a product change fee or worse, paying for a new appraisal. If the changing of loan type during the loan process has to do with home valuation, no mortgage loan officer no matter how good they are can avoid you having to pay a fee to switch the appraisal to the appropriate program.
Having a hard time with your big bank? Is your broker too busy to help? Give us a shot, and let us earn your business by giving you a complementary no strings attached mortgage rate quote for your refinance loan or home purchase.