Can I start a new application to re-finance my mortgage while another is pending?
I began the process to refinance the mortgage on my home at the beginning of last December to get a better interest rate. It is now March and the process still isn't done. I've expressed my irritation over the process being dragged out several times, especially since I've seen multiple promised deadlines blow right by without even acknowledgement until I'd raised the issue. I've told the lender that they've until March 15th to close on this or I'd go somewhere else. That deadline, though, is one of my own choosing.
Given that March 15th is just a little over a week away, is there anything preventing me from reaching out to another lender to do the re-financing? Legally or practically?
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The most obvious risk is that your cancellation may cost you money. Money spent for items such as the credit check and the appraisal may not be refundable. You have to review all of the paperwork to see what other provisions apply.
You have to plan for paying for those items again, because the new lender will not have access to the earlier products and will want an updated look.
Normally multiple credit check close together are treated as one credit check. This allows you to shop for a good deal. It is likely that a new round of pulls will not be combined with the earlier ones, so you score may drop some.
The long delay meant that any locking in of rates has expired. Now the good news is that lately rates have been dropping. Though who knows what the future holds.
Normally if thee is a big drop in rates there is a surge in applications, though I don't know if that will impact you now.
I would start with the contract you signed to see if there are any penalties mentioned. It also may tell you what you need to do to cancel the deal.
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