Is the Wells Fargo lender fooling me?

Lyft
2dfgew

Go to company page Lyft

2dfgew
Jul 6, 2021 6 Comments

I am under contract for an SFH. The lender I got the preapproval from seems to be playing tricks. Initially, he said he can beat any competitive offer I can get. I got 2 competitive offers from US bank at 2.25% for a 10/1 ARM. Now he says, I need to lock in a rate at 2.625% and then he will request a rate reduction with his manager. He says he's 100% confident in the rate reduction.

I asked him why doesn't he get the rate reduction approved first and then lock-in the rate. But he's hiding behind "This is the standard procedure at Wells Fargo" trope.

Should I trust this lender? We are already running late on closing.

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TOP 6 Comments
  • Walmart / Strategy
    WalterMrt

    Go to company page Walmart Strategy

    WalterMrt
    Unless I'm mistaken, you don't need to close with Wells Fargo just because you lock in. You're not obligated. Ask him.

    I'd say go with multiple banks, there's no loss.
    Jul 6, 2021 1
  • Uber
    hfHH16

    Go to company page Uber

    hfHH16
    He actually stands to lose more if he locks in the rate and you don’t go with them. So if he can’t fulfill his promise you can just not go with them and he’s screwed.
    Jul 6, 2021 0
  • ServiceNow
    sn2021

    Go to company page ServiceNow

    PRE
    Salesforce
    sn2021
    I would go with US bank rather than risk loosing the house.
    Jul 6, 2021 2
    • Lyft
      2dfgew

      Go to company page Lyft

      2dfgew
      OP
      Is your comment against the specific lender I am working with or Wells Fargo in general?
      Jul 6, 2021
    • ServiceNow
      sn2021

      Go to company page ServiceNow

      PRE
      Salesforce
      sn2021
      My comment was against the specific lender. If you’re getting a better rate other places and are short of time to close the loan I would suggest go for the other lender. You’ll think of refinancing again if the interest rates go down next year once the market corrects.
      Jul 6, 2021