Bay Area

[firstimebuyer11]

I am working with Bank Of America for mortgage loan. They initially pre-approved me and after getting the offer accepted I submitted all the documents. They told me that there wont be any problem with the loan after reviewing the documents, but suddenly after 10 days they said that my loan might not be approved. So I was suggested to seek loan from another bank. Bank of america said they will continue processing my loan because they have already started the process. Meanwhile I reached out to Chase bank for my mortgage. I submitted all the documents to chase and they have done the appraisal too. Now I have both the banks telling me that I will be qualified for the loan and they are going ahead to submit my file for underwriting. I did not tell Chase that I am still getting my loan processed by Bank of america. But BOA is giving me a better rate. How do I tell Chase that I wont be going ahead with them? Is that ok to say?

[Siccished]

Business is business.

Both banks were back up lenders for your situation and its in your best interest to choose the bank that makes more sense.

The bank rate may not be the most desirable thing though.. Are there any risks with going with BofA vs Chase? For example,  if the close date is very tight and BofA has a slow underwriting department then that is a big risk with getting the house.

When it comes time to going with either bank handle it this way.

I had two loan applications as a backup for financing and BofA has better rates, so i need to choose whats best for me. Apologize and say you appreicate the help and will forward reccomendations to them ..etc

[oldguy]

Tell Chase why you are going with BOA and I can almost guarantee they'll price match or make a better offer.

At the end of the day you are going to be working with the bank of choice for a long time, so get the one of your preference to give you a better rate and take advantage of the market.

They want your business, so they are going to have to be competitive. You have nothing to lose.

[netbeaver]

Got burned by BOA's underwriter toward the end of my process so I had to dump BOA. Be careful. 

[Babyc]

Same story with me, we lost a great deal because BOA messed up our loan the day before our contingency run out. The rate, rebate ect from BOA was most attractive - so what? I wish I would pick a bit less attractive but I would have my own home right now. We were trying to buy in Sunnyvale last summer before the little local bubble started here. We have excellent scores, good income, stable job - I thought banks should chase us and right love letters but they are not friends with simple logic. Anyway, they returned me the fees for appraisal and credit check (took a while), I am in the process of removing my assets from BOA. First time buyer, very paiful expirience... I was packing my staff to move, everything looked just fine...

[lexa]

BofA announced they are not selling mortgages to GSEs any longer. This may explain more stringent reqs.