“I’m looking for a San Diego home and shopping around for a mortgage. Once my offer is accepted, is there any rule that prevents me from switching banks if I find a better deal with another bank?”
Probably not, but it depends on your contract.
However, some warnings:
– You don’t always get the rate you’re promised
– In my experience, the 2nd lender often promises to close by the agreed closing date, even when they know they can’t
– Have your agent tell the seller’s agent what you’re doing so they’re not surprised when a 2nd appraiser calls (this just happened to me and a seller client).
– Understand this will make the seller nervous and make you appear a bit flaky
– Don’t cancel with the 1st lender until you close, in case the 2nd lender doesn’t come through
– You should be prepared to close with the 1st lender if the 2nd can’t close on time or denies you
– If you probably can’t close on time, try to negotiate an extension early. Be prepared to give something up, such as an early deposit release.
Hope that helps.