Buyer changed lenders after appraisal

I've been lending for 22-years. While it happens, I wouldn't say it is common for people to change lenders mid-stream for "a better deal". Usually when people change in mid-stream is because the initial lender is denying the loan, or is having some other issue. It may be nothing, it may be something. A more detailed conversation with the buying agent is warranted.

Yes, changing lenders is fairly common, sometimes for the better, sometimes for the worse. The buyer will have to work very closely with that lender in order to make everything happen fast enough to close. I would definitely get as much information as you can through the proper channels, i.e. have your agent call the loan officer at the new lender to get the full story on where the loan is now and what the expected timeline is for outstanding items. Best of luck with a smooth closing!

Could be just as they said. There are indeed some borrowers who will shoot themselves in the foot just to get a .125% drop in interest rate. If they locked with their "old" lender, then it's not enough for them to re-negotiate the rate with them. Rates moved down ever so slightly in the previous few days. Some people will actually jump ship for a small rate improvement, not understanding the peril they've put themselves in with meeting the contract closing date and also costs them confidence points on the seller's side of the transaction. Watch this carefully.

I doubt a buyer would change lenders for a better deal so close to closing. Especially since rates have been rising. Unless the buyer is going for a special program like a first time home buyers program where they may be receiving down payment assistance that the first lender could not provide. I would be concerned that a loan will get closed in 2 - 3 weeks form a new lender.

my experience says that there's a problem.. I've never had a borrower bail out within a week of closing for a "better deal".. something happened that affected their approval.. as the seller, your buyer provided a pre qualification letter along with their offer, and that pre qual probably has the original lender contact info.. I would call them and ask why the borrower switched lenders.. I'll bet you get an honest answer.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com