Dual-Apper
Definition of "Dual-Apper"
A borrower who submits applications through two loan providers, usually mortgage brokers, without their knowledge. Home purchasers sometimes submit more than one loan application as a way of protecting themselves against the hazards inherent in committing to one loan provider before the price is locked. Double-apping strengthens their bargaining position in negotiating the lock price. Mortgage brokers despise dual-appers because they force the broker to do a lot of work and then bid for the loan or lose it. Being midway through the process with a resentful broker is not a happy prospect. If you run into a major roadblock, a resentful broker may not be willing to go the extra mile to remove it.Locking does not provide complete protection against skullduggery, furthermore, because the lock price does not finalize the settlement costs other than points. At that point, the settlement costs are merely 'estimates.' A resentful but resourceful broker will find ways to augment your fees as you move to closing. There is an alternative to double-apping that protects you better, is fair to the broker and avoids wasted effort. Demand to know the price before the work begins. While the price of the mortgage cannot be set in advance, the price of the broker's services can.There is now a group of brokers, called Upfront Mortgage Brokers (UMBs), who quote a fee for their services upfront. Separating the price of the broker's services from the price of the mortgage eliminates gamesmanship by the broker and the need for double-apping.
Popular Mortgage Terms
A mortgage on which half the monthly payment is paid twice a month. It should be called a 'semi-monthly mortgage' but market practice often trumps logic. In contrast to a biweekly, a ...
An agreement by the lender not to exercise the legal right to foreclose in exchange for an agreement by the borrower to a payment plan that will cure the borrowers delinquency. ...
Same as term housing expense. The sum of the monthly mortgage payment, hazard insurance, property taxes, and homeowner association fees. Housing expense is sometimes referred to as PITI, ...
A lender commitment to make a mortgage loan to a specified borrower, prior to the identification of the property that will be mortgaged. On a pre-approval, unlike a pre-qualification, the ...
Proliferation in the number of loan, borrower, property, and transaction characteristics used by lenders to set mortgage prices and underwriting requirements. Nichification is unique to ...
The dollar amount of interest paid each month. The interest payment is the same as interest due so long as the scheduled mortgage payment is equal to or greater than the interest due. ...
A sale price below market value, where the difference is a gift from the sellers to the buyers. Such gifts are usually between family members. Lenders will usually allow the gift to count ...
Loan applications that are withdrawn by borrowers, because they have found a better deal or for other reasons. ...
The process of raising cash periodically through successive cash-out refinancings. This is a scam initiated by mortgage brokers that victimizes wholesale lenders, with the connivance of ...
Have a question or comment?
We're here to help.