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
The federal law that specifies the information that must be provided to borrowers on different types of loans. Also, the form used to disclose this information. Truth in Lending (TIL) is ...
A mortgage loan for 125% of property value. Since such loans are only partly secured, they have many of the characteristics of unsecured loans, including relatively high interest rates. ...
A second mortgage on a property that is not paid off when the first mortgage is refinanced. The second mortgage lender must allow subordination of the second to the new first mortgage. ...
Same as term Qualification: The process of determining whether a prospective borrower has the ability to repay a loan. ...
The definition of an assumable mortgage is what happens when a buyer assumes or takes over a mortgage that the seller contracted. This is a type of financial arrangement that passes an ...
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. ...
A particular combination of loan, borrower, property, and transaction characteristics that lenders use in setting prices and underwriting requirements. ...
The assumption that the index value to which the interest rate on an ARM is tied follows the same pattern as in some prior historical period. In meeting their disclosure obligations in ...
A measure of interest cost on a reverse mortgage. ...
Have a question or comment?
We're here to help.