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 minimum allowable ratio of down payment to sale price on any loan program. If the minimum is 10%, for example, it means that you must make a down payment of at least $10,000 on a ...
Advice on where to go to get a mortgage. A borrower can always select a loan provider by throwing a dart at the Yellow Pages. A referral is of value if it raises the probability of a ...
A Web site of an individual lender offering loans to consumers. Most Internet shoppers want a list of lenders in whom they can have confidence, who will provide them with the information ...
The upfront and/or periodic charges that the borrower pays for mortgage insurance. There are different mortgage insurance plans with differing combinations of monthly, annual, and upfront ...
Requirements stipulated by the lender that the ratio of housing expense to borrower income and the ratio of housing expense plus other debt service to borrower income cannot exceed ...
A non-citizen with a green card employed in the U.S. Non-permanent resident aliens are subject to somewhat more restrictive qualification requirements than U.S. citizens. Permanent ...
A mortgage on which the payment rises by a constant percent for a specified number of periods, after which it becomes fully-amortizing. ...
Interest from the day of closing to the first day of the following month. To simplify the task of loan administration, the accounting for all home loans begins as if the loan was closed ...
A mortgage loan transaction in which the lender assumes responsibility for an existing mortgage. A wrap-around can be attractive to home sellers because they may be able to sell their ...
Have a question or comment?
We're here to help.