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 lenders requirements regarding how information about income and assets must be provided by the applicant and how it will be used by the lender. The following categories have evolved in ...
Compiling and maintaining the file of information about the transaction, including the credit report, appraisal, verification of employment and assets, and so on. Mortgage brokers usually ...
A documentation requirement where the applicant's income is not disclosed. ...
A plan purporting to protect FHA homebuyers against property defects. ...
Total costs charged to the borrower that must be paid at closing, by the borrower, the home seller, or the lender. In dealing directly with a lender, settlement costs can be divided into ...
Interest that is earned but not paid, adding to the amount owed. For example, if the monthly interest due on a loan is $600 and the borrower pays only $500, $100 is added to the amount owed ...
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 ...
Allowing the interest rate and points to vary with changes in market conditions, as opposed to 'locking' them. Floating may be mandatory until the lender's lock requirements have been met. ...
A documentation option where the applicant's income is disclosed and verified but not used in qualifying the borrower. The conventional maximum ratios of expense to income are not ...
Have a question or comment?
We're here to help.