Should I be concerned with a mortgage loan that may switch companies after signing?

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I.e. natioanal city bank to 5/3 bank

6 Comments
  1. Reply
    oplumey
    May 17, 2011 at 2:59 am

    No, that’s completely normal. Banks do that all the time. You’re interest rate won’t change, nothing will change.

  2. Reply
    queenthesbian
    May 17, 2011 at 3:30 am

    Well, every single home I have bought, and every single time I have re-financed, my loan has been sold IMMEDIATELY afterwards. So I wouldn’t concern myself, selling loans immediately after closing seems to be the standard way of doing business.

  3. Reply
    momof2greatboys
    May 17, 2011 at 4:02 am

    No. Lending companies do that all the time.
    They sell their mortgages to other companies.

    Do check however, that your APR is still the same, and your terms haven’t changed. Read the small print.

    Make sure you still have a fixed rate if you have that.

    If you have a variable rate, check that it hasn’t increased or will increase to what percentage.

  4. Reply
    spifiman1
    May 17, 2011 at 4:45 am

    No. This is common. I bought my last home over 3-years ago and the mortgage changed hands twice before the first year was up.

    It should not effect your rate or term it’s simply one bank selling your loan to another bank.

  5. Reply
    LB.
    May 17, 2011 at 4:49 am

    Yes, always watch and see what they do with agreement documents such as a disability document that pays your payment if you are laid up and disabled. Banks such as WELLS FARGO will buy a loan from another bank and conveniently not include that contract when you need it. Irregardless if you signed it with another lender.

  6. Reply
    Nichole O
    May 17, 2011 at 5:31 am

    I am a certified mortgage planner. You may see your servicing company change many times over the course of a loan term, for a variety of reasons.

    The original terms of your loan will NOT change, only the servicing company that you send your checks to.

    However you could have potential challenges with your new servicer, such as they don’t accept online payments or do automatic withdrawal for your payments.

    If you are unhappy with your servicing company, you have two choices, deal with it or refi. And there is no guarantee that you won’t end up there again.

    If you have questions or need help, please feel free to contact me via e-mail.

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