1. What would you recommend a borrower should do when they have to jump ship with their lender after being under contract and find another one?
2. What are red flags to look out for before you hire someone that could result in bumps down the road?
Experienced buyer brokers always have a list of back-up lenders "on call" for their clients.
Interestingly, these back-up lenders often lend at the same or better rates. It happens to me a few times a year where I get asked to help in this capacity.
For buyers on their own, always have a back-up plan.
Red flags are banks who do mortgages only as a courtesy (Chase) as opposed to a revenue stream (BofA and Wells Fargo).