Opps, the loan officer didn't lock the rate and the rates increased, does my buyer still qualify?
Well maybe, but maybe not!
In todays world of restricted quidelines a buyer who has an approval at 6.5% may lose that approval if the rate increases to 6.75%. We may not like it, but
That's the fact Jack!
Sorry, I couldn't help myself I just had to say it.
Does that mean that marginal buyers, and those that might be, should lock their rates?
It might mean that if you'd like to be able to close the transaction. It's that old cliche, better safe than sorry.
Well can't they just pay an additional point and keep the current rate?
Yes, if they have it, and they agree to do so. Some may choose to walk even if they have additional funds available. Just because they have it doesn't mean they want to spend it on closing costs. That means they can't buy the new bedroom set.
A question to my Realtor friends. Do you know or do you ask the loan officer if your buyers rate is locked?
It's a great question to ask.
The answer to the question does my buyer still qualify is;
Not a great answer is it?