Does my Buyer still Qualify?

By
Mortgage and Lending with Bank of England Mortgage 385907

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;

Maybe!

Not a great answer is it?

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Rainmaker
770,196
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

And it isnt just the rate that is locked, in many cases it the Rate lock also locks in guidelines that are ever changing in this environment.

Jun 12, 2008 03:25 AM #1
Rainmaker
218,087
Joan Mirantz
Homequest Real Estate - Concord, NH
Realtor, GRI, CBR, SRES - Concord New Hampshire

Jay...why would the Loan officer not lock it? It can be adjusted if it goes down right? Wouldn't that be a win/win?

Jun 12, 2008 01:50 PM #2
Rainmaker
190,983
Susan Milner
Florida Future Realty, Inc. - Cape Coral, FL
Cape Coral Real Estate Broker, FloridaFutureAgents

Jay, I think I'll just keep working with the cash buyers - ha. I know you love them :)

By the way folks, Jay has got to be one of the best loan officers around !!!

Jun 12, 2008 02:14 PM #3
Rainmaker
288,859
Jay Beckingham
Bank of England Mortgage - Delray Beach, FL
Seniors ROCK!

Robert,

maybe things are done differently at countrywide or maybe you do things differently, but when the application is completed a program is commited to and the guidelines should not change.

Joan,

no, when the rate is locked it will not be adjusted down if the rates decrease.

Susan,

cash buyers? don't they have accountants?

also, thank you for the kind comment.

jay

Jun 13, 2008 01:54 PM #4
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Rainmaker
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Jay Beckingham

Seniors ROCK!
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