Some buyer's choose to lock in their rates ASAP while others take a gamble and wait. Since turn around time for 3rd party approval is taking longer than ever.
If you talk to a short sale specialist..they will tell you..right now they are overworked and really backed up..backed up weeks and some even months.
Heck you call some banks...its sounds like a telemarketing room!
The buyer who takes the gamble is the buyer I am talking about.
Keep in mind with the way guidelines are changing everyday..the rate the buyer was qualified for 60 days ago..may no longer be available today.
This can and often times will kill the hopes and dreams of the buyer buying that particular home and may cause the short sale seller to start once again.
Loan officers should make sure and share this information with the REALTOR and really express to the customer the gamble of waiting to lock in the rate.
The benefits of locking in the rate is a borrower can lock in the rate for 30 to 60 days and in most cases can extend thereafter, an additional fee. BUT TIMING IS EVERYTHING!
Recently a buyer's rate went up over .75 because the rate was not locked in, guidelines changed..and obviously so did the rate! As real estate professionals it would be smart..to ask the buyer of a short sale...did you lock in your rate?
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