Lock in mortgage rate before signing purchase contract?
As far as I know this is not possible (need contract first), and yet the potential buyers of our coop, who are planning on signing the purchase contract later next week, mentioned that they will be locking in a mortgage rate earlier in the week. I’m wondering if the buyers are not being properly informed…
As far as I know this is not possible (need contract first), and yet the potential buyers of our coop, who are planning on signing the purchase contract later next week, mentioned that they will be locking in a mortgage rate earlier in the week. I’m wondering if the buyers are not being properly informed by their mortgage broker. Any thoughts?
You are misinformed because you don’t need a purchase contract to lock. I can get you a commitment without a purchase contract. It depends on when the cosing is because a rate lock that is expired won’t help anyone unless rates go down. i need a social and property address, loan amount, product type, then I can lock it but I will need some kind of commitment from the borrower(check for appraisal) because I get special pricing from various bank because of my pull through(% of locked loans that close). Very few mortgage companies have this. Email me at jayrhee@gmail.com and I will take care of the borrower.
you can lock your rate in for a specific period of time that your lender will allow. You just need to be certain of closing within that time period. Obviously anyone who locked in a rate a few weeks ago is in a great position as rates have risen.
As an aside, the reason mortgage rates have risen while the Treasury rates have fallen with all sorts of Fed stimulus is because banks see the greater spread as a way to make some money in this period of immense financial uncertainty…the banks are stubbornly refusing to lower rates with declining funding costs because its one of the few businesses where they can increase their income righ now
we locked in before contract as well. we were dialoguing about the minor clauses and knew we would sign so we went ahead and locked in the mortgage. broker never said anything about needing to have a contract. and we have now submitted the whole application but still haven’t been asked for a copy of the contract.
We locked in a mortgage 3 mos befor purchase
Yes they can lock in a mortgage rate in advance of signing but they will have a deadline to close on the place.