Financing in Irvine>Question Details

Lei, Home Buyer in Irvine, CA

Can my interst rate be lowered before I sign my loan doc? Please advise!!!

Asked by Lei, Irvine, CA Sun Dec 14, 2008

I am buying a REO proptery, we opened escrow, and my loan was approved shortly after. The loan doc issued, but since we are still waiting for CC & R, I have not signed the loan doc yet. But during the last two weeks, interest rate had droped a lot, and it might continue to drop within a week or so. Since the loan doc was never signed, can I do a loan modification or some kind of document to lower my interest rate?
Thank you!

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What you're seeking isn't a "loan modification" in the sense that Thom below was talking about - what you're seeking is to change the terms of your mortgage to be. I would be in touch with your lender immediately to try to change the terms to a more favorable rate. You might not get as low as you're seen, but you should be able to get an improvement, without delaying the escrow more than a couple of days, at most. You, or your agent should jump on this immediately.
0 votes Thank Flag Link Sun Dec 14, 2008
Lei ... If you are not now working with a Realtor agent, please hire such an experienced and qualified person now. If you are using a Realtor on the buyer side, please have that person contact the lender or mortgage broker and see if the proposed loan can be modified prior to closing. Best wishes to you.

Harrison K. Long, Realtor and broker, Explore group properties, Coldwell Banker Previews, Irvine, CA.

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0 votes Thank Flag Link Tue Dec 16, 2008
Not sure who your loan is with but Wells Fargo Allows locked loans to be re-negotiated....Like bob said try and re-negotiate with your lender with minimal delay.
Web Reference: http://www.mattirvin.com
0 votes Thank Flag Link Sun Dec 14, 2008
It all depends if your loan has been locked. Your mortgage broker better resource to answer your questions, How keep in mind the closing date if you need additional time have your buyers agent file an amendment to contract extend.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Dec 14, 2008
Thank you, Cynthia! Yes, although the bank never gave in on the terms, with market like this, most likely I would be buying another REO property, then there would some conditions or problems then as well.

I was told that we would be able to close early last week, but because of CC&R, we cannot... my agent had told me that she ordered them online because she knew it would hold up the process if we were counting on the bank to take care of it, she even offered to pay for it. She said we would receive the electronic file the next day, but now ten days has passed, we still do not have it. I do not know what is the real reason.

However, I am not too concerned about it since I had completed everything as a buyer, the per diem charge should not apply in this case.

So, from the answer that I am getting from you all, by the way, thank you for your advise. If I am understanding these correctly, at this point, I might be able to lower the rate, but it would be up to the lender since the rate was locked. Is that correct?
0 votes Thank Flag Link Sun Dec 14, 2008
Hi Lei, Do you know if your lender has already locked you in? If not, you can lock at any time now that rates are lower. Either way, speak to your lender and see what you're options are. I take it your deal is moving forward! Glad to hear it.
0 votes Thank Flag Link Sun Dec 14, 2008
Since there is no actual loan as yet you could not do a "Loan Modification" that is typically for people who are struggling to make their current mortgage payments.

I suspect your rate is already "locked" but you should contact your lender or Loan Broker and ask what their policy is.

Best of luck!

Thom Colby
Broker & Realtor
Irvine, CA
Web Reference: http://www.thomcolby.com
0 votes Thank Flag Link Sun Dec 14, 2008
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