Financing in 75067>Question Details

John, Home Buyer in Dallas, TX

does price reduction unlock interest rate?

Asked by John, Dallas, TX Wed Apr 1, 2009

My interest rate was locked a few days ago and I am happy with it, but now the seller is offering a smallprice reduction - will this change the interest rate when i submit the amendment to the bank?

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I wouldn't think so as long as your closing date has not been extended.

Talk with your lender about it.

Could even be that that rate has gone down, depending on when you locked.
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0 votes Thank Flag Link Thu Apr 2, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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As long as you close by the date your lock expires, and you continue to qualify for the loan, should be no problem. The rate lock has only do with obtaining a certain rate and a change like this in your favor is of no consequence. Verify with your loan officer in case there is something else to this scenario we don't about.
0 votes Thank Flag Link Wed Apr 1, 2009
John,

Generally speaking the price reduction itself would not impact the lock. However, if the loan-to-value (LTV) is changed, even slightly, this could cause an issue with the loan's pricing or eligibility. Discuss this with your loan officer and find the best way to keep your existing terms in place. You should be able to accommodate this change without trouble, but address it now and not later.

Good luck,

Rob Spinosa
rspinosa@mortgagemasterinc.com
0 votes Thank Flag Link Wed Apr 1, 2009
No. Most lenders have a tolerance for this.
Ask your loan officer.
0 votes Thank Flag Link Wed Apr 1, 2009
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