Most likely the type of loan will be based on the home you move forward on buying and some of the details may change if you do not have 20% to put down. In that case you will need Mortgage Insurance or a second loan to cover the difference between your percentage down and and the 80% loan amount. There are many different types of loans out there, and it is surprising that the loan officer did not discuss what type of loan is best for you and your purchasing goal, such as a 3% down Mass housing loan or a 3.5% down FHA loan. Of course if you are planning to put 20% down then the loan officer is most likely going to qualify you for a conventional fixed loan unless you state you are looking to do something else, which becomes more important when there is an actual property to move forward with.
It is best to have a detailed discussion with your loan officer of choice before commiting to that person and company. You should feel comfortable asking any questions to ensure you understand the process before paying the Application/Appraisal fee. A good loan officer is happy to spend the time needed with each and every borrower explaining different programs and when the rate can be locked, along with anyhting else that is a concern for you as the borrower.
I specialize in helping first-time home buyers navigate through the loan process and welcome the opportunity to have a discussion with anyone hoping to make a home purchase in the future:
Poli Mortgage Group
Apply Online/Request a Rate Quote: http://www.polimortgage.com/kristineguindon
I, too, suggest having an open discussion with your lender. Itâ€™s imperative that you iron out these details once you have an accepted offer.
If you do not currently have counsel to assist you in the Purchase and Sale negotiation, feel free to contact me at the number below. I can walk you through the post-offer process so you know exactly what to expect moving forward.
Elizabeth Perez Barletta, Esq.
Sassoon & Cymrot, LLP
84 State Street, 8th floor
Boston, MA 02109
p: (617) 720-0099 x:110
f: (617) 720-0366
If your current lender didn't explain this to you, I'd find another.
I know this guy can be helpful: firstname.lastname@example.org
Bob Tranchell Total Mortgage Services LLC (508) 367-5731 cell
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If are paying for an appraisal and you want the rate quoted to be a guaranteed rate, you cask the bank to provide you with a Rate Lock commitment, that will show you what rate you are getting and the cost to get that rate, also, you should consider the timeframe for which the lock is guaranteed forâ€¦ you donâ€™t want to get a 30 days rate lock if the closing is not happening in 45 daysâ€¦ Also, you should consider the what if scenarios if the closing does not take place before the lock expiration, how much does it cost to extend and who will pay for thatâ€¦ Best of Luck!!
Congratulations on your preapproval. My concern from your question is that you have questions that your lender has not answered for you. I would suggest that you call your lender and make sure they take the time with you to answer any questions that you may have. If you are not receiving five star service, I would recommend that you get a second opinion from a local loan officer.
The most important thing when looking for the right loan officer, is finding someone who is willing to take time with you and answer all your questions.
Good Luck with the home buying process!
If the LO will not take the time to review everything with you then move on, find someone that will.
Millions of dollars are wasted every month due to appraisals, home inspections, forfeited good faith deposits, time, etc. Good luck,
NMLS # 6395
Financing Kentucky One Home at a Time
I answer questions about financing real estate based on my decades of experience dealing with mortgage underwriters. This answer is my personal opinion, has not been reviewed or approved by the company I work for. I do not offer legal or tax advice, if you need answers from an attorney or CPA find one knowledgeable in your local market.
That being said, I have a unique program that allows you to LOCK and then SHOP. Once you are pre-approved, we can lock in a rate and you have 30 days to find a property. In a rate environment where rates are climbing, this program is very popular and protects against rate increases. if you need more info, please let me know... I' would be glad to help.
Scott McCauley, (NMLS# 174108)
Regency Mortgage Corp., (NMLS# 1938)
40 Congress St, 3Rd Floor
Portsmouth, NH 03801
Consider speaking with your Loan Officer and ask him or her to explain all the details of your pre-approval to you.
If my response was helpful, consider clicking BEST ANSWER!
Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
You still should call you LOan Officer and ask what rate and program was used to qualify. You should also be provided a fee cost worksheet to know about what amount will be needed for closing costs.
You may lock in once an offer is accepted so this can change depending how long you search takes.
First of all, congratulations on taking the first step towards buying a home. With your pre-approval letter in hand, you'll be ready to go when the time comes to submit your offer.
Once your offer is accepted, you'll get the chance to lock in a rate that's agreeable to you. Best thing to do now is to discuss the next stages of your financing with your lender. I'm certain she or he would be happy to answer all your questions.
Michael A. Pallares