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Unknown Name, Home Buyer in

USDA loans- how long does pre-approval last? does the rate get locked in once an offer is made? how does the rate get effected if time is extended?

Asked by Unknown Name, Mon Oct 22, 2012

Any suggestions for locking rate if the purchase is a short sale and things might fall through or take a very long time (ie simultaneously apply for FHA loan and conventional loan). I need to move by June 2013, so Im serious buyer.

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Dont lock until you have a written approval from the third party bank.

Yes you can apply, get your home inspection done right away, make sure the home is all what you think it is. This is no negotiations later.

Be ready for a rate lock as soon as the bank approves the short sale.

If you are looking for a low rate, you will not be able to take advantage of any rates now until the seller gets the bank to approve the short sale.

Make sure you use a an experienced buyer realtor with short sales, because you wont know the sellers realtor's experience. You need someone on your side.

interview the realtor by asing questions. these are not the only questions but it is a good start...http://sellitfast123.com/what-a-buyer-should-know/


Good luck!
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1 vote Thank Flag Link Tue Oct 23, 2012
Larry answered your question perfectly! You really cannot lock into a rate on any of the mortgage products, USDA, FHA, or conventional until you know the settlement date. Lenders have to lock a loan for a certain time period. If my company was processing your loan and we locked for 60 days, but you did not have an answer from the seller's back until 61 days, you rate would have expired.

So you can lock, but the rate will expire without a firm settlement date in place and a lock that covers that date.

Best of luck to you!

Joseph S. Cordova NMLS# 146855
Evesham Mortgage, LLC
22 South Maple Avenue
Marlton, NJ 08053
office: (856) 985-9944 ext. 103
direct fax: (206) 333-0946
cell: (856) 304-2381

"The finest compliment I could ever receive is the referral from my friends and customers."
Apply online at: http://www.joecordova.com
0 votes Thank Flag Link Tue Oct 23, 2012
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