Home Buying in 19120>Question Details

Berlykim87, Home Buyer in 19120

Worried about being denied for mortgage loan because of interest rates.

Asked by Berlykim87, 19120 Thu Apr 26, 2012

Can hgher interest rates going up get me denied for a loan? My prequalifications was at 3.5% and now the rates are 4.125 I am worried I will be denied and also how often do they change?

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Yes, rising interest rates can change your pre-approval because it changes your debt ratio. However, if you were at one time pre-approved for 3.5%, there is nothing that has happened that would have raised your rate to 4.125%. For the brief time 3.5% was viable you would have had to pay points and have a stellar credit profile, your current rate would not be that far off currently under the same circumstances. It sounds more like you were baited into an application with someone with the 3.5% tease and now they have switched things up on you.
0 votes Thank Flag Link Thu Apr 26, 2012
Thank you all and I will let you know how it goes
0 votes Thank Flag Link Thu Apr 26, 2012
Dear Berlykim,

It's okay that you feel "all over the place". That is perfectly normal as a first-time home buyer. You are very wise to ask questions. I'm glad you took my advice and called your lender.

If we can be of any further assistance, let us know.

And please come back and let us know when you have moved into your new home.

Best of luck.
0 votes Thank Flag Link Thu Apr 26, 2012
goog for you...... See its not that easy going through a home transaction.....

All the Best John + Sheri

215-757-2889
0 votes Thank Flag Link Thu Apr 26, 2012
Sounds like you're really anxious. Talk to your Realtor. He/she can put your fears to rest. This is an stressful time and that's part of why you have a buyer's agent. Don't be afraid to ask them anything. They are there to help you through this.
0 votes Thank Flag Link Thu Apr 26, 2012
Just talked to my lender he said I will get the 3% interest rate for first time home buyers so I have nothing to worry about. I'm all over the place.
0 votes Thank Flag Link Thu Apr 26, 2012
Good Morning Berlykim,

Have you thought about a 7- 1 Arm Fixed Rate?

The Banks are FINALLY easing up.

Feel free to give us a call so we can speak confidentially.

All the Best John + Sheri RE/MAX 215-757-2889
0 votes Thank Flag Link Thu Apr 26, 2012
I got prequalified for 100,000 and the house is 99,000 but looking at 4% interest rates I can only afford a 79,000 home. I have already gave a 1,000 deposit and paid for inspection.
0 votes Thank Flag Link Thu Apr 26, 2012
Give me a call and I'd be happy to rerun the numbers for you.

Alan
267 992 7276
0 votes Thank Flag Link Thu Apr 26, 2012
Hello BerlyKim,

When I qualify someone I do it at todays rates. Interest rates really have not moved up by 0.625% in the past few months so i am not sure why the pre-approval came in at such a low rate.

Yes if you are right up to the limit the interest rate can affect you qualification but it moves your numbers surprisingly less than you would think.

If I run inot that situation I try to buy the rate down a little or have a client pay off a credit card prior to application to make things go., In most situations we can make it work.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960
0 votes Thank Flag Link Thu Apr 26, 2012
There's no predicting when interest rates will change, it depends on so many things. Call your lender. If the interest rate goes up significantly to where your monthly payments take you above the accepted debt ratio, it can change your pre-approval. You can lock in your rate if you have already put in an offer on a home that was accepted. It's the best safeguard against rising rates.
0 votes Thank Flag Link Thu Apr 26, 2012
I would not worry jut get the prequal again and you will know.
Rates change every day and in today's market the daily change is not very significant but a weekly or a monthly wait may cost you a .25-.75% as you can see yourself.

Are you working with a Real Estate agent to find a home? If you are not please call or email me and i will gladly work with you. You can also use my site for searching the latest listings: http://www.eRealtyFind.com

Thanks,

Alexander Shulzhenko
Realty Mark Cityscape
267 738 0886
realexs@gmail.com
http://www.eRealtyFind.com
0 votes Thank Flag Link Thu Apr 26, 2012
Interest rates will effect how much money you are qualified to borrow. Have your lender rerun the numbers at the higher rate to be sure.
Good luck,
0 votes Thank Flag Link Thu Apr 26, 2012
Rates go up and down periodically. The best thing to do is contact your lender. Some lenders will lock your rate for a period of 30, 60 or 90 days. If you were very close on debt to income ratio, it may have an affect on your loan.
0 votes Thank Flag Link Thu Apr 26, 2012
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