Can buyer terminate Contract on not getting the right rate from lender?

Asked by Alert_Buyer, Hockessin, DE Sat Sep 12, 2009

In DE, contract does not say how to reminate on interest rate?. What is that non satisfactory rate that buyer can terminate the contract? Is that rate the market rate for CONV or FHA loan? Can interest rate can be set to some value in contract?

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Heather Mori…, Agent, Allentown, PA
Sun Sep 13, 2009
Hello Buyerseller09!

Yes, when you make your offer on a home there is a field in the PA agreement of sale that you need to fill it that says the low and high interest rate you will agree to. So, If for some reason before the seller signs your offer and excepts it...and the interest rates go up then you do not have to purchase the home. Soon as the seller signs your mortgage company should lock your rate so then you do not need to worry about the interest rate moving from the time that your agreement gets accepted from the seller and the time that you go to settlement.

I hope this helps. I have other Home Buying Tips for PA buyers at my website...I do not cover your area but my video's cover all of PA.
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Alert_Buyer, Home Buyer, Hockessin, DE
Sat Sep 12, 2009
Does it mean buyer can set a rate e.g. (5.2 % CONV) on DE form with an arrow drawing? Rate field is not there. Thanks. Please confirm on this.
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Nick & Trudy…, Agent, Devon, PA
Sat Sep 12, 2009
Again this should all be taken care of in the agreement of sale. Usually this is part of a mortgage contingency, if you are using an FHA loan product as well the contract should also say the house must appraise at the price offered in the agreement of sale.
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