Can I start looking for financing/mortgage for my home during this sort sale ?
John P asked:
I have put an offer for a short sale property, and the listing agent(owner) took the offer and waiting for the Lender to say YES.
I have put an offer for a short sale property, and the listing agent(owner) took the offer and waiting for the Lender to say YES.
I heard that the sellers Lender will take more time to tell his decision whether they accept it or not.
1)During this time can I shop for the mortgages ?
2)How long does it take to get a loan approved and good mortgages rates usually ?
3) Can we lock the rates once we think its a good one?
Micheal
Tags: Agent Owner, Mortgage, Mortgages Rates
April 24th, 2009 at 11:30 pm
Brandon
You should apply to get pre-approved for a mortgage right away. Your contract, if it is subject to financing, typically requires you to apply within a certain time frame. Pre-approval can usually be done almost immediately if you have your documents (tax returns, pay stubs, W-2’s, etc.) available. Typically you can lock your rate once you are approved, if you feel the rate offered is attractive. Be aware that locking in a rate for over 30 days (which you may need to do to allow sufficient time for the owner’s lender to respond) may cost you. Consequently, you may want to consider floating the rate until you get the lender’s approval.
April 27th, 2009 at 5:29 am
Katherine
You can start shopping for a mortgage at any time (you probably should have already started). Once you decide on a bank and start the process figure 45 to 60 days to get a mortgage approval and close (you can get pre-qualified, but this is only a preliminary step - there will be more processing). Once you start the process, you can lock the rate in at any time. Usually rates are good for 30 to 60 days, but each bank/lender has different policies, so make sure you ask about the locking (some banks, for example, will lock in for 30 days and charge a fee to lock in for 60 days; others will give you a full 60day lock in).