I was approved for a $280k loan at 100% (80/20) 80@5.75% I/O and 20@9.5% 30 yr fixed with good credit. It's a new home and I just finished adding options to it and now the price is just below $300k. How much can I expect my rates to change with the $20k increase in price and should I expect to still get approved?
2006-10-07 01:11:23 · 5 answers · asked by Kent 1 in Business & Finance ➔ Renting & Real Estate
I have not closed on the house yet, it will be finished in December 2006.
2006-10-07 01:32:06 · update #1
You need to contact your Lender and see if he/she has "locked? in your rate. Normally a Lender will lock your rate of 15, 30, 45, 60 days or Higher - If your rate is locked, you should still get the "best" pricing and there should not be a change in your rate. But, talk to your lender to give you "peace of mind" ok. Your payment will go up- with the added increase in the home value, but your rate will be the same, again talk to your Lender -
2006-10-07 05:24:48 · answer #1 · answered by W. E 5 · 0⤊ 0⤋
Your loan will have to go through the underwriting process again. Since the numbers have changed the rates and even the approval are subject to change.
If you were at the upper limit of the lender's debt to income ratio, it's entirely possible that you will not be approved at the higher cost. If you were well below the limit, approval may not be impacted.
You'll have to ask the lender what the impact will be in your situation. Nobody here can possibly say what their decision could be -- and anyone who says they can is full of hot air.
2006-10-07 03:18:04 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
The rate shouldn't change at all if you are still doing 100% financing. You can still expect to be approved unless you barely qualified the first time around. You will probably also need more for closing costs and the typical reserve requirement. Ask your Loan Officer for the most accurate answer. You can also email me for further questions.
help@choicefinance.net
2006-10-07 12:12:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
if you get approved for lover loan amount, and now you need more money- you start like from beginning. your lender need to underwrite your application again and because of this there is no guarantee, that you will get the same interest rate.
2006-10-07 17:34:09 · answer #4 · answered by bianca 4 · 0⤊ 0⤋
Your rates aren't going to change unless you refinance. If you refinance, there is no guarantee that you will get a lower rate.
2006-10-07 01:21:19 · answer #5 · answered by Zelda 6 · 0⤊ 1⤋