You’ve found the perfect home and are ready to make an offer. Before you do so, there are a few quick to-do’s that you should complete to ensure that you are making the right offer. Don’t forget these critical last minute tasks.
Check interest rates
Your monthly payment is directly tied to interest rates. If your pre-approval was from several months ago, mortgage rates have likely changed since then. A 0.25% change in rates could make a big difference in your figures, especially if you’re purchasing near the max of your pre-approval or affordability range.
Make a quick call to your loan officer to verify the current rates and what your mortgage payment would be on the particular property. You may have heard that interest rates are fluctuating quite a bit and in an upward trend. Checking the current rates avoids any surprises later on.
Verify underwriting timeframes
You may want to close quickly (i.e. within 30 days) but that doesn’t mean that your lender can necessarily pull that off. To avoid closing delays and the need for extensions, check with your lender on two things. First, how much time is needed to obtain a mortgage commitment? This is issued after the lender has reviewed both your finances and a third party appraisal. One or both may be experiencing certain delays. Secondly, verify that your desired closing date is reasonable from the lender’s perspective. These are two very important dates.
Making valid offers
Once your offer is accepted by a seller, it can be complicated to make changes to critical dates and terms. By checking with your lender in advance on interest rates and underwriting timeframes, you can make better decisions about the terms included in your offer.
Suzanne Plewes is a broker associate at RE/MAX Alliance. Write to 750 W. Eisenhower Blvd., Loveland, CO 80537, call 970.290.0373 or e-mail [email protected].