Interest Rate Locked When?

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  • #71152
    dpruitt27
    Participant

    So I’ve been getting the run around being bounced from counselor to counselor for MONTHS. Low and behold, God may have been looking out for me because this new lower interest rate is AMAZING! Can someone tell me at what point in the process is our interest rate locked in? Thank you!

    #71153
    Nelsont
    Member

    When you submit a ratified contract.

    #71156
    TTrumble
    Member

    Hello dpruitt27,

    For the interest rate to be locked in, the Purchase and Sale Contract must be submitted and a copy of the Loan Estimate is created. Then the P&S contract, data points and the contact information for appraisal are sent to the lender who then pre-registers the application, assigns a loan number, and locks the interest rate.

    To put it in the simple terms we normally use, the interest rate is locked in when the bank app is submitted.

    But to bring this down to its most fundamental, what-does-this-mean-to-me terms, those incredible rates you are seeing are all but guaranteed to stick around until at least the end of the year. So now is the time to get busy and get qualified!

    BTW, thanks for having the vision to see that “being bounced from counselor to counselor for MONTHS” actually wound up being a GOOD thing in that it led you to this amazing situation. More people need to simply take their time with the process and go with the flow. In fact I have my own son in the program right now, and we are in no hurry. We’re just going to take our time and when the time to jump into action arrives, we’ll know it.

    This is the biggest transaction of just about anyone’s life. Why would they want to rush through it anyway?

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #71168
    vrundmc
    Participant

    @TTrumble – is there anyway for you to help us here? Our P&S was submitted and then entered 2-3 days after submission. The rate went up on the day we received our LE. We then did our bank app two days after the LE. I even think a rate hike at that point seemed wrong given market conditions, would you be able to verify the rate for that day?

    Right now, we are stuck waiting for our local county to send title info – it would be great if something can be done during this time.

    #71183
    frankysmom
    Member

    Our ratified contract has been received and we have an appointment tomorrow for credit access. I desperately want to lock in this rate today but the secretary told me that will be discussed during tomorrow’s meeting.

    Is this normally how this is done? @ttrumble

    I thought the protocol is for the MC to enter the ratified contract into NACAs system on her end. That is what generates the “intent to proceed” email which temp locks your starting rate.

    It’s only a day away but I swear I’ve seen the rate change on a weekend so I am anxious to get it done already. Thanks

    #71201
    frankysmom
    Member

    Update, Told it was sent after hours on Friday so on intent to proceed email will be sent on Monday. I thought it was sent automatically? So someone at BOA has to set the wheels in motion.

    If that’s the case, Praying it’s done in the morning before any rate change.

    #71203
    sweetlilly
    Participant

    is there still such a thing as BOA automatically contributing .50% to interest rate Buy-Down if a Priority members’ income is about 80% of the MSA in the area they are buying?

    Anybody knows?

    #71205
    Nelsont
    Member

    Yep. 80% or below. It’s automatic but it’s not nationwide. It’s only in some MSAs. @ttrumble posted about it a few months ago. The list is not advertised and unpublished like boa is offering in test markets or something. There’s about 2 dozen MSAs on the list and they are generally the big cities where a comparitively large socio economic and demographic divide exists.

    I really don’t know the list but as a hypothetical example nyc would be more likely to be included than Albany Syracuse or buffalo.

    #71206
    sweetlilly
    Participant

    @Nelsont Got it!
    Thanks

    #71209
    MojoRysing
    Participant

    This was copied and pasted from that post;
    Here are the qualifying MSA’s

    PHOENIX-MESA-SCOTTSDALE AZ
    ANAHEIM-SANTA ANA-IRVINE CA
    FRESNO CA
    LOS ANGELES-LONG BEACH-GLENDALE CA
    OXNARD-THOUSAND OAKS-VENTURE CA
    RIVERSIDE-SAN BERNARDINO-ONTARIO CA
    SACRAMENTO-ROSEVILLE-ARDEN-ARCADE CA
    SALINAS CA
    SAN DIEGO-CARLSBAD CA
    SSANTA CRUZ-WATSONVILLE CA
    SANTA MARIA-SANTA BARBARA CA
    DENVER-AURORA-LAKEWOOD CO
    BRIDGEPORT-STAMFORD-NORWALK CT
    NEW HAVEN-MILFORD CT
    WASHINGTON-ARLINGTON-ALEXANDRIA DC/VA/MD/WV
    WILMINGTON DE/MD/NJ
    FORT LAUDERDALE-POMPANO BEACH-DEERFIELD BEACH FL
    JACKSONVILLE FL
    MIAMI-MIAMI BEACH-KENDALL FL
    ORLANDO-KISSIMMEE-SANFORD FL
    WEST PALM BEACH-BOCA RATON-DELRAY BEACH FL
    SAVANNAH GA
    CHICAGO-NAPERVILLE-ARLINGTON HEIGHTS IL
    LAKE COUNTY-KENOS

    HA COUNTY IL/WI
    BOSTON MA
    CAMBRIDGE-NEWTON-FRAMINGHAM MA
    BALTIMORE-COLUMBIA-TOWSON MD
    SILVER SPRING-FREDERICK-ROCKVILLE MD
    DETROIT-DEARBORN-LIVONIA MI
    CAMDEN NJ
    NEWARK NJ/PA
    ALBUQUERQUE NM
    LAS CRUCES NM
    SANTA FE NM
    LAS VEGAS-HENDERSON-PARADISE NV
    BUFFALO-CHEEKTOWAGA-NIAGARA FALLS NY
    NASSAU COUNTY-SUFFOLK COUNTY NY
    NEW YORK-JERSEY CITY-WHITE PLAINS NY/NJ
    MONTGOMERY COUNTY-BUCKS COUNTY-CHESTER COUNTY PA
    PHILADELPHIA PA
    AUSTIN-ROUND ROCK TX
    DALLAS-PLANO-IRVING TX
    SAN ANTONIO-NEW BRAUNFELS TX
    RICHMOND VA
    VIRGINIA BEACH-NORFOLK-NEWPORT NEWS VA/NC
    SEATTLE-BELLEVUE-EVERETT WA
    TACOMA-LAKEWOOD WA

    BTW, the 80% figure applies to the MSA in which you are BUYING, not necessarily the one in which you presently live.

    #71211
    sweetlilly
    Participant

    @MojoRysing Thanks!

    #71212
    MojoRysing
    Participant

    No prob. I had asked about it before and Tim Trumble posted that.

    #71220
    mrstaylor
    Member

    For the 80% of MSA, they won’t include household member’s income right? since that’s not used for the qualification amount.

    #71221
    Nelsont
    Member

    Income is only included if they are being qualified with you. Debt is always included regardless of qualification.

    #71222
    frankysmom
    Member

    When is the “intent to proceed” email sent and is it automatic? @nelsont

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