Off to Underwriting – Grant & Rate Lock Timing Questions

Home Forums Purchase Program Off to Underwriting – Grant & Rate Lock Timing Questions

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  • #62300

    So our file was submitted to Underwriting with no hiccups expected (fingers crossed!) My MC wasn’t able to clearly articulate the answers to my questions, so I’m hoping someone here may be able to. We’re buying new construction, and have actually already signed our contract based on our ATD experience and conversation with the Underwriter there.

    Does this mean our rate will lock when approval comes back from Underwriting, then? Our MC said it locks when we sign the contract.

    Also, we won’t go to closing until March 2020 – if the grants we originally expected during ATD come back into force in January, would we have the option of using them? Or will we be stuck with the 1/2% currently offered?

    #62308
    Liubov1989
    Member

    Hello, unfortunately, I can’t help you with the “grant” question. But all I know is that we locked our interest rate when we submitted the NACA Credit Acces with our Mortgage counselor (before the Bank Application).

    You submit the Credit Access way after your contract is ratified. I’m not a financial advisor, just saying how it was in our case. Hope, it helped.

    #62311
    Peapod0609
    Member

    Your rate should lock after you have an accepted contract uploaded to the NACA system and the loan estimate is sent out by the lender I believe. That is what my MC told me through email. So if you have already gotten submitted to underwriting for Credit Access, your interest rate should already be locked.

    However, it can still change because you can still add buy down funds and/or grants and what not. Think of the interest rate lock as two-fold. You get your “base rate” locked after the loan estimate is generated by the lender. At that point whether NACA’s daily rate goes up or down it does not effect you. And I believe at the bank app stage your final rate should be locked in and this will be taking into account any buyer/seller interest rate buy downs and/or grants as well. At that point I believe it will not change at all, but I could be wrong on that. In other words, your rate can’t go up right now but it can still go down if you add buy down funds!

    As far as the percent off grant, I am not sure about that, maybe @TTrumble can help answer that one? I would imagine if it goes back up to 1% next year they may be able to add that in for you, but that is just a guess on my part.

    • This reply was modified 11 months, 1 week ago by Peapod0609.
    #62574

    So it’s coming up on the end of the second week since we were submitted.. I figure with the holiday it may take a little longer than usual to hear back, but this is Day 11, so I’m, of course, getting nervous. When should I call again? I don’t want to harass anyone, but I do recognize the importance of self-advocacy in this program.

    #62575
    Nelsont
    Member

    Call today. There have been reports of 2 week delays recently but still call.

    #62576

    Tip for anyone else today: The offices are all closed. Looks like I’ll keep my britches on until Monday.

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