Changing Buy Down during Bank App Process

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  • #76456
    jacoryc07
    Participant

    Is it possible to change your buy down amount during the bank app stage? I am doing a new construction and waiting on it to be completed. I have already been bank app approved, just waiting on final appraisal and VVOE.

    #76457
    Nelsont
    Member

    Unfortunately not.

    The underwriting process includes determining if the buy down amount is sufficient, whether you can afford the monthly payment after buy down, whether you can afford spending the buy down amount, where it came from etc. The loan paperwork is drafted with the interest rate after buydown.

    In short you would need to start over with a brand new contract offer go through credit access and then sign a brand new bank application (this would be true for any bank including FHA – you can’t just change the terms mid process).

    #76458
    Kristijay
    Participant

    Yes you can. You will NOT have to start over with a new contract. Your MC will need to submit a change of circumstances (COC) and they will ask for updated bank statements. I had a COC done just prior to closing on my new construction for that exact reason.

    #76459
    jacoryc07
    Participant

    Thank you @kristijay! Did you increase or decrease your amount and did it take long for BOA to process? Thanks in advance!!

    #76464
    Kristijay
    Participant

    @jacoryc07 It was increased. They initially entered my buydown incorrectly, but had me wait until just prior to close to submit the COC to fix it.

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