I’d like to know when I should be withdrawing from my IRA if I plan to use funds from my retirement to buy down my rate. I’m in my 3rd month of saving payment shock and I will be receiving some gift funds and withdrawing from my IRA to buy down our rate. Can someone please let me know when I should withdraw from my IRA and when I should receive my gift funds?
Additionally, if I’m a ‘priority member’ how far can I buy my rate down? I was told at the workshop I can buy it down as low as .125 on a 30 yr fixed. Is that still accurate?
It’s not too soon to have it in there now. You will need to have it there before your bank app can be submitted, but it certainly isn’t going to hurt you if the funds are there before your file initially goes to underwriting.
You don’t technically buy your rate down until the day you close. When you put a contract in you will go to credit access and notify your MC how much you are buying down and they will work the numbers from there. Once you are credit access approved you will sign your bank application and bank of America will perform similar underwriting based on your buy down funds. You will receive a loan estimate in the mail that does not take this into account so don’t worry if the numbers are off. Probably a day or 2 before closing you will be notified by your title company exactly how much you need to bring with you at closing. All funds are paid at the closing table…probably about 20 minutes before you get your keys. Don’t worry though. Your buy down rate will be locked in at credit access.