Earnest Deposit

[Anonymous]

Yesterday I spoke at length with our Loan Processor from Chase. She was very helpful and says that she is really pulling for our file. My EX score that was used is 629 and my fiance is 692 also from EX. She has given me a list of things needed before she can submit to underwriting. One of those things that was included was to show that the EMD was paid. We used a cashier's check, so is having a copy of that sufficient? I was under the impression that if you used a cashier's check as opposed to a personal one then you wouldn't need to show that it cleared etc.

The other question I have is, our rate lock expires 6/14. She was telling me that now we really need to expedite this. Does this mean that we have to close by 6/14 or at least have the commitment by then?

Thanks In Advance This totally has me on edge!

[Anonymous]

I am not too sure about you first question, but I am guessing they are not concern about if it cleared, but were the money came from.

You will need to close by 6/14, or the rate lock will expire.  Once it expires you will have to relock the rates at this time you can get a higher or low rate.  Some lenders may offer a rate extension, and there is a fee associated with this.

Why is the rate expiring so soon and your paper work has not even gone to underwriting yet, did you lock the rate before even getting an accepted contract on a home?

[Anonymous]

Thanks Shazer,

We locked the rate on 5/14, a week after we received the signed contract from the seller. But our attorney gave us an estimated closing date of July 1 so the LO figured we had time. Now we are scrambling which is exactly what I didn't want to happen.

[ShanetheMortgageMan]

The title/escrow company you paid the escrow deposit to very likely made a copy of the check, so they can provide that as well as a receipt stating they received that check.

When your rate expiration date is upon you, your loan either needs to fund by then, you need to extend the rate lock (which if rates are worse, then it usually costs to extend it, or if rates are better, then it is usually free to extend), or you can let it expire and re-lock in an interest rate afterwards (usually is worst case rates between when you originally locked in and the current prevailing interest rate, until 30 days after the expiration date, then a prevailing interest rate can be selected which is lower than the originally locked in rate).

[Anonymous]

Thanks Shane,

I was alittle worried about it but our Processor already has all of our paperwork so I think even if the UW came with conditions I think we just might be able to complete all of that by the 14th so I am trying to be optimistic.

I have a copy of the EMD, is that sufficient or will it look better to show it from the title company?

[ShanetheMortgageMan]

If you have a copy of it that is fine, but if you didn't make one then the title company should still have a copy too.

[Anonymous]

Great, thanks Shane!