I'm buying a new build that won't be completed until mid-October. I signed the contract last weekend. I'm preapproved with NFCU for their 5/5 arm. The builder rep sent me an email asking for my preapproval. I emailed it back last night.
He just sent me another email asking who my loan officer is and their contact info as it wasn't listed on the preapproval. They need it so that they have it to close.
I sent back an email saying that I am not starting the loan process until we are 30 days out because I'm doing a 30 day rate lock. We are still 60 days out and the builder is concerned that my hardwood floors won't be completed in time because the hardwood is on backorder. So he's already sweating that and that may delay us a little further.
I won't be assigned a loan officer until I actually apply for the loan which I haven't actually done yet.
My question is, is it not normal for loans to be started 30 days out? Why would I start the process early when they even state in their contract that they aren't responsible for rate lock changes due to delays. I also want to pay off all my debt when I receive my equity this week to get the best rate possible. And that won't be reflected if I apply this early.
Can someone shed some light on why they would be needing all the info so far in advance? Is this situation out of the norm? Can they cancel my contract if I don't apply yet? I did give them a $5000 EMD as well.
On my last new build purchase they didn't ask for it until we were 3 weeks out from closing so I'm a little confused about it.
Please advise.
Thank you!
He just sent me another email asking who my loan officer is and their contact info as it wasn't listed on the preapproval. They need it so that they have it to close.
I sent back an email saying that I am not starting the loan process until we are 30 days out because I'm doing a 30 day rate lock. We are still 60 days out and the builder is concerned that my hardwood floors won't be completed in time because the hardwood is on backorder. So he's already sweating that and that may delay us a little further.
I won't be assigned a loan officer until I actually apply for the loan which I haven't actually done yet.
My question is, is it not normal for loans to be started 30 days out? Why would I start the process early when they even state in their contract that they aren't responsible for rate lock changes due to delays. I also want to pay off all my debt when I receive my equity this week to get the best rate possible. And that won't be reflected if I apply this early.
Can someone shed some light on why they would be needing all the info so far in advance? Is this situation out of the norm? Can they cancel my contract if I don't apply yet? I did give them a $5000 EMD as well.
On my last new build purchase they didn't ask for it until we were 3 weeks out from closing so I'm a little confused about it.
Please advise.
Thank you!
@bbb925 wrote:
I'm buying a new build that won't be completed until mid-October. I signed the contract last weekend. I'm preapproved with NFCU for their 5/5 arm. The builder rep sent me an email asking for my preapproval. I emailed it back last night.
He just sent me another email asking who my loan officer is and their contact info as it wasn't listed on the preapproval. They need it so that they have it to close.
I sent back an email saying that I am not starting the loan process until we are 30 days out because I'm doing a 30 day rate lock. We are still 60 days out and the builder is concerned that my hardwood floors won't be completed in time because the hardwood is on backorder. So he's already sweating that and that may delay us a little further.
I won't be assigned a loan officer until I actually apply for the loan which I haven't actually done yet.
My question is, is it not normal for loans to be started 30 days out? Why would I start the process early when they even state in their contract that they aren't responsible for rate lock changes due to delays. I also want to pay off all my debt when I receive my equity this week to get the best rate possible. And that won't be reflected if I apply this early.
Can someone shed some light on why they would be needing all the info so far in advance? Is this situation out of the norm? Can they cancel my contract if I don't apply yet? I did give them a $5000 EMD as well.
On my last new build purchase they didn't ask for it until we were 3 weeks out from closing so I'm a little confused about it.
Please advise.
Thank you!
If you are 60 days from closing it is not too far out at all to have already offically applied for your loan. In fact, I think it is unusual that the builder would have accepted your offer to purchase without having made application for approval by his lender or another lender.
It is not normal at all to not have your pre-approval in hand with all your documents sent to the lender via a LO that you made application with for this loan.
Take a look at your contract. There usually is a date within the 'financing' paragraph by which you have to make official application before you are in default. What does your date say? It normally is stated something like "within _____ days of effective date buyer shall make application for financing....."
I just heard back. He said our approval that I gave them was all they needed. He said not to worry about anything else. The preapproval had to be furnished within 30 days not the final loan approval and I already did that. So I'm back to good! He said just to send them the loan officer info whenever I get it next month. Thanks for the help!
He said just to send them the loan officer info whenever I get it next month. Thanks for the help!
But my document states "preapproved" not "prequalified". So that's why I'm confused. And the builder said what I gave them was what they wanted. I'm not going to complain. If there's a mistake it's working to my benefit right now being I want to pay off the debt first before applying. Maybe the good Lord is helping me out I'm not going to question anything else now that I know it's not normal.
I'm not going to question anything else now that I know it's not normal.