Attending Mortgage Question

[ironmaiden]

How far out will the banks let you close once you have a contract in hand?

(Pre tax income in the $200K range, minimal credit card debt, 1 car pmt, student loan debt moderate, good credit score, spouse will still have crappy resident income of 40K)

House we are interested in is only 375K, which is about half of what the others in the same field are paying straight out.

90 days before starting?
120 days before starting?

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[mshheaddoc]

I know people who have pre-approvals 6-9 mns out. 90-120 days isn't unusual from what I have seen. I would suggest you start it the sooner the better. Usually most people already have the mortgage started before they have a house so you are ahead of the game.

I have never heard of hold out on a mortgage for an extended period of time (over 6 months) unless it was new construction. But that is just my personal experience.

Jocomama might have another experience to share but to my knowledge usually 90-120 I'd consider standard.

 

[Jocomama]

1) I support msheaddoc: approval of assets and credit are good for 90-120 days. Verify with your mortgage bank.

2) Rate locks are good for up to 14 months. It is bank dependent. Countrywide has a 14month lock; most others are 12 months.

I did this for 2 clients in the 2004-2005 year.

However, most lenders require an extended rate lock fee, and then you get into the hard lock, vs float-down, etc. You need to discuss these with your mortgage banker; not appropriate for me to get into such detail on this forum.

Thanks

How far out will the banks let you close once you have a contract in hand?

(Pre tax income in the $200K range, minimal credit card debt, 1 car pmt, student loan debt moderate, good credit score, spouse will still have crappy resident income of 40K)

House we are interested in is only 375K, which is about half of what the others in the same field are paying straight out.

90 days before starting?
120 days before starting?