4 Thoughts on How much advance notice does a mortgage broker need to buy down mortgage rate?
  1. Reply
    January 26, 2014 at 2:09 pm

    Ask the broker – not us.

  2. Reply
    Johnny Mac
    January 26, 2014 at 3:08 pm

    Usually its just a matter of a couple days to change the paperwork and get it to the title company. It is not usually something that needs to back through underwriting unless the points your buying effect things like your debt to income ratio.

  3. Reply
    January 26, 2014 at 3:14 pm

    Yes, it could delay your closing. In todays world with computers they should be able to make the change and still send the package over in time for closing.

  4. Reply
    January 26, 2014 at 3:33 pm

    You can still do it, but you will not be able to close on time.
    If your closing is scheduled for Monday, your closing docs have already been prepared and are at the title/closing company. These docs will need to be redone.
    It is also not as simple as pushing a button and changing some docs.
    Your mortgage file has been approved by an underwriter with the figures the way they were presented to him/her.
    Buying down a mortgage rate costs money. Sometimes buying down your rate by as little as .125 can cost 1% of your purchase price or more.
    Depending on the documents already in the mortgage file, you may not even get approved for that. If they have not verified enough cash in your accounts (even if you have it), you will need to produce more documentation.
    Even if they have enough documentation to show that you have enough cash (or credits) to buy down the rate, after they change the figures it would need to go through automated underwriting again. After automated underwriting, it would have to go to a human underwriter to sign off on everything.
    None of this happens overnight… and most certainly doesnt happen over a weekend!
    I don’t know your circumstances for asking, but this question is most often posed to me when buyers ask for a closing cost credit of xxxxx dollars, and then get final figures and find that xxxx dollars of that credit aren’t being utilized.
    If that is your situation, just know that it is absolutely impossible to estimate to the penny how much of a credit is needed. If a borrower indicates that they do not want to spend any of their money out of pocket, they will end up with an unused amount of a credit. If a borrower is ok with spending some of their money, then they do not end up with an unused amount of a credit. It is never possible to get this down to the penny.
    Let me know if you need any more information!

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