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Old 05-19-2008, 04:09 PM
 
Location: New Jersey
844 posts, read 2,793,307 times
Reputation: 660

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Can anyone explain the mortgage process to me?

My son is selling his Condo in NJ, and the buyer had an approval and committment for an FHA mortgage. The closing was scheduled for the end of the month, and things were going along good until last week, when the FHA found a clause in the by-laws they didn't like. There are other condo's that have sold in the development with FHA mortgages, but since the market tightened up, I guess the FHA has tightened up the rules.

In the mean time my son has put a 2-1/2 month deposit on a rental which he stands to lose.

The potential buyer has paid loan and inspection fees, and stands to lose those also.

When in the mortgage process do you know if the loan is locked in?
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Old 05-19-2008, 04:24 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,679,710 times
Reputation: 1008
Rate is locked in not the loan.
The loan is locked when it closes...

Quote:
Originally Posted by marc515 View Post
Can anyone explain the mortgage process to me?

My son is selling his Condo in NJ, and the buyer had an approval and committment for an FHA mortgage. The closing was scheduled for the end of the month, and things were going along good until last week, when the FHA found a clause in the by-laws they didn't like. There are other condo's that have sold in the development with FHA mortgages, but since the market tightened up, I guess the FHA has tightened up the rules.

In the mean time my son has put a 2-1/2 month deposit on a rental which he stands to lose.

The potential buyer has paid loan and inspection fees, and stands to lose those also.

When in the mortgage process do you know if the loan is locked in?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 05-20-2008, 05:17 PM
 
Location: Kansas City, MO
5,763 posts, read 10,149,733 times
Reputation: 2821
Quote:
Originally Posted by marc515 View Post
When in the mortgage process do you know if the loan is locked in?

The loan is never "locked in". The rate can be locked but that is not a guarantee of loan approval.

A loan is never 100% certain until it funds. You can go to the closing and sign papers and the loan still fall apart. Until the lender funds the loan, there is always that chance it wont be completed.
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