Several months ago, just at the time interest rates started moving up, I had done a preapproval for this guy. Just at the time he was ready to go forward with an offer he had called me to review what the monthly payment would be. As we went through this process, he asked what rate that I was using and told him 4%.
At the time I originally did his preapproval, he asked what rate I used and told him 3.5% was the rate that day. I am always explaining rates that day, rate trends and the importance of checking with me, just before moving forward on an offer. He told me that he would keep me posted on the offer. That was 7 months ago.
This morning he called me asking if I would consider working with him again. Of course I would, but thought a transaction had already happened. He told me that he over reacted to my letting him know that rates had gone up and went online to rate shop. He had gotten a preapproval at 3.75% at the time and went forward with the offer and entered into an agreement to purchase the home. As he went through the application process, which he said took forever, but just before the closing was informed that his loan was never locked and his rate was going to be 4.25%.
He said he felt trapped, but went forward. The day before the closing he was told based on the higher rate, he no longer qualified for the mortgage. He told me that it took him a few months to get over the shock of the entire experience and now was ready to go forward to purchase a home. I went through the numbers with him, gave him the preapproval and sent him back to his Realtor, so that he can find a home again.
The experience this first time home buyer went through makes all of us in the mortgage business look bad.
At the time I originally did his preapproval, he asked what rate I used and told him 3.5% was the rate that day. I am always explaining rates that day, rate trends and the importance of checking with me, just before moving forward on an offer. He told me that he would keep me posted on the offer. That was 7 months ago.
This morning he called me asking if I would consider working with him again. Of course I would, but thought a transaction had already happened. He told me that he over reacted to my letting him know that rates had gone up and went online to rate shop. He had gotten a preapproval at 3.75% at the time and went forward with the offer and entered into an agreement to purchase the home. As he went through the application process, which he said took forever, but just before the closing was informed that his loan was never locked and his rate was going to be 4.25%.
He said he felt trapped, but went forward. The day before the closing he was told based on the higher rate, he no longer qualified for the mortgage. He told me that it took him a few months to get over the shock of the entire experience and now was ready to go forward to purchase a home. I went through the numbers with him, gave him the preapproval and sent him back to his Realtor, so that he can find a home again.
The experience this first time home buyer went through makes all of us in the mortgage business look bad.
