Lock rate or wait

Yulp
Contributions:35

I have been approved for FHA but I got to know about another program offered by USDA and I meet most of those requirements

I am going to close in about 50 odd days and my lender is trying to put my application to the underwriter for USDA next week.Not sure but it might take atleast 2 weeks to hear back from them either positive or negative.

So ,I am in a dilemma whether I need to wait for 2 weeks to know whether I made in to USDA or forget that and go for FHA as the rates are really low .I am not sure till how long the rates will be in the low 5's.I am getting a 60 day lock at 5.000 with no points .Hopefully today rates might be lower

Is it worth taking a risk and waiting for 15 days ,the only plus point in USDA is no MI which can save lots over the years.

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September 11 2009 - US

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Replies (3)

Derek Tunison, "Dtunison"
- 5.0/5.0
- (1 review)
Contributions:87

I would float the lock currecntly because you are not closing within 30 days. Talk to your current lender and see what his advice would be. Good Luck to you.

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September 11 2009

Tony Grego, "tgrego"
- 5.0/5.0
- (1 review)
Contributions:25

Underwriting is getting very strict. If your lender has all conditions met I would stay with FHA. As for locking I would wait until the 30-day window.

Good luck
Tony

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September 11 2009

Christine Hynes, "LoanModSpecialist"
- 0.0/5.0
- (no reviews)
Contributions:543

The way the market is, rates are not really going anywhere. You would probably not want to lock now anyway as it costs more for a 50 day rate lock then a 30 day. Your mortgage person should be advising you on this. Get the FHA loan going and in the mean time the other one. Wait for 20 days as by then you will know what is going on with the other loan.