Mortgage commitment?

Yes you do need a commitment and yes you can feel free to change banks afterwards. You will need new commitment from the new bank. We do offer a free float down option so you are rate protected. sunny_hong@countrywide.com

roy, yes you just need a commitment letter for the co-op. you are free to switch the co-op doesn't really care which bank funds the sale. some places will charge you upfront fees either an application fee or a brokerage fee to ensure that you don't waste the brokers or banks time. obviously if you go and work with a broker or bank, take a commitment letter from them start the process and go elsewhere because you found a better rate because the rates dropped and you locked the rate up. that is insane. if however you price the loan and you are quoted the lowest rate with closing costs and you decide to float the rate and rates improve then you will benefit from that mkt movement. however if you feel comfortable with todays rates (which are historically at 50 year lows) and you aren't trying to get the actual 50 year low rate then todays rates are great.
also, i have to disagree with other comments, having said that, there is no such thing as a 'free lunch' (free float down option) you pay for it one way or another, don't ever believe otherwise, if you are interested in a free consultation and i will quote you will all expenses in at closing. feel free to contact me direct at 646-419-4192 Daniel at dledven@customcapital.net

you CAN switch banks mid-process, but at some point in the process you'll have to file recognition agreements -- which we all call "Aztechs" because that's the form they're printed on.

An Aztech basically says that the co-op knows that there's a mortgage on the apartment, and that they recognize that the lender is first in line to scoop up the assets -- the underlying shares and the proprietary lease -- in case of a default.

The trap you want to avoid is getting a loan, filing your Aztechs with the co-op board, having them signed off on, and then having your loan change. If that happens, you need new Aztechs with new board approval -- it isn't just one of those things you can change on the form -- and yes, it can screw up your closing.

ali r.
{downtown broker}

dledven - We do have a free float down option. You can disagree all you want but the fact is that we do have it. Any cost associated is taken by my P&L and not at the expense of the customer.

shong, stop it

Sorry but I have nothing to prove to you. Have a nice day.

Hi

Thank you for the replies. OK, so I have to get a commitment letter asap. I think my RE agent is getting the mortgage broker she works with to do some (or all) of the paperwork? I still have to sign it or something, right?

In any case... does the floatdown even apply? Again, sorry if this is normal and easy, but its sort of new to me (did it once, didnt pay attention back then)...

Sign contract (next week)
Get mortgage commitment (next week)
Put together application (2-3 weeks)
Meet with the board (4 weeks)
Inspection (5 weeks?)
Close July 27

So with standard 30 day lock, I wont even lock in until June 30th. However, I have to pick a bank now? What if I pick bank A today cuz the are offering 6%. But on June 30th bank B is offering 5.75?

I think the floatdown applies only AFTER I lock, right? So if I lock at 6 and it goes down to 5.75, I can adjust down? Previously, I think I was told I had one "free" adjustment during the lock period. After that, I would have to pay... and I think it was a lot, meaning rates would have go down like .25 for it be worth it.

Sorry for the newbie questions.

just lock for 45 to 60 days (pick time frame that will cover you), and then you won't have to worry, its cheaper to lock for the longer term, then lock and go for an extension or risk the rates today with inflationary worriers.

are you looking at conforming rates or jumbo? what is your purchase price? and loan amount?