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julaney · Joined: 11 Nov 2009 Posts: 3 1.85 Dollars($)

Sorry for double posting but I previoulsy posted this question in the wrong forum. Will a last minute reduction to my loan amount impact my closing date? I have been approved to barrow 334K for an equity buyout loan which gives my ex domeatic partner 255 K for the buyout. We have determined that the buyout should be 225K so I need to reduce the load amount accordingly. This type of loan does not allow the buyer to receive any additional cash at closing. Closing is scheduled for next Monday.

Guest

If you have to reduce the loan amount by a significant dollar figure, then your loan will have to be resubmitted for a new aproval and yes this could delay closing.
If the dollar amount isn't significant, ask your mortgage company if you can just do a principal reduction so you can close without delay.
Good Luck!

gmakerley · Posted: Wed Nov 11, 2009 3:03 pm Post subject:

not only will underwriting have to look at this again, but any changes that affect annual percentage rates must be re-disclosed under the truth in lending law changes that recently too effect. this also means a built-in delay of a minimum of 7 days.

Posted: Wed Nov 11, 2009 3:40 pm Post subject:

The loan will need to be reduced by 30K (from 330k to 300K). No other changes should be necessary. Can you do a principle reduction for that amount withou delaying closing?

julaney · Joined: 11 Nov 2009 Posts: 3 1.85 Dollars($)

BTW... the last post is a follow on qestion from the original author (Me)

adonis · Posted: Wed Nov 11, 2009 8:49 pm Post subject:

Hi julaney,

I don't think the changes can be done immediately. If you want to incorporate the changes, the closing will be delayed as the you will have to wait for a new approval.

gmakerley · Posted: Thu Nov 12, 2009 2:27 pm Post subject:

to be perfectly frank, you're asking the wrong group of people. you should be speaking directly with your lender to ascertain what a reduction would do.

in my opinion, nevertheless, you ought to be able to obtain a quick approval, inasmuch as you're borrowing less (assuming you have sufficient assets verified by the lender already). inasmuch as this reduction wouldn't appear to be something that would change your apr, then the new truth-in-lending laws wouldn't seem to apply here.

you need to have this conversation with the lender - your loan officer, the processor, whoever has their hands on your file - so that you can expedite the process. and, needless to say, you need to do this immediately.

Blue_sky4399 · Joined: 13 Nov 2009 Posts: 3 1.32 Dollars($)

U want to contact with moderator

gmakerley · Posted: Fri Nov 13, 2009 11:47 am Post subject:

"moderator" isn't quite the term you are looking for...call your lender, please, and ask them to direct you.

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