Banker of­fers spe­cial Lock and Shop pro­gram on home pur­chase

New Haven Register (Sunday) (New Haven, CT) - - REAL ESTATE -

Mort­gage banker: Dave Stam­bone

Home value: $407,500 sin­gle­fam­ily pur­chase in South­bury Loan amount: $387,125

Loan terms: Con­ven­tional 30year fixed rate at 4.99 per­cent, no points

Back­story: A lo­cal real es­tate agent re­ferred a client to Stam­bone to be­come pre-ap­proved for a mort­gage.

The pur­pose of be­com­ing preap­proved is to de­ter­mine an in­di­vid­ual’s max­i­mum buy­ing power in or­der to pur­chase a home. This is a nec­es­sary piece that must be done prior to view­ing homes with a real es­tate agent.

Fur­ther­more, a pre-ap­proval let­ter from a mort­gage pro­fes­sional is re­quired by the real es­tate agent list­ing a home when ac­cept­ing of­fers on be­half of a seller. The let­ter lim­its the risk of a deal fall­ing through and in­creases a buyer’s cred­i­bil­ity.

A thor­ough re­view of in­come, em­ploy­ment, money saved and credit must be con­sid­ered when de­cid­ing what some­one may qualify for.

Stam­bone and the buyer ar­ranged a time to dis­cuss the buyer’s plans and el­i­gi­bil­ity over the phone.

The buyer was liv­ing with a rel­a­tive rent free and had no in­ten­tions of pur­chas­ing a home for at least six months. Con­fused, he thought it may be too pre­ma­ture to go through the for­mal process of be­com­ing pre-ap­proved for a loan.

Stam­bone ex­plained to him the value of hav­ing the let­ter in place in the event of sud­denly find­ing the right home.

The to­tal amount the buyer wanted to be qual­i­fied for was right on the edge al­lowed per in­dus­try guide­lines. There was no room to qualify for a higher pay­ment and adding a co-signer was not an option.

A pri­mary con­cern was in­ter­est rates ris­ing and how that may af­fect the buyer’s fu­ture el­i­gi­bil­ity. If rates con­tinue to rise, this would re­duce the amount he would qualify for and would cre­ate a road block for him.

How­ever, Stam­bone and his bank of­fer a unique Lock and Shop pro­gram for their clients. What makes this pro­gram dif­fer­ent is that a pre-ap­proved buyer may lock an in­ter­est rate for an ex­tended pe­riod of time with­out hav­ing a con­tract on a spe­cific home.

Most banks and lenders will re­quire a signed agree­ment, in­clud­ing a clos­ing date with a seller, in or­der to se­cure a rate. On av­er­age, stan­dard rate locks will typ­i­cally max out around 60 days. The Lock and Shop pro­gram al­lows a buyer to lock an in­ter­est rate for up to 120 days, which was an at­trac­tive option to the buyer.

He found the per­fect home and closed 100 days within ob­tain­ing his pre-ap­proval.

Dave Stam­bone, To­tal Mort­gage Ser­vices,

203-240-9611, [email protected]­es­tam­

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