My significant other and I are trying to close on a house using a USDA loan and found out the hard way that they do a 2 step underwriting process. This means that the loan is reviewed by the USDA after it was reviewed by our lender. Every other part of our buying process was ahead of schedule, but now we’ve missed our target date and the rate lock expires tomorrow.
USDA won’t give lender anything more than a vague “the file was put back in line” after they asked for one simple correction. (Tax dollars at work it seems)
Today I asked my lender about what an extension of the rate lock entails and he told me it was something like $36 per day. The rate we had was 3.125. I’m not necessarily too worried about the rates having risen – I’m just concerned about any type of delays that would arise from not extending the lock.
So I’d like to ask, if you were in my position and you were on week 4 of USDA underwriting – would you pay $36 a day to extend the rate lock? Does anyone have any recommendations? USDA won’t let us ask them anything directly and the lender seems as frustrated as we are. Can’t see why they wouldn’t approve the loan – they just won’t tell us any ETA.