There is a line on the sales contract which reads “interest rate not to exceed, ____”.
Although important, usually gets overlooked. Usually, we match the rate the lender provided. Or write in the ‘prevailing rate’.
Now, more than ever, we need to consider this line. It’s important for buyers to know what this means to them. For their monthly payment. To understand what they qualify for.
If the rate goes up during the time after you receive your pre-approval and the time you put in an offer.
The same price range your budget allowed for, will make your payment higher. What you can afford may go down.
