If the mortgage rate lock expires, the buyer may face a higher interest rate that increases their monthly payment and DTI ratio. This can jeopardize their loan approval, violate the co-op board's financial requirements, or cause the buyer to walk away. Prevent this by tracking the lock expiration date and accelerating any remaining steps. If an extension is needed, the buyer typically pays 0.25-0.50% of the loan amount for each extension period.
From the seller playbook: Contract-to-Close Critical Path Mapping
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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