What should a broker do when a revised Loan Estimate shows an increased Annual Percentage Rate just days before closing?

When a broker encounters a revised Loan Estimate with an increased Annual Percentage Rate (APR) just days before closing, it is crucial to ensure that all parties involved are fully informed and that any potential implications of this change are considered. Delaying the closing can allow for a thorough review of the new loan terms, ensuring that all details are accurate and that the buyers understand how this change affects their loan agreement.

This action is essential because an increased APR could significantly alter the total cost of the loan over its term, potentially impacting the buyers' ability to afford the property and their long-term financial plans. By confirming with all parties involved and discussing the implications of the revised Loan Estimate, the broker ensures transparent communication and allows time for the buyers to explore their options, ask questions, and seek resolution before proceeding with the closing.

Proceeding with the closing as scheduled without addressing the revised terms could lead to potential legal or financial complications. It's important for all stakeholders, particularly the buyers, to understand any changes that could affect their financial commitments. That's why it's vital to confirm whether to delay the closing and ensure everyone is on the same page. This approach protects clients and maintains professionalism in the transaction.