Loan Application – Within 7 business days after contract acceptance, you will need to pick a lender and make formal loan application. They will want a lot of information and I am waiting for the day that they will ask what color underwear you are wearing (just kidding). You will discuss locking in your interest rate or not and the pros and cons of each. They will collect $350 from you to pay for the appraisal and the credit report. This check will get cashed.
Maximum Interest Rate – This protects the Buyer. The contract calls for the Buyer to get with the lender within 7 business days. If the interest rate goes up significantly before the Buyer gets in to see the lender, then he can withdraw from the contract. This has never happened in my 15+ years, but in today’s squirrely economics who knows what will happen.