Guide to Mortgage Lock-ins
Will Your Lock-In Be in Writing?
Some lenders have preprinted forms that set out the exact terms of the lock-in agreement. Others may only make an oral lock-in promise on the telephone or at the time of application. Oral agreements can be very difficult to prove in the event of a dispute.
Some lenders' lock-in forms may contain crucial information that is difficult to understand or that is in fine print. For example, some lock-in agreements may become void through some unrelated action such as a change in the maximum rate for Veterans Administration guaranteed loans. Thus, it is wise to obtain a blank copy of a lender's lock-in form to read carefully before you apply for a loan. If possible, show the lock-in form to a lawyer or real estate professional. It is wise to obtain written, rather than verbal, lock-in agreements to make sure that you fully understand how your lender's lock-ins and loan commitments work and to have a tangible record of your arrangements with the lender This record may be useful in the event of a dispute.
Will You Be Charged for a Lock-In?
Lenders may charge you a fee for locking in the rate of interest and number of points for your mortgage. Some lenders may charge you a fee up-front, and may not refund it if you withdraw your application, if your credit is denied, or if you do not close the loan. Others might charge the fee at settlement. The fee might be a flat fee, a percentage of the mortgage amount, or a fraction of a percentage point added to the rate you lock in. The amount of the fee and how it is charged will vary among lenders and may depend on the length of the lock-in period.
- Page 1 - Introduction?
- Page 2 - What Is a Lock-In?
- Page 3 - Will Your Lock-In Be in Writing? - Will You Be Charged for a Lock-In?
- Page 4 - What Options Are Available for Setting the Mortgage Terms?
- Page 5 - How Long Are Lock-Ins Valid? - What Happens if the Lock-In Period Expires?
- Page 6 - How Can You Speed Up the Approval of the Loan?
- Page 7 - Ask About Lock-Ins - Lock-Ins and Fees - Loan Processing Time - Expiration of Lock-Ins
- Page 8 - Complaints About Lock-Ins
- Page 9 - State Agencies - Federal Agencies
