Guide to Mortgage Lock-ins
Introduction
The Federal Reserve Board and the Office of Thrift Supervision prepared this guide on mortgage lock-ins to help consumers understand an important aspect of home financing. A fully informed consumer is in the best position to make a sound financial choice, and this guide will provide useful basic information about obtaining terms of credit. It will not provide all the answers a home buyer will need, but it is a good starting point.
When you're looking for a mortgage, you're likely to shop among lenders for the most favorable interest rate, and the lowest points and other up-front charges. When you find the most favorable terms and the lender that you want, you'll apply to that lender. But when you get to settlement, will you actually receive the terms you applied or bargained for? Or will you find that the rate has changed-and that your costs have gone up?
Lock-ins on rates and points might offer you a way to ensure that what you shop for is what you get.
All About Lock-Ins
In most cases, the terms you are quoted when you shop among lenders only represent the terms available to borrowers settling their loan agreement at the time of the quote. The quoted terms may not be the terms available to you at settlement weeks or even months later. Therefore, you should not rely on the terms quoted to you when shopping for a loan unless a lender is willing to offer a lock-in.
- 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
