Lock-Ins and Fees
- Does the lender offer a lock-in of the interest rate and points?
- When will the lender let you lock in the interest rate and points? When you apply? When
the loan is approved?
- Will the lock-in be in writing? If the lock-in is not in writing, you will have no
record of the lender's agreement with you in case of a dispute.
- Does the lender charge a fee to lock in your interest rate? Does the fee increase for
longer lock-in periods? If so, how much?
- If you have locked in a rate, and the lender's rate drops, can you lock in at the lower
rate? Does the lender charge you an additional fee to lock in the lower rate?
- Can you float your interest rate and points for now, and lock them in later?
Loan Processing Time
- How long does the lender expect to take to process your loan?
- What has been the lender's average time for processing loans recently?
- Has the lender's loan volume increased? Heavy volume might increase the lender's average
processing time.
Expiration of Lock-Ins
- What rate will be charged if the lock-in expires before the settlement?
- If you don't settle within the lock-in period, will the lender refund some or all of
your application or lock-in fees if you decide to cancel the loan application?
- If your lock-in expires and you want to get another lock-in at the rate in effect at
the time of the expiration, will the lender charge an additional fee for the second lock-in?
This information is adapted from "A Consumer's Guide to Mortgage Lock-Ins" published by
the Federal Reserve Board and the Office of Thrift Supervision.
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