Lock-In Questions
Increase the likelihood of getting the terms you wanted by learning as much as you can about the lender’s requirements and what they are promising before you apply for a loan. Here are a few simple questions to ask lenders while shopping for a home loan:
Lock-Ins and Fees
- Does the lender offer a lock-in of the interest rate and points?
- At what point will the lender allow you to lock-in rates and points? When the loan is approved? When you apply?
- Will the lock-in be in writing? If the lender does not put it in writing then you will have no record of the agreement in case there is a dispute.
- Is there a fee charged to lock in the interest rate and points? 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 the lower interest rate? Will there be a fee associated to doing this?
- Can you float your interest rate and points for awhile and then lock them in later?
Loan Processing Time
- How long does the lender expect it will take to process your home loan request?
- In recent weeks, what has been the lender’s average time to process a home loan?
- Has the lender’s volume of home loans increased recently, causing the average process time to increase?
Expiration of Lock-Ins
- If the lock-in expires before settlement, what rate will be charged?
- If settlement doesn’t occur before the lock-in expires, will the lender refund some or all of your application or lock-in fees in the event you cancel your loan application?
- If your lock-in expires and you want to get another lock-in at the rate in effect at the time of expiration, will the lender charge an additional fee for the second lock-in?
