Ask About Lock-Ins

If you decide on a loan, you will obviously want to get the terms that were quoted to you at the time of the settlement, which is exactly why you should ask your lender to discuss lock-ins with you. It is crucial for you to find out as much as possible about what the lender is promising you before you go ahead with applying for your loan. You should ask the following questions in order to cover all you need to know:

Lock-Ins and Fees

• Are lock-ins of the interest rate and points offered by the lender?
• When does the lender allow you to lock in the interest rate and points? When should you apply? Approximately when will the loan be approved?
• Will the lender give the lock-in in writing? If the lock-in is verbal instead of written then you will have no proof of what the lender promised you in case of a disagreement or a misunderstanding.
• How long does the lock-in last? When will it expire?
• Will the lender charge a fee to lock-in your interest rate and/or points? Do the fees go up for longer lock-in periods? If they do then by how much?
• If you locked in a certain rate and the lender's rate drops, can you lock-in at the decreased rate? Will the lender charge you an extra fee for locking in at a lower interest rate?
• Do you have to lock in your interest rate and point right now, or can you do it anytime between the application for the loan and the settlement?

Loan Processing Time

• What amount of time does the lender need to process your loan?
• What was your lender's average time in processing loans?
• Has there been an increase in the lender's loan volume? If the lender's loan volume did increase then the time that it takes to process a loan will probably increase as well.

Expiration of Lock-ins

• What rate will the lender charge if the lock-in period comes to an end before settlement?
• What will happen if by any chance you don't settle your loan within the lock-in period? How much money (if any) will the lender refund to you for the application or lock-in if you decide to cancel your loan application?
• If your lock-in expires and you still want to get another lock-in at the rate that is in effect at the time of the expiration, will the lender charge you an additional fee for the new lock-in?