How Long Are Lock-Ins Valid?

Most of the time the lender will guarantee to hold a certain interest and a given number of point for you for a prearranged amount of time. In order for you to obtain those terms you must settle on the loan within that specified time period, otherwise you will lose the terms that were quoted to you. This is considered a lock-in; it is fairly common for a lock-in to be anywhere between 30 and 60 days. However, some lenders might only give you a lock -in for a short period of time such as 7 days and other lenders may offer you a very long lock-in such as one for up to 120 days. You should ask your lender if he charges a lock-in fee and if so how much is it since all fees will differ from lender to lender. The rule of thumb is that the longer the lock-in period is, the larger the amount of the fee will be.

The lock-in period is sufficient to permit for settlement and any other things imposed by the lender. Any paper work should be settled before the lock-in expires. Prior to you deciding on the length of your lock-in, you need to ask your lender about the average time for processing a loan and make sure to ask for a written estimate for the time needed to process your loan. Also, don't forget to consider the possible factors that may postpone your settlement. Some of those delays might include providing the lender with further documents about your financial situation or something that cannot be predicted. All these factors should come into play when you are deciding on the length of your lock-in.