Will Your Lock-In Be In Writing?

Each lender may do things differently. Some may have pre-printed forms that specify the precise terms of the lock-in agreement. Other lenders might make a verbal lock-in when you are getting your application or on a telephone conversation with you. Verbal agreements will obviously be challenging to establish in an event of a disagreement between you and your lender.

You should always read the fine print as well as ask questions of your lender if there is something that your see in the agreement that your do not understand clearly. There may be certain clauses in the agreement that make it void through a certain action on your part so be sure to find out what they are. It would be a smart choice to get a blank copy of the lender's rate lock-in from and read it cautiously before you make a decision to apply for a loan. You may also get a real estate agent or a lawyer to look at the form just to see if there are any discrepancies.

It is a good idea to get all the terms from your lender in writing as opposed to a verbal lock-in agreement just to be sure that you completely understand the terms and the loan commitments. A written lock-in agreement is proof and a record of the terms that were discussed and agreed upon with the lender. This will prevent any future confusion or dispute between you and your lender.