Profile picture for Dan2k

Can I lock in mortgage rate with multiple lenders at the same time?

Is there any restriction as such in Minnesota for locking in rates with multiple lenders? For example, I lock in a rate for FHA loan with lender A and down the road if the interest rates go down, can I lock in the rate with another lender B at that point? or do I have to unlock with lender A before I lock in with lender B?
  • October 13 2009 - Minneapolis
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Answers (15)

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Profile picture for PrimeSource Funding

The rates that lenders can offer are based on how many loans they deliver to Fannie Mae or Freddie Mac. These entities require the lenders to provide loan delivery numbers in advance, this is why we lock loans. If a lender locks too many loans that do not get delivered, the pricing they can offer gets worse. Furthermore, in Minnesota it woul be illegal for Lender B to lock your loan if they knew it was locked with another lender. Hope this helps.

  • October 13 2009
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Profile picture for Cody Anderson
You shouldn't need to go to another lender to get the better rate. You can float the rate down with your current lender if he/she is willing to do the extra work.
  • November 14 2014
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Profile picture for flyinfish
How many whom answered are lenders and how many are consumers?  I've been burned by enough lending agents to not feel so emotional with my finances as you are all suggesting. A difference as little as $34 a month can add up to $12,240 over the life of the loan.  That's a lot of bones, so I give my allegience to the agent who adds the least fees on top of the prime rate. That's really what it's all about for the consumer from my point of view. Why do we consumers need to spend hours and days shopping a refinance when all lenders base their prices off of the prime rate?  The answer, my experience tells me, is some lenders try to squeeze a little more out of you than others via fees, points, etc.  If I thought I could trust a lender to have my best interest in mind then I would surely give them my allegience.  My life experience has told me not to trust lenders and to do all of your homework and ask all of the right questions.  And if any of the terms change not in favor of the consumer before or after the lock, cut ties and move on.

Jaded 
  • October 26 2014
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Profile picture for Cindy Quinton
Are you saying that you spent money on wood floors for a home you are under contract for (against advice?), and now your lender can't close? Why can't he close?
  • February 17 2013
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Typically you lock in the rate right before closing. Like what was mentioned earlier...if you tried to use two lenders at the same time you're paying for two appraisals. I also suspect this might mess up your title work.
  • February 17 2013
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You will have to explain in more detail.  What do wood floors have anything to do with your rate and/or approval?
  • February 17 2013
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Profile picture for user2328983
What if the mortgage broker you are using tells you to not buy your wood floors because if they don't make your mortgage exception (which is valid) then you can't close on the loan. I need a back up mortgage broker to come to the rescue! I already locked FHA rate with this one person but now I'm flipping out! Help! How quickly can I get out of the locked rate and case # she applied for so I can make a switch if I need to?
  • February 17 2013
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Profile picture for shapiroamg

How about this. Client goes to Broker A and locks. Broker A locked loan with Big Obvious Anybank. Client then goes to Broker B and askes to lock. Broker B locks loan with Big Obvious Anybank too. Well you are now commited to Broker A as BOA isnt going to lock the same loan twice.

  • October 13 2009
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I would assume you want a lender that works hard for you and is committed to you as a customer, right.  Well so do loan professional want customers that are open and honest with them.  If there are dramatic enough changes in a short time in rates, enough to make a switch viable, there is a good change that your lender could renegotiate a rate lock.

Lenders are measured by their lock fall out and pull through percentages.  Additionally, with FHA the case number has to be transfered so the first one that established it has to relinquish it. 

All the folks I know in MN are loyal and trustworthy, Ufdaa :-)
  • October 13 2009
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Great question, It is a handshake commitment and as well one's integrity when locking a loan. it is an agreement to do business together. Remember that if you are comitted to doing business with one specific lender and have locked a loan rate with them, many things are happening behind the scenes to make that happen and for the company you locked with to live up to their commitments. It is not good business ethics to lock multiple lenders. My suggestion is if you agree to lock, and lock has been confirmed make the deal work. Good Luck.

  • October 13 2009
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A MERS report would flush you out also. Some lenders pull those near closing.
  • October 13 2009
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Unless you want to pay for multiple appraisals, you can only move forward with one Lender.

I bet you are asking because you want to go with whomever closes you quicker. Most of that will all come down to you. If you are very proactive with getting your Lender loan docs and conditions, you will close on time. If you piece mail, drag feet and/or don't submit EXACTLY what they ask for,...the process will be brutal.
  • October 13 2009
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A lock is a promise.  By the lender and by you.

The honorable course is to lock and make an effort to close there.

Be part of making society more civil.
  • October 13 2009
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If you're going through brokers, the issue that can (and has) come up is if they lock you with the same lender (oops).

  • October 13 2009
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You can but you shouldn't.  Also with FHA loans a case # needs to be assigned and only one lender can do that at a time.  Pick one lender lock and close.

  • October 13 2009
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