Profile picture for Dexmit

If I lock in a rate with a mortgage broker, am I required to use that broker / bank?

  • June 10 2010 - Minneapolis
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Answers (6)

Yes according to MN law, but how does the lender know if you lock with another bank?   
  • July 27 2014
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Profile picture for cdfornal

A lock is just a guarantee on a rate until a certain date - by no means an obilgation to close with that lender. My guess the extent of your losses will be whatever you paid for the lock, but refer to your lock contract or local laws.

  • June 11 2010
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I agree with Nic unless you are unsatisfied for some other reason.
  • June 11 2010
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Peter,
Since neither of us are lawyers, let's leave the legal jargon to them. In the real world a loan commitment is unilateral and is only binding on lender. In the practical world Dexmit, why would you lock in with a lender if you were not satisfied with the terms or lender? If you continued to shop rates after you locked in WHY?
  • June 11 2010
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Your rate lock with a mortgage originator is a binding contract.  You can get out of it if the lender fails to approve your loan, or if there are severe customer service problems.  If you break that contract simply because the rates went down you are breaching the contract and the lender could sue you for lost revenue.  Lenders rarely ever sue clients for breaking lock agreements, but legally they could.

Peter Boyle
19 Years Mortgage Experience
[contact info removed by moderator]
  • June 11 2010
  • 0Yes

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No.  But at least give them a chance to compete with whoever else you are considering.

  • June 10 2010
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