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Lock in Rate

My lender started talking about locking the rate; does that mean my loan is approved? I'm too shy to ask my lender because he might think I am dumb..
  • May 28 2010 - Corona
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Answers (10)

eee-ae-aj,

Thank you for taking my comment in the manner you did.

You have started several threads on various aspects of the loan process. All of witch should have be explained and verified of your understanding beforehand.

Also, I'm sure you've heard this many a time:"There are no stupid questions - only stupids answers."

From what I have gathered from your threads is there is poor communications between the two of you. You're too far in this now. But, it's not to late to establish some rules. That being, insisting on clear and distinct understanding of your loan process and progress! You deserve to know this. After-all you are the one that's picking-up the tab.. .... Happy funding, Rudi
  • June 02 2010
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Rudi - Thank you for your advise. I do look out for interests and have been trying very hard to negotiate for the lowest rates possible.. i just wanted to find out whether locking in has anything to do with approving the loan but unfortunately it doesn't look like the are related --- as David, Norm, and Oscar pointed out, they are not dependant each other.. Good thing is that I am one step closer to closing according to the underwriter.. I still have one underwriter condition but it looks pretty easy to compy.. I really appreciate everyone's opinions!

  • June 02 2010
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You are dumb, if you don't look out for your interests with the person that is performing this service for you. Why would you rely on others? Is that smart? .... Happy funding, Rudi
  • June 02 2010
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Stephen,
Based on your "spam" I think you misread the question since you didn't come close to an answer..........
  • June 01 2010
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I work for a direct portfolio lender.  We can lock your rate at application for 60 days, or you can float and lock later.  There is no upfront fee for the application or the lock or appraisal or underwriting finding (approval or not.)  If your loan does not close for any reason, including changing your mind, you walk away with no cost. 
The Mortgage Consultants here can lock your rate and start an application 365 days, 24 hours a day with our laptops that access the main computer.  Check other portfolio lenders for their lock policies.
  • June 01 2010
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I would first say don't be shy, this is usually a persons biggest purchase or investment of there life. I would call up your lender and ask him/her what stage your loan is in. Ask if your loan has been fully underwritten and approved (meaning the underwriter looked at your credit, financial position,etc and determined that you qualified for a mortgage in the amount that you asked for.) If so what are the "Underwriter's Conditions" if the conditions look easy and you are able to meet them 100% in a short period of time, I would then ask what the current rates are and if they are favorable to you, I would then suggest locking in the rate for what ever period of time is available to you at that rate, generally I would aim for a 30 day lock just to be on the safe side.
  • May 31 2010
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True locking and approvals are not dependent on each other.  I personally would not lock a loan until at least a conditional approval has been received, even if it just a automated approval.  Once I get a conditional approval, and the supporting documentation (like paystubs etc.) I feel I know my job well enough to be reasonably confident that the loan will close.  The act of underwriting should be to just verify the information entered on the application, not determining eligibility.  And by knowing my job, I am confident the data is correct.  Once that level has been met, then I will lock it.

So by responsible, I meant that the LO has done their job and should be 99% sure the loan will close.  Otherwise, why would you lock?

Yes I have advanced locked for a client and more than once the loan didn't close.  So as a normal practice, I just don't do it.  I also don't order an appraisal until I am sure the client isn't wasting their money. 

Hope this clears it up.  I should have been more complete in my first post.
  • May 29 2010
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 would think that a responsible loan officer would not offer to lock a rate until the loan has been approved.

why would you say that? One isn't dependent on the other.
  • May 28 2010
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I would think that a responsible loan officer would not offer to lock a rate until the loan has been approved.  But it does not mean that you are.  A loan can be advanced locked, meaning not yet approved.

I would suggest using a loan officer that you feel comfortable with.  So call them up and say, I am new at this so please help me.  If they dont know your are new to it, you will miss a lot of things cause they just won't point it out.

Don't be afraid, you are ok.
  • May 28 2010
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e - Deep breath... Repeat after me - "Mr./Mrs. Lender, did you lock the rate in for my loan?"

if yes -

"What's my rates and fees...Pause. can I see a GFE and Initial Fee Work Sheet please?"

if no -

"Okay,  what's you strategy for getting the rate locked in?"
Pause. "can I see a GFE and Initial Fee Sheet please?"
  • May 28 2010
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