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When is the interest rate locked in?

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August 06 - Littleton
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Profile picture for BayviewMortgage
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Since August 2009

If I see more lenders pulls on the credit report and the client wants me to lock in the loan.  My goodfaith say committment fee instead of origination fee. So once I get that committment from the bank. My fees are due. So the 780 dollar pull thru fee is covered if the loan doesn't close. . 
A Regulator with the Texas Department of Finance taught me to do it that way.The brokers lock-in isn't any good. it has to come from the Bank.
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August 31
Profile picture for CA UMB
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Mortgage Loan Help,

Twenty Bucks? Seeing this marvelous example of your 21 years of expetise exponded on this thread, what a deal! .... Rudi
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August 07
Profile picture for COLONIAL CREDIT CORP
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A rate is locked when the mortgage professional sends in a lock request to the lender. I do not lock any loans until all documentation is in from the customer and verified. Lenders look at your loan pull through and it is unwise to lock without all the facts being in.
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August 06
You can usually decide when you want the rate locked in.  The mortgage application and rate lock are two independent events, and deciding to float your rate will in no way slow down the application process.

Some lenders will automatically lock you in at application.  The problem you might run into with many lenders is actually getting proof that you did lock in.  Many times the broker with simply provide a 'worthless' lock agreement because their lender does not have anything formal.  Many times this many not help you if rates happen to go up or you are approaching the end of your rate lock term and have not closed. 

If you have not applied for a mortgage yet, I would suggest you ask prospective lenders to see a copy of the lock agreement ahead of time.  In addition, inquire in detail about their float down policy so that you are protected and can benefit from a decline.  I can tell you from my 21 years experience as Loan Officer, this was one of the biggest areas where problems were created.

Get it in writing first- and make sure you have the opportunity to float down the rate at least once.
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August 06
Once you ask the lender to lock your rate, the lender must than provide you a signed 'Financing Agreement' that shows the rate you have locked in, the points you are paying, the type of loan, the loan amount, and how long the rate is locked for.  Hope this helps.
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August 06
Profile picture for Barbara Q.
I understand Michael's point...But if you don't know then that's not a good sign. If you think your rate is locked...you should ask your lender to provide proof in writing...rate, points, fees as well as lock term. Otherwise...
you are playing roulette.
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August 06
If your lender/broker doesn't specifically say "your rate is locked", then it isn't.  Locked, incidentally, is not the same thing as "guaranteed".
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August 06
Profile picture for BrokerPro
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I suggest locking a loan only after submitting extensive paperwork including the application and key financial documents.  It's better to get an appraisal before locking so no one is surprised.

Technically, however, at some lenders, it's possible to lock over the phone with almost no documentation.
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August 06
Profile picture for agentblu15
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normally not locked in until you specifically tell your lender to lock it, and sign the preliminary paperwork to proceed with the loan.  Getting pre-approved does NOT lock your rate.
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August 06
Profile picture for 203K Specialist
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is this a philisophical question?  Is a loan ever really locked in?

It's locked in when it is locked in...Don't really get the question.
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August 06
 

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