Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You, Second Edition by David Reed

Author:David Reed [Reed, David]
Language: eng
Format: epub
Tags: 0814415431 9780814415436 0814415458 9780814415450
Published: 2011-01-07T03:23:54.622000+00:00

M O R T G A G E C O N F I D E N T I A L

discount points or origination fees when obtaining a mortgage. I can

never seem to get the numbers to work out for paying more money to get

a lower rate.

CONFIDENTIAL: Rate Quotes Are Worthless Unless Your Rate Is

Locked In.

An interest-rate lock is an interest-rate guarantee. When you get the rate you want, you have to physically lock in that rate by telling your loan

officer, ‘‘Please lock that in.’’ Your loan officer will not lock you in automatically. It requires a literal request on your part.

There are various ways to lock in your rate, just as there are various

lenders and protocols. There is no universal standard as to when a rate is locked in, how it’s locked in, or who locks it in. Each lender can have a different method, but the effect is the same.

‘‘I want to lock that rate in for 30 days,’’ you say.

‘‘Sure, I’ll lock that in for you right now,’’ says your loan officer. ‘‘I’ll e-mail your lock confirmation right away.’’

At least, that’s how it should work. When it comes to your interest

rate, take no verbal guarantees. You need to get your rate lock in writing, by fax or by an e-mail confirmation. Accept no verbals.

One note: Before you get your rate lock guarantee, your loan officer

must first lock that rate in with the lender’s secondary department, or, if you’re using a mortgage broker, the broker must contact the wholesale

lender and get the rate locked in. Just because you’ve requested a lock

from your loan officer doesn’t mean that it’s automatic. You’re close, but it’s not official.

Most locks don’t require any fee if you’re locking for a 30-day period.

Longer lock requests might require money up front, but usually only if

you’re locking beyond 90 days.

Your loan officer must next lock you with his people, who will, in

turn, confirm that request to your loan officer. It is at this point that you should get your lock confirmation from your loan officer.

I point this out because I have personally been in situations where I

literally had several loans that all wanted to lock in at the same time

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