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Lock in rates

My lender had to postpone my closing 4 times. This had them extend my lock in rate. I said let it expire and we can lock in to the new rates. They told me I would have to wait 30 days before I can lock in again. Is that common?
By claire.dusseault130 from MI May 29th 2014
Reply

Depends on the lender policy - Read your lock agreement that was signed at time of your rate lock.If your rate has expired, typically it will be at worst case scenario.Current rate at the same lock window or locked in rate.Was the delay because of the lender fault or yours?

May 29th 2014

Every lender has their own policy regarding rate locks. Depending on why the closing was postponed I might try and get the responsible party to pay for some of if not all the cost to extend. Most lenders seem to have more wiggle room then they let on.

May 29th 2014

It is typical to have to wait 30 days to lock in at current rates. It is not typical for the lender to have to extend your lock 4x unless there is something very unknown and unusual in your file or you were not cooperating in supplying requested documentation. Otherwise the rate should not have been locked until the lender knew they could close in that time period.

May 29th 2014

Hi Claire, This will vary lender to lender, but the situation you describe is not uncommon. It is uncommon to have to extend 4 times though. What was the holdup? If the reason for the delay was strictly the lender's, you should certainly fight to have them pay those extensions. If the delay was due to you or another third party not providing proper documentation on time or a subordination of a second or some other reason, you probably won't be able to recoup those extension fees.

May 29th 2014

Yes that is common... Very common. What is the problem? I've been doing this 24-years and I've NEVER postponed a closing 4 times... Also, you should check with the lender. At our company, if the the delay is out fault, we cover lock extensions. If it is your fault, you cover the lock extension.www.StPaul-Mortgage.com

May 29th 2014

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