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Informative Articles

Mortgage Delinquencies: Fact and Fiction
Kenneth Harney, a highly respected columnist for the Washington Post, expresses surprise in his column recently because home buyers in high-cost parts of the country like California, Hawaii, Boston and Washington, D.C. are not leading the...

Mortgage Refinance: 4 Ways To Know It's Time to Refinance Your House.
You may want to refinance your home for several reasons. 1)Mortgage Rates might be lower now. The biggest reason that people refinance their mortgages is to save money. No matter what has happened to you, there is always a good reason to start...

Mortgage Refinance - Tips To Help You Cut Fees And Costs
Saving money through a mortgage refi is more than just finding the lowest interest rates. You can further cut fees and costs through the structure of your loan, avoiding PMI, and buying lower interest rates. Close Credit Card Accounts Close...

Overcome YOUR Fear of Refinancing your Mortgage
You see the rates coming down. You hear about the great refinancing deals your friends are getting, but you haven't taken the leap. This was me 6 months ago. I am writing to say I have overcome my fears and it was WORTH IT !..... Refinancing...

What the Bank Won’t Tell You About Mortgage Refinancing
So you have a mortgage, and you need to refinance to get your interest rates low. Most people simply walk into their bank, ask to refinance, and then end up paying more money long term than they would have otherwise. Some banks would like everyone...

 
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Your Mortgage Rate Lock - Don't Let It Slip Away

It's a great feeling to know that you have locked your interest rate. You can now close your dream home with the payment you can afford. No worries about a volatile market. However, it is important that you read and completely understand the lock agreement that you signed with your lender.

Each state has different wording on the form, but it all comes down to disclosing the terms and conditions of the lock. The form will spell out the loan program, loan amount, loan type, interest rate, origination fee, number of lock days and lock expiration. Some even charge an up front non-refundable fee.

Closing on time means that the lender must disburse the funds by the expiration date. But what happens if the lender does not close on time? The lock agreement should clearly state what would happen. The loan will probably be locked at the higher of the previous lock price or current pricing. In rare cases the loan program could be discontinued


altogether.

Make your application journey a happy one. Discuss with the loan officer up front if the lock days are enough to meet the closing target date. Many loans require an appraisal. This is a key area and can be a time consuming part of the process. If the sales or refinance market is hot in your area it could take longer than normal to complete the appraisal. Be sure and cover estimated appraisal turnaround time with the loan officer during application.

During the loan process be sure and return any documentation quickly to the lender when asked. Be available to sign escrow papers in a timely manner. When the loan is funded, and you get the keys, it's a great feeling to know you closed your loan exactly as you hoped.

About the author:

Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com , a residential mortgage company serving Oregon and Washington.