HomeLoans Blog

This article from Inman News is telling. With rates so low, buyers and homeowners are keyed into rates and lenders might be tempted to quote lower than they can lock.

Maybe switch to a bit higher margin on the actual lock day.

The article tells a story of a buyer who walked from a locked loan because another lender quoted a lower rate.

The lender with the lower interest rate would not lock the rate, instead waiting for complete borrower information and amazingly an appraisal.

Now there is no reason to hold the lock for an appraisal. That should be a warning sign.

The article suggests that the criteria in determining is the lender's lock requirements are legitimate is "whether the lender offers an objective method of disclosing its loan prices."

When comparing rate quotes, make sure the quotes are from the same time (not just day, the same time) and that lenders can lock that rate today.

Then as the new borrower, respect your commitment to the chosen lender and close your loan with them.