Locking in a mortgage rate in a hurry

 

Locking in a mortgage rate in hurry can be a stressful decision for the borrower and loan officer. This week, the rates dropped dramatically Wednesday, but late in day. If you were in the know, you jumped on it and grabbed a low rate for yourself or your client. (My clients did!)

 

The holdovers might be sorry they took a greedy risk that rates would go lower and waited. However, those that did lock in also need to act fast. A few things you can do to insure keeping that rate:

 

·        Lock in for a longer period of time than you think you need (if you think you can close next week- think again!)

·        Know your lenders’ rate lock extension cost and policy

·        Get all your required paperwork together and into the bank as fast as possible

·        Send over all paperwork at once. Piecemeal, puts your file on the sidelines

·        Be ready to close by having your insurance, title report, payoff letter and other closing documents ready and in the right hands

·        Be nice- mean people go to the back of the line

 

 

The banks are understaffed and those that are left are crazy busy. So, loans are taking longer than usual to approve and get ready to close. Bank attorneys are backed up with too much paperwork and it is harder to schedule a closing. Be prepared, be helpful and be nice.

 

PS: Don’t think that the banks are dragging their feet so you lose your rate lock…they don’t do that anymore!

 

Dale Siegel