Five Factors that May Affect Your Loan Lock Time
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Rates are flat today. Today's rates with no lender fees are 3.625% APR on a 30 year, 2.875% APR on a 15 year and 2.750% APR on a 10 year. (click here for details)
So once you determine it is a great time for you to go ahead and lock in your loan, you will also need to consider - for how long.
So let's take a look at a few situations that can have some impact on your specific lock time.
Check it out in today's video:
First let me start out with the fact that a normal purchase or refinance should take around 30 days or less. So that is a good starting point for most transactions.
With that in mind, here are five things that will mess your lock time:
1. Are you buying a bank-owned property or a short sale property?If so, expect it to take some time since these types of properties can take longer, depending on the bank. And be prepared to pay an extension fee if you go pass the pre-determined lock. These can be a little tricky to determine the time needed to close. So be careful.
2. If you have appraisal issues with your value or repairs, this can also cause some delays.
3. Subordination agreements for second mortgages. Depending on who your second lien holder is, this can be no problem or a real nightmare. Check with your second mortgage lien holder on timeframes before you lock your loan.
4. Communication breakdown with the seller can hold up the process as well.This really holds true when something triggers a renegotiation of purchase price.
You know - Like if your home inspection requires some repairs. That's always fun!
5. Failure to get your loan officer the proper documentation.Don't mess around with providing the necessary documents. Get them with urgency and get exactly what your lender is asking for.
And just because you didn't need the documents last time you refinanced doesn't mean you don't actually need them this time around. Times have changed. Don't get me started.
Any way - so some of these things might be out of your hands, but other things may be controlled by you when it comes to closing delays. Don't be the one holding things up.
Now usually your lender and Realtor will push things along. But it's still your responsibility to follow up to make sure everyone is hitting the mark during the transaction.
That's all I have today.
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Tags: bank-owned property, bank-owned property, closing costs, closing costs, home appraisals, home appraisals, loan lock, loan lock, mortgage rate, mortgage rate, short-sale property, short-sale property