Interest rate change following loan disclosures being signed

[Josh Setterbo]

BP,

We have a home under contract with conventional financing. At the time of the loan disclosure document signing our interest rate was 3.375%, this was on July 7th. Today our lender asks if we want to lock in the interest rate, which we assumed that we had. The fed has raised the interest rate to 3.5% and we now have the options of:

You have a choice of a lender credit of $1,211 (to be applied towards closing costs) with a P&I payment of $1,447

OR

you have a choice of a rate buy down of $1,211 (added cost- paid at closing) with a P&I payment of $1,425

What was not made clear to us was that we needed to give a verbal, "Yes, we want to lock in the great 3.375% interest rate". I am just trying to figure out if this happens and you have to deal with it. Or if something was overlooked by the lender not to secure the rate and we are responsible to foot the bill.

Thanks for the advice,

Josh